A referral program is a word-of-mouth marketing tactic that encourages customers to advocate on behalf of your brand. Rather than writing reviews online, or submitting customer feedback surveys, referral programs let customers share their brand experience with partners, colleagues, and friends.
The purpose of a referral program is to attract new leads to your business. But, you're not just bringing in anyone. By asking customers to think about people who would benefit from your product or service, they'll refer leads that are a good fit for your brand.
This only makes it easier for your marketing and sales teams to nurture and engage customers because not only are these leads a good match for your business, but they're also familiar with your company and its reputation. Since they've been referred by someone they know, they have a reliable resource telling them that your company is trustworthy and produces a positive customer experience.