Do you ask for Referrals?

Referrals Have the Highest Conversion Rates of all Customer Acquisition Channels at 3.74%

Statistic Info

Consider Koodo’s referral programme. They were able to reduce their customer acquisition cost by 167% and got 75,000 new customers within two years. Their success speaks for itself. Here is another encouraging stat – referred customers bring profits as high as 25%! Perhaps, you should give referral apps like ReferralCandy a shot? Or, if budget permits you could hire specialists.

  • Referral: The power of “word of mouth”. Bah, I guess that old cliché saying was right. Referral is by far the highest acquisition channel for conversion rate (almost 4x the average.) In fact, some of the largest, fastest adoptions (Gmail, Dropbox, Zappos) can be credited directly to “word of mouth”. Takeaway? Build a great product, build a great experience, tell the world, ask your customers to tell the world (maybe even reward them)—and you’ll profit.
  • Inbound: Content is king. As Bill Gates predicted in an article written in 1996: “Content is where I expect much of the real money will be made on the internet”. Almost 20 years later, this couldn’t be more true, especially in the digital marketing era where choice of content is in the hands of the consumer. Imagine a popup ad (outbound) versus a funny infographic you chose to look at (inbound). Data clearly shows that people who choose to interact with your brand naturally convert higher (28% more than paid marketing). What are your doing to build content to support your customer’s journey? Not sure? Well, for one, it’s time to take a cue from me and start writing those awesome blogs!
  • Prospecting: Mining for leads. This one is a bit surprising. Leads sourced from prospecting convert at a third of overall average. But this goes to show you how old-fashioned prospecting such as door-to-door or cold calling just doesn’t work well compared to other sources. It isn’t uncommon these days for me to hear about companies with 60-80% of their leads sourced from marketing. It’s much more efficient to have sales do what they do best: selling, not cold calling.
  • Email and Nurture: Emails have the lowest conversion rate. Wait…what?! Don’t fire your email marketing team. This is showing conversion by acquisition channel, which means if your lead source came from emails and nurture, you’re doing something wrong, or you’re just desperate, or…you’re a spammer (which also explains the bad conversion rate). And as we’ll see in an upcoming Marketo Institute blog, emails and nurture both have amazing ROI for multi-touch attribution after you’ve acquired the lead.

More 2017 Stats

68% of Small Businesses Don’t have a Documented CRO Strategy

Marketers are Now Experimenting with Buyer Engagement through Formats other than Form Fills: Video (66%)

Imagescape Saw a 160% Increase in Submissions When They Decreased Form Fields from 11 to a Mere Four

There Were 1.66 Billion Global Digital Buyers in 2017

Only 19% of Marketers Said They Are Currently using AI-Powered Applications Today, but 36% of Marketers Said They Are Planning to Deploy Them as Part of their Martech Stack in the next 12 Months

Organizations With Revenues Under $500 Million Have a Mean Cost Per Lead of Roughly $180; Companies With Revenues Above $500 Million Spend More Than Double That, at Roughly $430 Per Lead

Only About 22 Percent of Businesses are Satisfied with their Conversion Rates

Most Companies Spend Less than 5% of Marketing Budgets on Conversion Optimization

Marketers are Now Experimenting with Buyer Engagement through Formats other than Form Fills: Thought Leadership (65%)

Cost Per Lead Ranges from $150 to $350 on Average, with Larger Companies Paying Higher Costs Per Lead

More Conversion Optimization Stats

44% of Companies use A/B or Split Testing Software

People are Searching Google for the Phrase “Conversion Rate Optimization” More than Ever Before

61% of Companies Run Five or Fewer Landing Page Tests Per Month

Imagescape Saw a 160% Increase in Submissions When They Decreased Form Fields from 11 to a Mere Four

Personalized Call-To-Actions Convert 42% More Visitors into Leads than Generic CTAs

The Average Landing Page Form with 2 Form Fields has Higher Conversions then 1 Form Field

Pages that Rank First on Google Search Results on Desktop have a 34.36% Click-Through Rate

Only About 22 Percent of Businesses are Satisfied with their Conversion Rates

Businesses with over 40 Landing Pages Generated a Whopping 12 Times More Leads than those with 1-5 Landing Pages

Only .25% of PPC Landing Pages Have a Video