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2-way referral programMilestone-based referral programWaiting list for upcoming
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list for an upcoming event
Creators & Media
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Saas
Events
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E-commerce
2-way referral program

Your users refer other businesses, and both sides get rewarded when the referred
business upgrades to a paid plan. (With conversion tracking)

Waiting list for upcoming SaaS

Create a referral waiting list before you launch to get early adopters and
market validation.

Milestone-based referral program

The more successful referrals your users make, the better rewards they unlock.
(With conversion tracking)

Giveaway for pre-sale tickets

People sign up and refer friends to win a free ticket. If they don't win, they
get early access to the pre-sale.

Waiting list for an upcoming event

People join the waiting list, refer their friends to climb the queue and get
early access to the tickets or the event.

Giveaway for pre-sale tickets (leaderboard)

A referral giveaway with a social element—people see a leaderboard of who's
winning the giveaway.

Newsletter referral program

Create an in-email referral program to reward your newsletter readers for
inviting more subscribers.

Entries-based giveaway

Your existing audience refers their friends to increase their chances of winning
a prize.

Upcoming community waitlist

Find early community members with a referral waitlist where people refer friends
to climb the queue and get exclusive access.

Early adopters before launching

People get early access to your product when they reach the top of the waiting
list by referring friends.

2-way referral program

Your users referer their friends, and both sides get rewarded when the friend
makes a purchase.

Better rewards with more referrals

Set milestones with a tiered referral system, offering better prizes as they
reach each milestone.

Shopify store referral program

Create an ongoing referral program using our Shopify App to reward your
customers for referring friends.

Entries-based giveaway

New and existing customers refer friends to increase their chances of winning a
prize.

Store coming soon

Create a referral waiting list for your upcoming store to collect email
addresses.

Resources
Product Launch 101 
Referral Marketing 101
DocumentationFree E-booksVideosDevelopers / API
Free E-booksProduct Launch 101Referral Marketing 101VideosDevelopers /
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Guide Home
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REFERRAL MARKETING STATISTICS

TABLE OF CONTENTS

GENERAL REFERRAL MARKETING STATISTICS

REFERRAL MARKETING AND CONSUMER STATISTICS

REFERRAL MARKETING EFFECTIVENESS STATISTICS

REWARD AND INCENTIVE STATISTICS














50 REFERRAL MARKETING STATISTICS THAT PROVE ITS POWER

Every business owner wants to see their business grow. They want happy customers
with high customer lifetime value. 

So they turn to you as their digital marketer to come up with a solution. 

After much thought, you’re certain that a traditional marketing strategy
wouldn't cut it. 

You’re faced with a small dilemma: what options do you have if you’re going to
turn things around?

That’s where referral marketing (aka word-of-mouth marketing) comes into play.

This form of advertising can help you get:

 * Higher conversion rates
 * More loyal customers
 * Awareness for your new products
 * New leads

“That’s what they say about every marketing strategy. How’s this one any
different?”

Well, that’s why we’ve decided to show you 50 referral statistics that prove how
powerful referral marketing is. 

Here are five key stats to set the ball rolling:



Ready?

Let’s get started!


GENERAL REFERRAL MARKETING STATISTICS

Referral marketing is a marketing strategy that helps brands leverage their
existing customers by reaching out to family members or friends so the business
can grow. 

It’s a cost-effective way of expanding your business that also results in: 

 * Engagement 
 * A higher retention rate
 * Referral leads
 * Satisfied customers 
 * Awareness

Referral marketing should be a part of your marketing efforts and here’s why:  

 1. According to 84% of B2B decision-makers, the B2B buying process starts with
    a referral. (Source: Influitive)
 2. People are 90% more likely to trust and buy from a brand recommended by a
    friend. (Source: Nielsen)
 3. 55% of B2Bs with referral programs believe that their sales efforts are
    “highly effective,” compared to 35% of companies without referral programs.
    (Source: Influitive)
 4. Only 30% of B2B companies have a formal referral program in place. (Source:
    Influitive)
 5. Peer recommendations outweigh blogs and online media when it comes to
    researching software options. (Source: Capterra)
 6. 91% of customers say they’d give referrals, but only 11% of salespeople ask
    for them. (Source: Dale Carnegie)
 7. 86% of B2B companies with a referral program experience growth. (Source:
    Influitive)
 8. There are 3.3 billion brand mentions in 2.4 billion brand-related
    conversations every day in the US. (Source: Adweek)
 9. Referred customers have a 59% higher lifetime value. (Source: Influitive)

…and on we go!


REFERRAL MARKETING AND CONSUMER STATISTICS

We’ve shown you proof that referral marketing programs work.

Now, you’re probably wondering whether your consumers will be open to sharing
your product with their network face-to-face or on social media.  

That sound like you?

Well, generally speaking, humans are social creatures. We want to share our good
and bad experiences.

So yes, there’s a good chance your customers will be open to referring.

Don’t just take our word for it—here are some amazing statistics that are sure
to convince you:

 1. 84% of people from 58 countries say that they trust recommendations from
    friends and family. (Source: Nielsen)
 2. 86% of B2B purchasing decisions are based on word-of-mouth from peers.
    (Source: Blanc and Otus)
 3. 75% of consumers make decisions or overcome concerns about brands based on
    conversations with peers. 59% of those people recommended a brand to a
    friend or colleague. (Source: Edelman)
 4. 30% of consumers worldwide say that they make belief-driven purchase
    decisions more than they did three years ago. 89% of consumers trust
    information from peers. (Source: Edelman)

 5.  74% refer to word-of-mouth as their main point of influence for their path
     of purpose. (Source: Adweek)
 6.  When it comes to buying a product, the most trusted advice seems to come
     from real-life experiences. (Source: Reevo)
 7.  B2B buyers are increasingly turning to social networks to not only share
     information but to give each other advice. (Source: Blanc and Otus)
 8.  88% trust online reviews as much as they trust reviews from their personal
     contacts. (Source: Bright Local)
 9.  92% of buyers trust recommendations and suggestions from friends and family
     more than advertising. (Source: Nielsen)
 10.  28% of millennials say they won’t try a product if their friends don’t
     approve of it. (Source: Extole)
 11.  Millennials won’t buy without input from others. (Source: Bazaarvoice)
 12.  49% of US consumers say friends and family are their top sources of brand 
     awareness. (Source: Jack Morton)
 13.  83% of consumers are willing to refer after a positive experience—yet only
     29% actually do. (Source: Texas Tech University)
 14.  Word-of-mouth drives sales for B2B tech companies. (Source: Blanc and
     Otus)

See why we said they’ll be willing?

Let’s continue!


REFERRAL MARKETING EFFECTIVENESS STATISTICS

And then, there’s also the matter of efficiency.

You want to be certain that investing in a customer referral program will be
profitable for your business. 

We want that for you too and that’s why we’ve added statistics showing you how
effective referral marketing can be.

 1. 52.2% of US small businesses say that referrals are the most successful
    marketing tool for them. (Source: Insider Intelligence)
 2. Referrals are the 2nd best revenue source for small businesses in the US.
    (Source: Insider Intelligence)
 3. Brand advocates are 70% more likely to be considered a good source of
    information. (Source: G2)
 4. Referred customers are more loyal. (Source: Journal of Marketing)
 5. 79% of IT buyers while considering a specific vendor, consume their content
    based on referrals from peers. (Source: Spiceworks)
 6. Brand advocates are 70% more likely to be seen as a good source of
    information by people. (Source: Marketing Charts)
 7. Referred customers are proven to create larger profit margins than other
    customers. (Source: Journal of Marketing)

 8.  Referred customers have a 37% higher probability of making another
     purchase. (Source: Deloitte)
 9.   Referral is by far the highest acquisition channel for conversion rate
     (almost 4x the average). (Source: Marketo)
 10.  43% of marketers using referrals acquire more than 35 percent of their
     new  customers with it. (Source: Gigaom Research)
 11.  Offline word-of-mouth impression drives at least 5 times more sales than a
     paid advertising impression. (Source: Cision)
 12.  The lifetime value of referred customers, measured over a six-year
     horizon, was 16% higher, on average, than that of non-referred customers.
     (Source: Wharton School of Business)
 13.  According to 78% of marketers, referral marketing produces “good” or
     “excellent” leads. (Source: Software Advice)
 14.  The churn rate of referred customers is 18% lower than other marketing
     channels (Source: Wharton School of Business)
 15.  Word-of-mouth generates more than twice the sales of paid advertising in
     some industries (Source: McKinsey & Co)
 16.  Advocacy is among the top influences of new auto purchases, with over a
     third of new customers saying they were influenced by recommendations from
     friends. (Source: Foresight)

 17.  You can expect at least 16% more in profits from referred customers.
     (Source: Harvard Business Review)
     
     
 18.  60% of marketers say that referral programs generate a high volume of
     leads. (Source: Forbes)
     
     
 19.  85% of small businesses say word-of-mouth referrals are the number one way
     that new prospects find out about them. (Source: Small Business Trends)
     
     
 20.  82% of small business owners cite referrals as the primary source of new
     business. (Source: Constant Contact)

We know you want us to continue, but let’s pause here so we can show you some
other interesting facts. 

Let’s go on!


REWARD AND INCENTIVE STATISTICS

If you have a great product and excellent customer service, this can inspire
people to share your product with their network.

Throwing rewards or incentives in the mix will get you even better results.

Why? 

Rewards are at the center of referral marketing campaigns.

Here are some statistics that support this:

 1. 84% of Americans say that an exclusive offer would make them buy from a
    specific brand. (Source: Kelton & SheerID)
 2. 82% of consumers say great offers will increase the frequency at which they
    shop with a brand. (Source: Kelton & SheerID)
 3. 91% of Americans would share an exclusive offer with their friends/family.
    (Source: Kelton & SheerID)
 4. 47% of consumers feel excited when they receive a special offer. (Source:
    Kelton & SheerID)
 5. 51% of Americans say they would prefer “winning” a special offer through a
    loyalty program accessible to everyone. (Source: Kelton & SheerID)

 6. 94% of Americans would take advantage of an exclusive offer provided by a
    brand that the brand would not typically offer to the general public.
    (Source: Kelto & SheerID)
 7. Offering a reward increases referral likelihood, but the size of the reward
    does not matter. (Source: American Marketing Association)

Alright, let’s wrap this up!


BEFORE YOU GO

That’s all of the 50 referral marketing statistics as promised 🙃.

We put all of these together for one reason—to show you from different angles
that referral marketing works. 

 And we’re pretty sure it did a good job convincing you. 

Ready to create a referral marketing campaign for your business?

By all means, book a demo with us so we can guide you on how to get started. 

See you soon! 

‍

Written by:


NIKITAS FILOSOFOF

Nik has launched products in many industries for himself and clients. He's
responsible for growth at Viral Loops, and he has worked in marketing since he
was 17. Passionate about applying psychology to marketing. Favorite number: 42.
Let's connect on LinkedIn


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