What does referral marketing encourage existing customers to do?

Referral marketing is a strategy designed to harness the influence of satisfied customers to attract new business. It incentivizes existing customers to recommend a product or service to their friends, family, or colleagues in exchange for rewards or benefits. This creates a win-win situation where both the referrer and the new customer receive advantages from participating in the referral program, such as discounts, gift cards, or other incentives.

This approach is particularly effective because it capitalizes on the trust factor; people are more likely to purchase a product or service based on recommendations from someone they know rather than traditional advertising. Referral marketing leverages the customer’s positive experience, encouraging them to share it and potentially expand the customer base.

The other options do not capture the essence of referral marketing. Ignoring marketing messages does not involve any engagement, and encouraging customers to buy more products without promotions doesn’t involve referrals. Engaging with social media influencers is a different marketing strategy focused on influencer partnerships rather than leveraging existing customer relationships for referrals.