Referral Marketing Benchmark Report - 2014

Resource Overview

In a November 2014 study sponsored by RewardStream, Demand Metric conducted a survey to find about the current state of referral marketing. The study’s goal was to understand the interest in and success with referral marketing, gaining insights from which to derive best practices.

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Introduction

Any sales representative, demand generation manager or marketer will acknowledge that the very best source of highly qualified leads come from referrals. Having customers that become advocates by referring prospects is perhaps the highest form of praise for a vendor.

Customers who refer prospects do so because they have confidence in the vendor and its solution. That customer also trusts that the vendor will take good care of the referred prospect and therefore not cause any reputational damage to the referrer. The act of referring represents that the big pieces of the value equation are in place and working for the customer who refers, and as such, a referral provides extraordinary validation for the vendor, and tremendous credibility with the prospect.

Given the fact that referrals occupy the top of the qualified lead pyramid, it is a bit surprising that so many companies simply allow referrals to evolve and occur organically. This is probably the result of a perspective about referrals that they can only occur this way, that they’re already occurring at the greatest possible frequency, or that they are simply a force of nature that defies management. So while every sales representative, demand generation manager or marketer longs for referrals – the most effective method of acquiring new customers – slightly over half of organizations in this study have a referral program in place.

In a study sponsored by RewardStream, Demand Metric conducted a survey to find about the current state of referral marketing. The study’s goal was to understand the interest in and success with referral marketing, gaining insights from which to derive best practices.

Table of Contents

  1. Introduction
  2. Executive Summary
  3. The State of Referral Marketing
  4. Acquiring New Customers
  5. Methods of Acquiring New Customers
  6. Rewarding New Customers
  7. Referral Program Performance
  8. Referral Marketing Challenges
  9. Barriers to Program Implementation
  10. Analyst Bottom Line
  11. Acknowledgements

  12. About RewardStream
  13. About Demand Metric
  14. Appendix - Survey Background

 

Research Methodology

This Demand Metric Benchmark Study survey was administered online during the period of October 4, 2014 through October 22, 2014. During this period, 302 responses were collected, 215 of which were complete enough for inclusion in the analysis. The data was analyzed using SPSS to ensure the statistical validity of the findings. The representativeness of these results depends on the similarity of the sample to environments in which this survey data is used for comparison or guidance.