Referral in business is a marketing strategy in which a business encourages and incentivizes its existing customers or clients to refer new customers to them. Referrals are a powerful tool for businesses to acquire new customers as they are often more effective than traditional advertising methods.
In a referral program, the business offers a reward, such as a discount or bonus, to the referring customer for each new customer they bring in. The reward can also be extended to the new customer as an incentive to try out the business.
Referral marketing can be an effective way for businesses to grow their customer base and increase their revenue. Since the referral is coming from a trusted source, such as a friend or family member, the new customer is more likely to have a positive impression of the business and be more willing to make a purchase. Additionally, referrals tend to have a higher conversion rate and lower acquisition cost compared to other marketing channels.
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