Referral marketing is an old marketing strategy. It’s basically a word-of-mouth recommendation (or referral) from an existing customer to a potential one. 

Over the years, referral marketing evolved from simple word-of-mouth of a friend to TV celebrities to influencer marketing, where the so-called internet personalities are being tapped by brands to recommend their products and services. 

Referral marketing can take many forms, but at its heart, it’s a way to get your biggest fans to help spread the word about your brand. In other words, referral marketing turns your current customers into brand advocates

As traditional advertising is losing its charm, more and more businesses turn to digital marketing and social media marketing, why do big companies choose to use referral marketing? Because there are many benefits of referral marketing, and they are incredible.

Here are some benefits of referral marketing.

People trust referrals from celebrities and other prominent personalities

This is one of the most compelling benefits of referral marketing. A lot of consumer reports indicate that recommendations and reviews coming from social media marketing are trusted more than traditional advertisements. And people are four times more likely to buy when referred by their friends.

Gain valuable customers

The customers referred by their peers already have a favourable opinion of your brand. That is why they are more likely to become loyal customers. Truth be told, a report of Wharton School of Business shows that referred customers are about 25% more loyal on average than other customers.

Increase customer engagement

Customer engagement is the long-term relationship between you and your customer.

It is a crucial factor to your business. You should take any chance you have to connect with your customers.

You can further engage your loyal and new customers via email marketing to let them know of your latest products and promotions. Increasing engagement will strengthen your online presence and increase the chances of potential revenue.

Referral programs also reward your current customers. Those gifts and discounts will make your customers more happy and satisfied. Not to mention, a customer who joins your referral program usually will visit your website more frequently to either claim rewards or discuss a product with others.

And more often a customer returns to your site, the more opportunities you have to remarket and promote.

Expand your market reach

By using your existing customers as your advocates, referral marketing allows you to reach a pretty large pool of people that you might not be able to dive into otherwise.

There are almost no limits to your customer telling a friend about a good product or service. And then their friends will tell their friends, who will tell their friends, and so on. Here generates a purchase loop and boosts repeated sales. You can even back your referral marketing with social media awareness campaign that will get more attention from your potential customers.

Customer referrals will allow you to expand your client base.

Positive brand awareness

Modern consumers want to fix themselves with brands that have a positive reputation. That is why building your brand awareness and reputation is a crucial task. Letting your existing customers talk about you through referrals is the best way to improve your brand’s reputation. 

These are just some of the key benefits of referral marketing that will definitely help your business grow both online and offline. But most importantly your customers’ recommendations will help you secure positive brand awareness and will help you reach out to more markets. 

Go Digital in One Go!

It’s time for your business to get proper recognition, so we’re here to help you reach your target audience!

Streamlined Campaigns will help you strategize your referral marketing campaign alongside other various digital and social media marketing strategies that will help you grow your brand.Get in touch with us now at and go digital in one go!