Here’s a fair question: “What kind of return can I expect from referral marketing (refer-a-friend programs) if I invest my time and energy?” As with any marketing channel, it you don’t see results, why bother? We’ll answer this question in this post.
Before we dive in, you must know, every business is different. Free, freemium, daily deals, SaaS, full-priced, apparel, charitable giving, subscription and so on have their own unique metrics, but all are capable of ROI-positive, meaningful results by generating customer referrals.
Given the disparity among business models and industry verticals, thankfully there are averages worth exploring. Below are benchmark ranges for each step of the referral marketing funnel and suggestions for optimizing each regardless of the business you’re in.
Note: Benchmarks tend to be absolute figures, we thought you’d appreciate ranges so we’ve spread the performance numbers/percentages below so you can identify how you’re doing in a broader sense.