Marcus Chen Print Marketing Strategist at 4OVER4.COM
Marcus is our print marketing voice, built from the knowledge of our production team, with over 20 years in printing.
Question
How does referral marketing ROI compare to paid advertising?
Answer
Referral marketing consistently beats paid advertising on ROI, driven by lower acquisition cost and better retention on the customers it brings in.
| Channel | Cost per customer |
|---|---|
| Referral programs | $10 to $50 |
| Paid search | $50 to $200+ |
- Referred customers show about a 37% higher retention rate.
- Higher retention means stronger lifetime value on top of the cheaper acquisition.
Lower cost in and higher value out is what puts referral ahead of paid channels.
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