Did you know that Leesa, a significant player in the mattress industry, attributes 33% of their revenue to referrals?1 This figure underscores the immense potential of referrals in driving sales and cutting down on customer acquisition costs. In this article, we will delve into the impact of referrals on business revenue and how you can glean insights from Leesa's success.
While we may only want to emulate Leesa partially, there are valuable lessons to be learned from their approach. Leesa's success underscores the value of a well-executed referral program. An additional 33% in revenue is an opportunity no business should overlook.
Despite the potential for tremendous growth through referrals, it is unfortunate that many businesses either do not have referral programs in place or, when they do, these programs prove ineffective.
Consider the consequences of not having a robust referral program in place. Instead of one satisfied customer referring four more, those four could turn away potential sales and share their negative experiences with eight others. The negative impact on your business can be substantial.
The First Step to a Successful Referral Program
To harness the positive effects of a great referral program, businesses often take the first critical step: creating a customer experience that motivates customers to refer others. This may sound simple, but many companies provide only average experiences at best, which limits the potential for extraordinary results and referrals.
Referrals can either have a profoundly positive or a detrimental effect on your business, and the choice is yours. Leesa's success is a testament to the potential of effective referral programs to drive revenue and reduce customer acquisition costs.
By studying the strategies employed by successful businesses and implementing a well-thought-out referral program, you can empower your business to thrive in the competitive market.
Are you interested in taking the first step?
Schedule a demonstration with one of our Sleep Improvement experts today.
- Extole. (2018). 4 Reasons Your Referral Program Doesn't Work. Extole Blog. https://www.extole.com/blog/4-reasons-your-referral-program-doesnt-work/