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Boosting Referrals by Boosting Engagement: Lessons from a Field Experiment

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Companies love referrals. When loyal customers recommend a product or service to their friends and family, it reduces the cost of acquiring customers and increases the likelihood that new customers will value what the company has to offer. But how can companies get their customers to make more referrals?

We found that:

  • Engaged customers refer more
  • Referral campaigns are more effective when they highlight a customer’s existing engagement
  • When customers refer others to the brand, their own engagement increases