Why referral marketing?
According to Gartner, referral marketing is a channel that offers a high volume of excellent, low cost leads.
Referral marketing is the process of leveraging customers, partners or employees to refer their personal and professional network to your product or service. With an automated referral marketing program companies can obtain personalized lead generation at scale.
When a current customer, partner or employee refers people to you, those referrals are the highest quality because they come from a trusted source who knows your brand and knows the person they referred to you. This way, referral marketing extends the bond of trust that was previously built between the advocate and their network to include your brand.
Generating new leads is the #1 challenge marketers are facing according to respondents. And with budgets only tightening and channels like PPC’s cost per lead increasing, it has become more important than ever before to make sure that organic channels like referral marketing are delivering high quality leads.
Referral programs that are enhanced with automation and sales enablement provide an organic channel for marketing and direct sales professionals with simple tools for driving a consistent flow of high quality leads. Salespeople have all the information they need to contact and nurture advocates and prospects and facilitate seamless communication with referrals to dramatically increase the numbers of leads converting to customers .
As marketers we know that word of mouth occurs in our ecosystems and that it can have a powerful impact on buying decisions. A study by Epsilon exemplifies this influence and the reason for it—namely TRUSTWORTHINESS.
People trust recommendations from friends or colleagues more far more than content received from marketing programs.
“Many of the more traditional demand generation techniques have been exhausted, and therefore referral automation platforms enable sellers to engage with potential customers the way they want to engage.”
“Customer advocacy can support demand generation by increasing the velocity of identified deals. Referral deals move faster through the pipeline.”
“Referral marketing is a channel that offers a high volume of excellent, low-cost leads.”
“53 percent of b-to-b companies are planning to invest in technology to support customer advocacy efforts in the next 12 months."
“Customer advocacy solutions can deliver significant business benefits by driving referral business and expanding wallet share among existing customers.”
"Customer advocacy is a critical area where technology helps companies get the scale they need to extend the contribution of their customer advocates.“
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