52 Percent of Referred Customers Who Will Convert Do So Within 24 Hours of Initial Referral, Per Referral Marketing Campaign Data from Extole

Extole data, from a sample of the referral marketing platform’s customer campaigns, highlights the immediate impact of referral marketing on customer acquisition and revenue

SAN FRANCISCO--()--Extole, the leading referral marketing platform, today announced results of an internal analysis of the campaigns of their retail customers that showed the majority (52 percent) of customers who convert from a referral do so within 24 hours of the initial share. The data further shows an additional 13 percent of referral conversions happen between Day 2 and Day 7 after the initial share. Extole’s platform enables the easy referral of a given brand or product by advocates to their friends. These shares commonly occur via email and social platforms and drive an immediate, significant impact on both customer acquisition and revenue. Referred customers, per Extole’s data, have a 25 percent higher lifetime value, and have a 3x higher conversion rate than non-referred new customers.

“It’s not a mystery why referrals convert new customers with such speed. They cut through the brand noise consumers hear each day. With a referral program, brands can encourage trusted recommendations between friends, delivering a valuable incentive of their choosing as well as the instant gratification of reaping that benefit - be it a discount, point value, free shipping, or gift with purchase,” said Matt Roche, CEO and Founder, Extole. “What’s eye-opening for brands is not only the speed with which referrals convert but also that these customers are more loyal, more valuable over time, and more likely to refer in additional new customers themselves. It’s a win-win for any brands looking for new customers, but it also delivers long-term value and loyalty.”

As retailers have been hurt by the demise of in-store impulse shopping thanks to rise of ecommerce and mobile, strategies to elicit online impulse purchases are actively sought. In January 2016, CreditCards.com released a study that stated 77 percent of respondents had made an impulse purchase in the last three months, with 79 percent of those being made in-store. The impulse purchases, however, are no longer mere packs of gum, with the same report stating that 54 percent of respondent have spent over $100 on an impulse purchase. Exploring how this consumer behavior can be driven online, Business Insider cited a 2011 study by researchers at the University of Amsterdam Business School that stated, “the number one factor in triggering impulse shopping online is a calm, friendly, and knowledgeable website with attractive merchandise,” ease-of-experience, instant gratification, and incentives also playing direct roles in shortening the time to conversion.

About Extole
Extole helps marketers acquire more customers and better customers at scale with its referral marketing platform. With Extole’s turnkey SaaS platform, marketers create a complete, efficient, and reliable acquisition channel by encouraging their customers to refer new customers on site, in app, and offline. Focused on creating the most advocates from existing customers, Extole powers refer-a-friend programs for Vistaprint, Advance Auto Parts, Lands’ End, Petco, Shutterfly, Sears and more.

To learn more, visit www.extole.com.

Contacts

Media Contact:
Extole
Kate Gundry, 617-797-5174
extole@pluckpr.com

Contacts

Media Contact:
Extole
Kate Gundry, 617-797-5174
extole@pluckpr.com