20 Referral Marketing Statistics to recommend to a friend

Referral marketing is a strategy that involves encouraging and incentivizing current customers to refer new customers to a business. This form of marketing can be highly effective in generating new leads and increasing customer loyalty. In this article, we will explore some of the most important statistics related to the performance of referral marketing.

Referral Marketing Stats: Market & Trends

1. 92% of consumers trust referrals from people they know. (Source: Nielsen)

2. 88% of marketers say that referral marketing is one of the most effective forms of marketing. (Source: TapMango)

3. 83% of satisfied customers are willing to refer a product or service to their friends and family. (Source: Texas Tech University)

4. 82% of small business owners say that referrals are the main way they acquire new customers. (Source: Alignable)

5. 64% of marketers say that referral marketing is a key strategy for generating new leads. (Source: BrightLocal)

6. 81% of consumers are more likely to engage with a brand that has a referral program. (Source: ReferralCandy)

7. 63% of marketers say that referral marketing is the most effective form of lead generation. (Source: Digital Marketing Institute)

Referral Marketing Stats: Performance & ROI

1. Referral marketing has a 16% higher lifetime value than non-referred customers. (Source: Wharton School of Business)

2. Referral marketing can increase customer lifetime value by up to 16%. (Source: Extole)

3. Referral marketing generates 3-5x higher conversion rates than other forms of marketing. (Source: Invesp)

4. Referred customers have a 25% higher retention rate than non-referred customers. (Source: Harvard Business Review)

5. 43% of consumers are more likely to make a purchase when they are referred by a friend. (Source: MarketShare)

6. Referred customers are 18% more likely to stay with a business over time than non-referred customers. (Source: Harvard Business Review)

7. Referral marketing can cost up to 25x less than other forms of marketing. (Source: Invesp)

8. Referral marketing can result in a 70% higher conversion rate compared to other forms of marketing. (Source: Forbes)

9. 29% of referred customers make a purchase compared to 1% of cold contacts. (Source: Heinz Marketing)

10. Referral marketing can lead to a 13% higher retention rate for customers acquired through referrals. (Source: Invesp)

11. Referral marketing can result in a 37% higher customer retention rate. (Source: Deloitte)

12. Companies that have a referral program experience a 69% faster time to close compared to those that don't. (Source: Referral Rock)

13. 53% of marketers say that referral marketing has a higher ROI than other forms of marketing. (Source: Referral Rock)

Referral Statistics: Summary

Referral marketing can be a highly effective strategy for generating new leads, increasing customer loyalty, and boosting sales. The statistics above demonstrate the value of this form of marketing, with referral marketing generating higher conversion rates, retention rates, and customer lifetime value than other forms of marketing. By implementing a referral program, businesses can incentivize their customers to refer new leads, ultimately resulting in a higher ROI and faster time to close.

For more Referral Marketing benchmarks, statistics and insights please visit our dedicated Loyalty & Referral Benchmarks section.