REFERRALS ARE CONTAGIOUS

Summary from the TLDR Marketing newsletter

Customers coming from referrals make 27.65% more purchase trips than non-referred customers. They are also 36% more likely to refer others, creating a flywheel effect that drives growth. Incentives further boost referrals - reminding referred customers of their referral origin increased referrals by 21%, and pre-filled referral messages with incentives raised rates by up to 53%. In a study of 51.7 million customers, 19 out of 20 companies saw higher referral rates among referred customers when both parties received a reward. To maximize referrals, companies should use tiered incentives, track referral-based conversions, and time referral requests after positive customer experiences.