Referral Marketing

Term from the CRM Glossary

Definition

Referral marketing is based on the trust that existing customers have in a company. Satisfied customers are a key resource, as their positive experiences can attract potential new customers. One way to encourage referrals is to implement loyalty programs that incentivize customers to make recommendations.

Using testimonials and customer reviews in marketing materials is an effective strategy to build trust and acquire new customers. Social media can be heavily utilized to increase the visibility of referrals and reach a wider audience.

A positive customer experience is crucial to increase the likelihood of customers making referrals. Referral marketing not only promotes the acquisition of new customers but also strengthens the loyalty of existing ones.

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