What is Referral Marketing
What is Referral Marketing ?
Referral marketing (word-of-mouth) is a powerful strategy and one of the best marketing drivers for sales and conversion. Referral marketing is exactly what it sounds like: the process of one person referring a product, and the referee purchasing that product due to that recommendation.
There are two major reasons why referral marketing is very effective and still works
Trust is a second critical factor for referral marketing.If you know and like a person, you’re likely to trust their opinions—especially when compared to a salesperson working on commission. Take TripAdvisor as an example. Even if you don’t know the person reviewing a hotel or restaurant, you’re more likely to trust their review than you would the business’s website or a billboard promoting the company.
Twenty years ago, the reach of an average person was relatively small; for the most part, referrals were made face to face or over the phone. Today, with social media and review websites, the average person’s audience is enormous. They can reach hundreds if not thousands of friends and acquaintances in a matter of minutes with a simple Facebook post, Yelp review, or other public-facing review.