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

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

Marketers are Now Experimenting with Buyer Engagement through Formats other than Form Fills: Infographics (59%)

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

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

46% of Marketers are Using Interactive Content, with the Top Reason for Moving to Interactive Being Better Engagement Around Demand Gen Efforts

54% of B2B Marketers Measure Success Via Revenue-Based Quotas, While 45% Measure Success Through Lead-Based Quotas

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

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

The Average Conversion Rate of Visitors Who Saw User Generated Content (UGC) is 161% Higher Than Those Who Didn’t

55.5% of Respondents Planned on Upping their CRO Budgets in the Coming Year

More Conversion Optimization Stats

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

Landing Pages with Multiple Offers get 266% Fewer Leads than Single Offer Pages

For Every $92 Spent Acquiring Customers, only $1 is Spent Converting Them

7 Top Converting Companies Spend More than 5% of their Budgets on Optimization

Companies see a 55% Increase in Leads when Increasing their Number of Landing Pages from 10 to 15

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

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

A Typical Website Conversion Rate is about 2.35% on Average

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

8 out of 10 or 82% of Marketers Say Knowing How to Test Effectively is “Somewhat” or “Very Challenging”