If your business doesn’t have a referral program and you haven’t thought about creating one, you’re making costly mistakes. Keep reading to learn why referrals are so beneficial, whether they relate to an online-only brand, a physical store, or both.

People Trust Word-Of-Mouth Recommendations

Every day, people are bombarded with advertisements on TV and in public transit vehicles, stores, and elsewhere. Although these methods encourage buying behaviors to an extent, studies show they are not usually as effective as what happens when people give natural, word-of-mouth tips to their friends about what they love to buy.

That’s because people generally trust people they know, not a random voice on a radio commercial or a smiling face on a television ad. Also, consider that people only give advice about what to buy when they are extremely confident because they don’t want to make bad impressions by giving the go-ahead to buy low-quality products.

Referrals Are Highly Targeted

When talking about the products they like to use, people often do it with individuals who are likely to find similar benefits. For example, if a person with chronically dry skin falls in love with a lotion that finally stops the chronic itching and peeling, he or she would not sing the praises of that product to just anyone, but instead to those who also have skin issues.

Because of the two realities described above, referrals are good for business, and they could boost yours. Keep in mind, any worthwhile referral program should have clear, measurable incentives. Otherwise, people might wonder, “Why should I bother referring my friends to this company?” Although some people get a strong sense of satisfaction from giving referrals, others may prefer to keep their purchasing trends private, unless given a good reason to disclose them.

Don’t wait any longer to start planning your referral program. To get help, contact Perxi today.