In almost every industry, referrals are the gold standard of customer acquisition. Research has repeatedly shown that referred leads close faster, buy more, and stay longer — all with significantly less effort and at a much lower CPA than non-referred prospects. A University of Pennsylvania study[1] found that referred customers are more loyal and profitable — by a 16% margin — than their non-referred counterparts.

If a friend or colleague refers their favorite product, service, or platform - what would be your first response? Typically, people ask “why do you like it?” or “what makes it different?” or “what was your experience with it?” Which is why it’s no surprise that online reviews can play a vital role in your brand’s referral marketing program. In fact, according to BrightLocal, 88% of consumers trust online reviews as much as personal recommendations.

Word-of-mouth marketing is all around us. Whether it’s in the form of reading product reviews or texting a friend for a referral before making a purchase, word-of-mouth marketing strategy now plays a large role in the buying process for consumers and businesses.

 If your company is new to referral marketing, how do you develop a program from scratch? How do you harness the power of your existing customers and turn them into your most vocal fans? What do you offer as rewards? How do you ensure that your program optimizes for new leads and brand loyalty, all while remaining manageable and measurable?

A successful referral program isn’t just about using your existing customers to gain new leads. With 74% of consumers identifying word-of-mouth as a key influencer in purchasing decisions and 92% of people ages 18 to 34 saying that they seek recommendations from friends and family before making a purchase, referral marketing is an integral component of today’s marketplace - and one that can yield impressive results if the right tactics are employed. 

Securing partners (and figuring out incentives) for your partner affiliate program are crucial first steps in building a successful partnership. However, maintaining and nurturing relationships as well as delivering the best experience possible can be more important aspects of your partner program. While these elements are sure to be time and resource intensive, they are also closely tied to long-term success. 

It's that time of year - a time to review and reflect on the year behind us, while planning and strategizing for the one ahead.