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7 major Advantages of Referral program

  • by
  • Rashmi Singh
  • 2 min 35 sec read

When you hear the words ‘Game of Thrones’ do you remember where did you hear about it first? I bet it was a friend who could not stop raving about this great show on HBO. How he would tell you that he has never seen anything as good as this. His nonstop blabber about Game of Thrones might have either made you cut off from him or pushed you to start watching it. The chances of the latter are more. You liked the show or not is a different story. There are no statistics available online but I can guarantee that more than 50 per cent of Game of Thrones’ viewers started watching the show because someone referred the show to them. The whole point of this story is that referrals do work.

 

Why referrals?

Customers in general love to share photos, posts, memes, jokes within their social network. If they like anything they want to pass it on to their close friends via WhatsApp, Facebook, Twitter etc. Same goes for online shopping. If customers buy something online and happen to like it, they will share it on their social media feeds. That will tempt other people to inquire about it.

Therefore referrals are the easiest and cheapest way to get your existing customers to market your product to new customers. Anytime you see a youtube video reviewing products you can check that such videos always provide you with referral codes. The reason is that this not only helps the one advertising the product but also the one buying the product through that referral code. Referred customers are, on average, 4.5 cents per day more profitable than other customers.

 In the words of Mark Zuckerberg

 

‘’People influence people. Nothing influences people more than a recommendation from a trusted friend. A trusted referral influences people more than the best broadcast message. A trusted referral is the Holy Grail of advertising.’’

 

Advantages of referrals:

Referral programs are a must for customer acquisition. They are also the cheapest and quickest way to get new customers to buy a product. When it comes to offline shopping only the referee gets a discount when he/she mentions a specific reference. But in online shopping merchants have the opportunity to reward both parties.


    7 major Advantages of Referral program
  • Written by
  • Rashmi Singh
  • Oct 30, 2019

  • Rashmi is the Content and Social Media Lead at Flits. She is always thinking about how to make Flits perfect for better user experience & Merchant Growth. You may find her surfing on Netflix in her free time.

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