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Every SaaS business should have a referral marketing strategy. When you actually have a referral marketing strategy, you can outperform your competitors in a completely unfair way. In this episode, we are going to dig into the big question of why referral marketing is so powerful and why so many SaaS leaders and marketers completely ignore it.
Principle 1: Higher Win Rates
The referrals that come in from a referral marketing program actually close at higher win rates. When someone gets referred into your product or your business, those referrals, those people that got referred in by someone they trust, they close at nearly a 4X more win rate. Meaning you can actually increase your win rates across the board when you start to institute a referral marketing strategy.
Principle 2: Higher LTV and Lower Churn
Your LTV is higher and your churn is lower for the customers that you convert through referral marketing. The lifetime value of a customer that got referred in turns out to be 16% higher. And on top of that, not only are they going to win at a higher rate, but they will also stick around longer, pay more, and buy more. The churn is also lower, 18% lower churn when it comes to referred customers.
Principle 3: Building a Successful Referral Marketing Program
The third principle you need to know is building a successful referral marketing program. Referral marketing may seem simple, but it's not easy. If you do it right, it gives you an unfair advantage. It helps you get better customers, gets that word of mouth going, and gets that halo effect. Amazing things come together.
Are you starting to see the power in this? Referral marketing is the next phase and the evolution of B2B marketing. It's an unfair advantage because not everyone knows how to do it well. But if you do it, if you do it right, it gives you an unfair advantage. It helps you get better customers, gets that word of mouth going, and gets that halo effect. Amazing things come together.
And best of all… Megaphone helps you launch your Referral Marketing program within a 1-week. Schedule a demo with us to see how.
