I previously wrote an article with 30 Referral Stats to Blow Your Mind. Now I'm back with 17 more! Why, you may ask?

Because only 30% of companies have a formalized referral program, despite the fact that those that did experienced 86% more revenue growth over a two-year period. With the ever-growing focus on SEO, PPC, social media and other digital marketing efforts, referrals have been put on the back burner. The out-dated methods for promoting and capturing referrals in most dealerships have hindered referral optimization…until now.

“The purpose of a business is to create a customer who creates customers." - Shiv Singh - Visa Senior Vice President Innovation & Strategic Partnerships

Dealerships can start driving more revenue when they take some time to really refocus on their referral marketing strategies. Here are some facts that will get you ready to start re-working on your referral strategy today!

1. Referrals have a 25% higher lifetime value (LTV). - DMA and Forrester
    
2.  Referral marketing channels are helpful for facilitating at least four of Dr. Robert Cialdini’s six “weapons of influence” from his seminal marketing book “Influence: The Psychology of Persuasion,” including reciprocation, social proof, liking, and authority. This makes referral marketing a powerfully influential way to promote your business.
    
3. Referrals have a 20% higher average order value (AOV) each year. - DMA and Forrester
    
4. Referrals between four and five times more likely to refer additional new customers.  - DMA and Forrester
    
5. Customers are on-the-go. 80% of Incentivefox referral leads are submitted through the dealer's mobile app.  - Incentivefox Referral Rewards Program
    
6. 82% of Americans seek recommendations from friends and family when considering a purchase. - Nielsen
    
7. 88% of Americans say they would like some sort of incentive for sharing a product. That number jumps to 95% among 18-to-34-year-olds. - Harris Poll
    
8. Employee referrals rock too - Referral programs can save organizations $3,000 or more per hire.
    
9. The survey goes on to reveal that 77% of Americans identify money as their reward of choice. - Harris Poll
    
10. New hires sourced via referral programs produce 25 percent more profit for their companies than new hires sourced via other means.
     
11. Word of mouth drives $6 trillion of annual consumer spending. - CMO
     
12.  83% of consumers are willing to refer after a positive experience but only 29% do. Why? No clear and simple process for submitting referrals.  - Nielsen
     
13. 84% of B2B decision makers start the buying process with a referral. - Heinz Marketing
     
14. Referrals are 18% less likely to churn - DMA and Forrester
     
15. Referrals have a 15 point–higher average net promoter score (NPS) -  DMA and Forrester
     
16. Of companies surveyed with referral programs, 75% say referrals are their lowest-cost method of acquiring new customers. That number jumps to 82% among those who are using a SaaS-based referral marketing system like Incentivefox. - Web Profits Survey
     
17. Of the same survey, 78% of respondents with an established referral program say that customers acquired through the program are more loyal than other customers - Web Profits Survey

What did you think? Are you surprised by any of these stats? If you're unsure where to start on building your own referral program you can download free eBooks with referral hints, tips, and best practices and to start you off right... and here are the top 4 most important aspects of a successful referral program:

1. Easy-to-understand rules 
2. Appropriate benefits and rewards for both the referrer and the referee
3. Simple sign-up/submit methods
4. Fast reward payout