Answer
May 10, 2023 - 01:21 PM
Research shows that 84% of people trust online reviews as much as they trust their friends—so a combination of your excellent reviews and a referral incentive is a very powerful strategy you can deploy for your ecommerce business to ensure cost-efficient customer acquisition.
Moreover, people who are directly referred to your brand by a known friend or family member are 4x more likely to buy from you than from your competitor.
The instant trust coming from the referral and supported by the reviews of other people. Building trust online is hard and time-consuming; so having someone we know and trust vouch for your brand is a major competitive advantage.
Finally, a referral program helps your retention efforts. Customers acquired through referrals have a 37% higher retention rate than people who are acquired through other channels.
