Well according to some marketing surveys (recently done in America) the short answer is YES:
- 80% of all B2C and B2B purchases involved some form of word of mouth recommendation
- 49% of consumers say friends and family are their top sources of brand awareness
- 65% of social media users learn about brands, products and services through social networks.
- 65% of new business comes from family and friend referrals
The good news in relation to the above is that “refer a friend” marketing activities definitely work for the seller BUT do you work for the consumer?
If you look at my own situation. I am a real stickler for having a green energy supply to my home so I always try and go with a 100% renewable energy suppliers. Today I am supplied by a company called Pure Planet. Now anyone could use the link I have embedded here to link through to Pure Planet and switch their energy supply which would be great as they would be encouraging people to turn green (which is our mission in life). However, could you the reader benefit further by being my friend?
Well if you used my “refer a friend” link you would will not only be able to switch your supply to a green energy supplier who may save you money (do a comparison first and see if this is the case) but you will get a £50 Amazon Voucher for your troubles (simply from being my friend). The good news is that not only do you get a £50 Voucher but I will also get an Amazon Voucher (£25) for you joining our green energy club. Great news for all.
The interesting thing is that when I did a comparison to see if it was worth switching away from Pure Planet the result was that I could save £10 by moving to another supplier. However, if I encourage friends and family to switch to Pure Planet then I am far better off getting my £25 and staying where I am.
SO the answer is YES “refer a friend” does offer a benefit to everyone in the supply chain. Also if you do exactly the same thing i.e. refer a friend in the future, you will likely see that it makes complete sense to “refer a friend” rather than switching to another energy supplier.
So friend if you want to switch and save yourself money, reduce your impact on the planet and at the same time get a voucher to use on Amazon then go on treat yourself and “refer a friend“.