What is Referral Marketing?
Referral marketing is the practice of advertising items or services to new clients via word-of-mouth referrals. It’s a comprehensive approach for motivating loyal consumers and brand champions to refer their friends and family to your company.
Such referrals are frequently made on the spur of the moment, but firms can influence this through the use of proper techniques.
Although referral marketing and word-of-mouth marketing appear to be similar, they are not. Referral marketing differs from word-of-mouth marketing in that it is more “planned.”
A company starts a referral marketing campaign on purpose. Referral marketing encourages customers to inform their friends about their experiences with the brand.
Word-of-mouth marketing is more natural, as it is generally initiated by delighted customers rather than by a brand’s explicit effort.