Customer referrals are the most effective way to increase new sales and ARR
Happy customers refer
Your customers want to refer. Happy customers like to help grow your customer base. They know the more people using your service or product means continued growth of your platform and support.
83% of satisfied customers are willing to refer others, yet only 29% actually do – because they were never asked.
Referred customers are also more loyal and have a 16% higher lifetime value.
People are 4x more likely to make a purchase when they are referred to your product or service by an existing customer.
Word of mouth is the primary factor behind 20 to 50 percent of all purchasing decisions.
Referral marketing often returns a high ROI as compared to other traditional types of paid marketing.
When effectivley implemented, referral marketing can return a higher ROI compared to other paid marketing initiatives.