Marketing
Referral Marketing
Definition of
Referral marketing is a marketing strategy in which businesses incentivize their existing customers or clients to refer their products or services to their friends, family, or acquaintances. This type of marketing is often referred to as word-of-mouth marketing, as it relies on the positive recommendations and reviews of satisfied customers. Referral marketing can take many forms, such as discounts, loyalty points, or exclusive offers for both the referrer and the referred. The goal of referral marketing is to increase brand awareness and customer acquisition while minimizing marketing costs. Examples of successful referral marketing campaigns include Dropbox's referral program, which offered extra storage space to users who referred their friends, and Uber's referral program, which provided discounts to both the referrer and the referred.
