Referral marketing made its mark on the web thanks to high-profile growth hacking successes. Dropbox’s $10 billion empire was built almost entirely on its “give us a customer, get free space” promotion, while Airbnb used personalized referral messages (among other tactics) to drive its current $20-$25 billion valuation.
Despite these clear successes, referral marketing hasn’t yet achieved the same level of excitement as other growth strategies. According to 2010 data from the Wharton School of Business, only 30% of companies surveyed had a formalized referral program, despite the fact that those that did experienced 86% more revenue growth over a two-year period.
Has anything changed since 2010’s dismal adoption statistics? Are more retailers using referral marketing, or are those who have implemented these programs seeing measurable success? To answer these and other questions, the team at Web Profits reached out to thousands of companies as part of their “2017 State of Referral Marketing” report. See the full article by Web Profits here.
At RewardStream, we visually represented the data in an infographic below.