What is referral marketing?

Most marketing professionals and e-commerce merchants know about word-of-mouth, i.e. when customers tell their friends about products and services. It is famous for being one of the most powerful forms of marketing, the only problem is that it doesn't happen often enough! Referral marketing is, to put it simply, making a conscious and structured effort to make word-of-mouth happen much more often.

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Engage your customers

As mentioned earlier, referral marketing is simply making conscious marketing efforts to get our customers to talk about and recommend a business, product or service to their friends.

If we don't make this effort then referral marketing or word-of-mouth will happen anyway. Your customers will always share both positive and negative experiences of your business with their friends.

The challenge is that the positive marketing doesn't happen often enough if we just wait for it to happen organically! The likelihood that a dissatisfied customer shares their experience is about 10 times greater than that of a satisfied customer doing the same, if we don't help the satisfied customers out.

In other words, referral marketing is about consciously encouraging the satisfied customers to tell their friends why they should choose you!

Why referral marketing is so powerful

We are social creatures, so it is only natural that we instinctively share our experiences with the ones closest to us. We advise our friends and family by sharing our positive experiences, but also warning them of negative experiences. Here's the catch! These recommendations affect us much more than other marketing messages. It is quite logical, we rely more on our friends than we trust advertisement, paid expert opinions and similar media!

There are plenty of studies that confirm this:


trust (2)
We trust our loved ones
83% of consumers trust recommendations from people they know. A potential customer is 4x more likely to convert to order if they've been recommended by a friend.

- Nielsen
Sharing is caring
49% of consumers state that friends and family are their primary source of brand awareness. The more your customers talk about your products or services, the greater your reach becomes.

- Forbes
Your best customers
People who become customers thanks to friend recommendations are 18% more loyal, spend 13.2% more and have 16% higher Life Time Value than other customers.
- Journal of Marketing

The Win-Win-Win Effect

So, we have a natural instinct to share our experiences as well as listen to tips, advice and recommendations from friends and loved ones. Making a recommendation to a friend is a source of confirmation and social status, but that is often not enough to make a customer take the final steps of becoming an ambassador.

This is where Redeal comes in. Through our expert knowledge of referral marketing and many years of experience we have developed a unique service that makes it easy for you to incentivize your customers to recommend your business to their friends, maximizing the benefit of word-of-mouth for your business!

What's in it for me?


Activate those who love your brand

Do you want to know how to increase sales by turning your best customers into brand ambassadors? There are many flexible and functional solutions that want to work with personal friend recommendations. This guide is a quick start guide to Referral Marketing and how you can apply it to grow your business!

Read entire guide


Get more customers through personalized e-commerce

Do you need help to get started with the personalization of your e-commerce? Then we have the guide for you! This guide teaches you how to mine your customer data and lets you use the insights to increase conversion (and thereby revenue) of your e-commerce.

Read entire guide


Increasing your e-commerce sales

Are you thinking about which strategy is the most efficient to increase conversion for your business? I a jungle of choices, it can be tricky to know whether to invest in influencers, personalization or a broader product range. This guide will give you valuable tips on tools and strategies for increasing your sales!

Read entire guide

Quotes from our customers


Jojje Borsén

Vitamin Manager

"Redeal is a powerful tool that works really well for our business. With a few simple commands we can launch new offers and deals for our customers to share with their friends. A simple and easy-to-use interface for creating referral offers, useful statistics for following up and a great customer success team that are always helpful when we need them. We are very happy with Redeal and I can really recommend working with them!"


Mårten Åkeson


"Redeal is a growth company - just like us - which means they grow fast and can keep up with our pace. They understand the importance of developing and driving a company forward. On several occasions they have provided advice on how we can use their service (for example in which channels) and helped us make the right decision!"

Read case
Moon-Suck Song

Moon-Suck Song

Panagora Room AB

"At the end of the day it's all about building trust. I wouldn't recommend a friend to shop with a merchant that I didn't think was relevant or good, for example. When you give someone a personal recommendation you do it to create value and share the joy of shopping. Redeal makes it easy for customers to share this experience with eachother."

Read case

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