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Lessons from an Experiment on Boosting Customer Referrals

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?

New research suggests that companies can increase referral rates by making customers more aware of their personal engagement with the brand and by targeting referral campaigns to their most engaged customers. Not only does this increase referral rates, it increases future engagement and strengthens customer relationships over time.