They’ll trust you more—On average, a referred customer spends 15-25% more on their first order. That’s because a customer referred by a friend is predisposed to liking and trusting your brand before even making a purchase.
They’re not coming to you cold, they’ve landed at your door as a result of a personal, emotional connection.
They’ll be a better fit—New customers acquired via existing ones are much more likely to fit your ideal customer profile, decreasing the chances they’ll be bargain-hunters looking for a one-off purchase and increasing their value to your business. Not only do they spend more straight off the bat, referred customers also make significantly more repeat purchases.
They’ll play it forward—When someone does you a favour, naturally you’ll want to reciprocate. Referrals are 3x more likely to go on and recommend your brand to someone else, so they too can benefit from the introduction.
New customer acquisition rate—Boosting your acquisition rate while driving acquisition costs down is decisive for profitability. Mention Me’s referral marketing system drives up to 30% increases in new customer acquisition.
Average order value (AOV) of referred customers—While not losing track of the long-term value of your newly acquired customers, you need to keep tabs on their spending in the here and now. On average, referred customers have an 11% higher AOV than other customers.
Onward referral rate—With customer referral programs, the aim is to create an onward chain of goodwill. Referred customers are 5x more likely to refer onward, helping you build a community of people who love and advocate for your brand.
Paid advertising conversion rate—If you’re tapping into a network of fans and advocates, your paid ads don’t need to do as much heavy lifting. Instead, ads can reinforce the positive messaging from personal connections. Mention Me’s referral marketing tools have helped our clients achieve a 65% increase in conversion rates from their paid social media ads and a 15% reduction in CPA on social.
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