Abbey StephanLead Editor
- December 16, 2022
- 4 minute read
- Abbey is a digital marketer, copywriter, and lead editor. She has worked on over 200 client campaigns and WebFX, and she specializes in marketing strategy analysis and industry-specific digital marketing plans. Outside of writing and editing, you’ll likely find her taking pictures of her cat, making a new playlist, or tending to her houseplants.
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. For more marketing tips, tricks, and statistics, sign up for Revenue Weekly!
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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:
- 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.
- 82% of employees rated employee referrals above all other sourcing options when asked to choose the most effective means of hiring new employees.
- Employee referrals are up to five times more likely to be hired than candidates who apply for a job in other ways.
- 30-40% of new hires come from employee referrals.
- 88% of employers consider employee referral programs the best source of applicants.
- The average retention rate of referrals is 46%, while the average rate of job candidates obtained through job boards is only 33%.
- Recruiting referrals can reduce company turnover by 20%.
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:
- When buying beauty products online, six in ten consumers from the United States read reviews and ratings.
- Sources state that, according to a global study from 2022, sites with embedded ratings and reviews found a 38% increase in conversion rates.
- 40% of consumers regularly read online reviews.
- 79% of consumers trust online reviews just as much as personal recommendations.
- When customers are looking for a new website, 83% prefer reviews to be relevant and recent.
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:
- Friends’ social media posts influence how 81% of U.S. consumers buy products and services.
- More than 25% of working-age Internet users use social media to search for products and services to buy.
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:
- 78% of users who follow a brand on social media will promote that brand to friends and family.
- Consumers are 90% more likely to trust and purchase from a brand recommended by their friends.
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.
At WebFX, we’ve helped thousands of businesses develop their brand awareness and reach new audiences through marketing techniques like referral marketing. We are by your side whether you’re looking for ways to grow your business or need help with other marketing solutions.
Abbey is a digital marketer, copywriter, and lead editor. She has worked on over 200 client campaigns and WebFX, and she specializes in marketing strategy analysis and industry-specific digital marketing plans. Outside of writing and editing, you’ll likely find her taking pictures of her cat, making a new playlist, or tending to her houseplants.
WebFX provides digital marketing solutions with expert marketers, designers, and developers to increase visibility, conversions, and revenue. Learn more