For the company, a referral program ensures that it does not incur promotional or sales force expenses.
It only adds clients through the recommendations of its promoters to close contacts.
Even today there are companies whose strategy is based exclusively on this business model,
due to the feasibility of increasing the customer base and increasing sales
without exaggerated expenses.According to statistics:
Search interest for “Affiliate Marketing
” has increased more than 200 percent since 2015
85 percent of online shoppers
seek information and recommendations from their contacts before making a purchase
Affiliate and referral programs are the primary customer acquisition channel
for 40 percent of US businesses
A referral and affiliate marketing program helps a lot for small businesses and brands just starting on their business journey. But it is also a strategy used by large corporations
worldwide such as Amazon, eBay, Aliexpress, Starbucks, Sephora, etc.
And the reason is that they should only take into account offering an attractive, necessary, and original reward so that their clients or users are motivated to recommend their products and services.
They will add customers and the business will not have to invest. It is a highly feasible, accessible, and modern form of word-of-mouth
In addition, the referral strategy also includes a loyalty program
to generate loyalty among users and not lose customers. Through referral marketing, businesses provide their promoters with tools that "empower
" them to actively participate in the life of the company and learn its main qualities.