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Referral Marketing

What exactly is referral marketing?

Referral marketing is a tactic to get loyal clients and supporters to actively recommend your company to their contacts.

Studies have repeatedly demonstrated that consumers act on recommendations as well as seek them out. With the help of referral marketing, companies can manage and reward referrals at scale while preserving their natural organic and charitable character.

You’ve probably seen referral programmes, and perhaps even taken part in one. There is still considerable uncertainty about how to scale this strategy, despite the fact that most businesses are anecdotally thrilled and aware that recommendations are a big driver of new customers and value.

We’ve seen businesses create their own referral programmes, as well as others try to manually manage them using email and other simple tools. However, the most prosperous businesses automate the procedure by managing, tracking, and rewarding their ambassadors on a single platform.
Referral marketing’s straightforward objective is to use genuine word-of-mouth to generate a constant flow of high-quality recommendations for your company (and boost revenue as upscaling).

This brings us to referral marketing.

Brands and referral marketing?


  • Fashion and E-Commerce
    Large clienteles. active social media audiences. high lifetime values for customers. All of this translates to natural word-of-mouth, a need for recommendations, and lots of possibilities for inventive incentive systems.
  • B2B (Business to Business) – SAAS
    By utilising the power of recommendations, Gmail, Evernote, Dropbox, and Trello all saw early-stage exponential growth. These companies provide premium features or a share of the recurring income of the customers they refer as incentives for word-of-mouth marketing.
  • Large-Priced Articles
    Big ticket products like TVs, furniture, and even vehicles typically have greater margins and consumer values, allowing the companies who sell them to provide larger referral rewards that are more enticing to both sides.

A sector where your largest supporters, customers, associates, and influencers are already gushing about your company referral marketing completes it with a cherry on the cake(or your competitors).

One key lesson applies to many industries: Effective referral systems produce a natural network effect. An excessively high percentage of them will become new ambassadors as you gain more recommended consumers. The cycle will then begin again as those ambassadors bring in fresh clients.

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