Meaning of Referral Marketing

Simple definition

Referral marketing is a strategy where businesses encourage customers to refer new customers by offering incentives, such as discounts or rewards, for successful referrals.

How to use Referral Marketing in a professional context

Referral marketing is widely used to leverage existing customers as brand advocates, helping businesses gain trust and expand their customer base at a lower cost.

Concrete example of Referral Marketing

A customer refers a friend to an online store and receives a 10% discount on their next purchase once the friend makes a purchase.