Referral Marketing

Referral marketing is a marketing technique in which consumers are recruited through referrals from others. Referred customers are more likely to be Repeat Customers and have a higher Loyalty Level than customers who are not referred.

Referred customers are also more likely to make purchases from the referring company again, and recommend the company to others.

There are four main ways that referral marketing can be implemented:

  • Active Referral: The referrer actively encourages the referred customer to make a purchase.

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