What is referral marketing?

Referral marketing is a variant of recommendation marketing that companies actively initiate as part of an online marketing strategy so that the company is recommended to others.

With referral marketing, incentives or benefits are created so that existing customers, influencers or bloggers recommend the company or a specific product, for example. The advantage is that customers who have been acquired through recommendations are generally more loyal and at the same time more profitable than others.

As part of online marketing, referral marketing is used to acquire new customers who are expected to convert. At the same time, referrals increase the trust of the company, product or brand, which has a positive effect on branding and ranking. At the same time, many social signals are delivered if the referral marketing campaigns are on social networks.

Other possibilities for online referral marketing include email marketing campaigns, SEO, banner advertising, links in email signatures and influencer marketing.