Study after study has proven that referral marketing is one of the best forms of marketing when it comes to sales and conversions. Simply put, referral marketing, sometimes also called word-of-mouth marketing, is just people purchasing products based on someone else's opinion or influence. It's a powerful marketing channel because people trust the opinions of other people in their lives and people they respect, whether that be family, friends, social media influencers or big stars.
It makes sense, we regularly get advice from our friends on which TV shows to watch, movies to rent, or restaurant to go to. And, as end consumers ourselves, we wan’t to share our stories, the products we buy and the brands we choose. This becomes magnified when the buying experience and products are exceptional.
In this post, we will show you the three fundamental reasons referral marketing is so powerful, some examples of extremely successful referral campaigns, and provide you with seven tactical steps to build a powerful referral marketing engine for your business.