18 Referral Marketing Statistics That Prove Its Value

Referral marketing is a way to use existing customers to drive new sales by incentivizing them to refer their friends, family, or colleagues. It’s a great way to expand your reach while keeping costs low.

Referral marketing continues to grow in popularity, and it’s easy to see why. Customers referred by friends and family show increased satisfaction with their purchases and are more likely to make another purchase in the future.

This positive reception means companies can turn to referral marketing, get customers through their doors, find new clients, and keep them coming back!

The stats are in — referrals can change the game. Keep reading for some of the most compelling referral marketing statistics to see how referrals can improve your bottom line:

• Employee referral marketing statistics
• Online reviews statistics
• Social media referral statistics
• Word-of-mouth marketing statistics

For more marketing tips, tricks, and statistics, sign up for Revenue Weekly!

Employee referral marketing statistics

Employee referrals are a great way to find new employees, but they do more than help you fill your open positions more quickly. Employee referrals build your company culture and can make an enormous difference in employee retention.

The following employee referral statistics show that employee referrals are one of the most effective ways to hire and keep top talent:

1. The average employee who joins a company through an employee referral stays for four years, whereas the average job board hire only stays for two years. (Source)
2. Employee referrals are up to five times more likely to be hired than candidates who apply for a job in other ways. (Source)
3. 88% of employers consider employee referral programs the best source of applicants. (Source)
4. 82% of employees rated employee referrals above all other sourcing options when asked to choose the most effective means of hiring new employees. (Source)
5. The average retention rate of referrals is 46%, while the average rate of job candidates obtained through job boards is only 33%. (Source)
6. 30-50% of new hires come from employee referrals. (Source)
7. Recruiting referrals can reduce company turnover by 20%. (Source)

Online reviews statistics

Reviews have established themselves as a powerful part of referral marketing. From opinions to product ratings, reviews are no longer only left on Yelp and Amazon — they’re everywhere!

Reviews have become a major source of information for consumers, so businesses look for ways to get more on their sites. Here are five statistics that prove the importance of online reviews in referral marketing:

8. When buying beauty products online, six in ten consumers from the United States read reviews and ratings. (Source)
9. For 91% of consumers, local branch reviews affect their overall perceptions of big brands. (Source)
10. When customers are looking for a new website, 83% prefer reviews to be relevant and recent. (Source)
11. 41% of consumers use three or more review sites before purchasing from a local business. (Source)
12. 36% of consumers use two review sites before deciding to buy from a local business. (Source)

Social media referral statistics

Social media is dubbed “social” for a reason. People love sharing their experiences with friends and family, and businesses have taken advantage of this to grow their businesses.

Whether you’re trying to get new clients or let people know about your latest product, social media can increase referral marketing reach personally and allows you to connect with them on a deeper level.

Below, you’ll find four statistics proving social media’s power:

13. YouTube is the top social media platform driving traffic to Amazon, accounting for almost 60% of referrals in December 2023. (Source)
14. Friends’ social media posts influence how 81% of U.S. consumers buy products and services. (Source)
15. 34% of consumers use Instagram as an alternative local business review platform. (Source)
16. 23% of consumers use TikTok as an alternative local business review platform. (Source)

Word-of-mouth marketing statistics

Word-of-mouth marketing, which gains referrals organically and authentically, continues to prove itself vital to referral marketing.

These three stats show just how powerful word-of-mouth is to referral marketing:

17. Word-of-mouth is the top source of brand discovery among online users in the U.S. (Source)
18. Consumers are 90% more likely to trust and purchase from a brand recommended by their friends. (Source)

Our digital marketing campaigns impact the metrics that improve your bottom line.

See Our Approach

WebFX has driven the following results for clients:

$10 billion

in client revenue

24 million

leads for our clients

7.14 million

client phone calls

Get more referrals with WebFX

There you have it — referral marketing is here to stay. This tried-and-true method works and will only continue to grow in importance as time goes on.

If you want to stay ahead of the curve and see what’s coming up next in the marketing world, WebFX can help.

We’ve been helping thousands of businesses develop their brand awareness and reach new audiences through marketing techniques like referral marketing. Our team is excited to help you boost your bottom-line growth with referral marketing and other marketing solutions.

Contact us online or call 888-601-5359 to speak with one of our experts today.