Read time: 3 mins
We're putting letters under the microscope, taking a deeper dive into exactly what they mean for your referral programme.
And where better to start than A?
In the referral alphabet, A stands for Acquisition. Read on to find out why referral is the key to quality acquisition in 2025.
Acquisition problems in 2025
You don’t need us to remind you how hard it is to acquire high-value customers in 2025.
While the rising costs of digital advertising channels like paid search and social are beginning to slow down, they’re still too costly to be considered truly sustainable growth drivers.
And these expensive channels aren’t paying off like you need them to, as consumers become increasingly distrusting of digital ads.
In fact, research from Hubspot shows a mammoth 75% of consumers don’t trust paid advertisements.
So, you’re spending more, but seeing fewer new customers coming through the door. Clearly, something’s got to give.
Fortunately, there is a way to market to your target consumers in a way that builds trust without busting your budget.
Why referral is key to quality acquisition
There are many reasons why referral drives quality acquisition — it's trustworthy and encourages customers to bring their friends. This referral cycle can foster long-term growth at a fraction of the cost of using paid ads alone. Here are two key benefits:
Trusted by consumers
40% of consumers trust referral more than any other marketing channel. But why?
Picture this: you fancy brightening up your smile, so you’re on the lookout for a brilliant whitening treatment.
Who are you most likely to trust: the first paid ad you see on Google, or your work friend Shannon, who’s got the pearliest whites you’ve ever seen?
The truth of the matter is, we’ll never trust an ad as much as we trust someone we know who can tell us (or show us) the fantastic experience they’ve had with a brand.
Fortunately, you can build this all-important trust in a startlingly simple way: encouraging your customers to recommend your brand to others.
An optimised referral marketing programme can increase new customer acquisition by up to 30%
Unlocks a treasure trove of new consumers
Referral platforms encourage your brand fans to shout about your brand to others, your brand’s message will reach customers who might never have seen your paid ads otherwise.
And thanks to the high levels of trust associated with these recommendations, they make a major impact.
When a consumer hears about you from someone they trust, they’re predisposed to liking your brand themselves — and heading to the checkout.
If you’re leveraging and tracking this trust through a strategic referral programme, you’ll soon start to welcome a steady stream of customers itching to refer you onwards.
That’s right. The customers who act on their friend’s recommendation are 5x more likely to recommend you to others. And with each of these customers spending an average of 11% more on their first order, that’s a seriously powerful network of high-value customers you’ll grow through advocacy.
But when it comes to the transformative power of customer advocacy for your business, acquisition is just the start (in the case of our A-Z, literally).
Ready to drive quality acquisition through a channel your customers trust most? Get a free demo today to find out why we're the world's best AI-powered referral platform.
