What is the difference between referral sales and word of mouth?
Posted: Thu Jan 23, 2025 9:00 am
After reading the concept, you might be wondering: is referral sales the same as word of mouth?
They are not. Word of mouth happens naturally, without any encouragement from the company. It is about satisfied customers who organically recommend your products and services to their acquaintances.
On the other hand, referral sales are a structured strategy in which the company uses programs that allow it to obtain constant recommendations from customers.
What are the benefits of referral sales?
With a well-structured and planned referral program, people who have gone through the referral filter can arrive better prepared for the sale.
Take a look at the benefits of investing in referral sales:
Reduced Customer Acquisition Cost (CAC): When a company focuses on referral estonia whatsapp resource sales, it can speed up the sales cycle, which in turn contributes to reducing CAC .
Customer retention: Your customers are aware of your company's offerings and service. Based on this, they can recommend customers who will benefit from your products and services. This makes it easier to satisfy them and increase their retention.
Increased conversion rate: When we receive a recommendation from someone we trust, the possibility of purchasing is higher. That's why creating a referral program also has the potential to increase your conversion rate .
And the best thing is that, while it is an excellent option for B2B companies that make complex sales, referral sales can be used in any market segment. In the next point, you will understand how to do it in practice.
They are not. Word of mouth happens naturally, without any encouragement from the company. It is about satisfied customers who organically recommend your products and services to their acquaintances.
On the other hand, referral sales are a structured strategy in which the company uses programs that allow it to obtain constant recommendations from customers.
What are the benefits of referral sales?
With a well-structured and planned referral program, people who have gone through the referral filter can arrive better prepared for the sale.
Take a look at the benefits of investing in referral sales:
Reduced Customer Acquisition Cost (CAC): When a company focuses on referral estonia whatsapp resource sales, it can speed up the sales cycle, which in turn contributes to reducing CAC .
Customer retention: Your customers are aware of your company's offerings and service. Based on this, they can recommend customers who will benefit from your products and services. This makes it easier to satisfy them and increase their retention.
Increased conversion rate: When we receive a recommendation from someone we trust, the possibility of purchasing is higher. That's why creating a referral program also has the potential to increase your conversion rate .
And the best thing is that, while it is an excellent option for B2B companies that make complex sales, referral sales can be used in any market segment. In the next point, you will understand how to do it in practice.