Even before the advent of social media, word of mouth was well documented as the most effective form of marketing. This remains true in the digital world, and many social media users place their trust in recommendations from friends and family. It’s also a big reason why influencer marketing has become a mainstream practice for marketers across industries.
Referrals are another powerful facet of word-of-mouth marketing, which can incentivize current customers to bring in new ones. An infographic from Referral SaaSquatch examines how and why referral marketing works.
The biggest contributing factor in the success of referral marketing is the desire to share. Everyone loves a great deal, and if referring a friend means bigger savings, all the better. Customers also like having options for how to refer their friends, with nearly 80 percent choosing to copy and paste. This method also results in the highest conversion rate of all other other sharing methods.
Check out the infographic below for more on how referral marketing works.