BUSINESS ADMINISTRATION
CUSTOMER RELATION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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relationship
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word-of-mouth
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social media
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Detailed explanation-1: -Why is referral marketing so powerful? Humans are, by nature, social creatures. We naturally share our experiences with our friends. Referral marketing works because consumers trust the opinions of real people far more than they do those of the brands themselves.
Detailed explanation-2: -Referral marketing is a word-of-mouth initiative designed by a company to incentivize existing customers to introduce their family, friends and contacts to become new customers.
Detailed explanation-3: -Both referral marketing and word-of-mouth marketing use existing customers as advocates to help promote their business. However, the big difference between the two is that word-of-mouth marketing is organic; whereas, referral marketing introduces an incentive to make the outcome more repeatable.
Detailed explanation-4: -Sometimes called refer-a-friend programs, referral marketing has become a go-to method for ecommerce stores looking to grow their sales while minimizing the cost per action. By providing customers with incentives to talk about your brand, you increase the likelihood of WOM.