What referral programs can do for your business

image illustrating referral programs

Marketing

Jul 18, 2022

Henry Bewicke - Content Writer

Henry Bewicke

Content Writer

Time to read icon

3 minutes to read

Talon.One’s new White Paper, ‘Increasing Leads & Loyalty with Effective Referrals’, explores why referrals are such an effective tool for lead generation, brand loyalty and sales. 

Referrals are by no means a new business tool. They’ve been around for a long time, helping businesses increase their exposure, all while giving back to their most loyal customers. But many are still apprehensive about setting up their own referral schemes, unaware of the tangible benefits they offer. There is a misconception that referral programs give mediocre returns and require a considerable amount of time and effort to set up.

The Stats

When it comes to the benefits of referral schemes, the stats speak for themselves. 

  • 28% of millennials say they won't try a product if their friends don't approve of it.

  • Word of mouth is the primary factor behind 20-50% of purchasing decisions.

  • B2B companies with referrals have a 70% higher conversion rate, and they report a 69% faster close time on sales.

Leads secured via referral are some of the most valuable of all. In fact, customers referred by friends have a 25% higher lifetime value than normal customers. When you take into account the fact that referral schemes are inexpensive to set up and run, there’s very little reason not to consider launching your own.

Getting Set Up

While setting up your own referral scheme may have been tricky in the past, things have moved on a long way from paper forms and applications. 

Fully-digitized referrals are now the norm which makes them simpler to set up and much quicker to customize variations of the same program for individual market segments. These tailored referral incentives are more relevant and engaging for individual customers and provide businesses with a higher return on investment.

Talon.One’s Promotion Engine allows you to set up referral campaigns and tune many specific variables depending on your unique business requirements. The referral functionality can also be used alongside coupons and loyalty programs to build complementary promotional campaigns.

In our latest Talon.One White Paper, ‘Increasing Leads & Loyalty with Effective Referrals’, we run through referral schemes, explain what happens behind the scenes and give advice on how to implement your own programs quickly and easily.

Get your free copy of ‘Increasing Leads & Loyalty with Effective Referrals’ now and boost your referral campaigns.

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David Hartery

Content Lead at Talon.One

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