In comparison to other channels, the conversion rate of leads gained through personal recommendations is much higher. Your costs will go down as well, thanks to the lower CPA you’ll see from customers you acquire through referrals.
The LTV of such clients is 16% higher due to the higher retention rates they bring in. Experts in sales who use referral programmes see a four- to sixfold increase in pay.
Originally, Uber was a service that connected people who needed rides together with drivers. To broaden their customer base and exposure, they turned to referral marketing. The concept was straightforward: users would earn $5 credits whenever a friend made use of the referral code they provided. As a result of its immense popularity, this concept has been adopted by virtually every taxi app since.