One of the oldest and most effective forms of communication that can lead to customer acquisition is word of mouth (WOM) marketing 1. For this reason, referral marketing, which makes use of WOM, is getting to the forefront again.
Numerous studies have proven that referrals are the most trusted form of advertisement. To add to that, referrals are created by happy customers, who are usually willing to spread word-of-mouth about your business for free, according to Megan Mosley in G2Crowd.com.
In the previous marketing regime of mass marketing communication, cold calls and mass mailing have lost their efficiency. Also, now in the age of digital marketing, companies are interacting more directly with their customers, not really giving them a chance to speak good about your business…
But are your loyal and satisfied customers communicating their patronage with their community and so helping you to get new customers? There is a real opportunity for businesses to invest in referral marketing campaigns.