26 Stats That Prove Why Referrals Are Important



When it comes to advertising and increasing sales, nothing beats referral marketing, here’s a list of 26 referral stats that prove why your business needs a well though out and executed referral program.

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When it comes to advertising and increasing sales, nothing beats referral marketing. The Word of Mouth Marketing Association reports that every day in the United States, there are approximately 2.4 billion brand-related conversations. People will always be interested in talking about and sharing the products and services that they enjoy using. Likewise, people are far more likely to trust brands after hearing about them from friends and family. As such, it is only natural that you and your friends like the same things, and some of your brand loyalty will have been passed to you by your these connections.
Need some facts to back up our claim? No problem, we’ve got an entire list of referral marketing stats to prove why it’s so important to your business.

84% of consumers trust the recommendations of others over other forms of marketing. (Nielsen)
40% of US moviegoers value recommendations posted by friends or family on social media. (Nielsen)
87% of buyers go out and look for advice before choosing. (BuyerSphere)
More than 50% of these buyer seek such advice from their social media contacts. (BuyerSphere)
43% of consumers are more likely to buy a new product when learning about it on social media. (Nielsen)
Online and offline consumer conversations and recommendations account for 13% of consumer sales, on average, which represents $6 trillion in annual consumer spending. (WOMMA)
In higher price-point categories, word of mouth’s impact is almost 20% of sales. (WOMMA)
Non-cash incentives are 24% more effective at boosting performance than cash incentives – University of Chicago
Offering a reward increases referral likelihood, but the size of the reward does not matter – American Marketing Association
The LifeTime Value of a new referral customer is 16% higher – Wharton School of Business
83% of consumers are willing to refer after a positive experience, yet only 29% actually do – Texas Tech
79% of U.S. consumers who’ve “Liked” a brand on Facebook did so in order to receive discounts or other incentives. (Market Force)
49% of U.S. consumers say friends and family are their top sources of brand awareness, up from 43% in 2009. (Jack Morton)
Need some facts to back up our claim? No problem, we’ve got an entire list of referral marketing stats to prove why it’s so important to your business.
Referrals are 36x more valuable than a cold call. 
Referrals are 10x more valuable than a tradeshow lead 

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