Finding the right Referral Marketing metrics can be daunting, especially when you're busy working on your day-to-day tasks. This is why we've curated a list of examples for your inspiration.
Copy these examples into your preferred tool, or adopt Tability to ensure you remain accountable.
Find Referral Marketing metrics with AI
While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.
The percentage of your customers who refer others to your business. This is calculated by dividing the number of referred customers by the total number of customers
What good looks like for this metric: 10-30%
Ideas to improve this metric
Enhance referral incentives
Simplify the referral process
Promote the referral program frequently
Provide excellent customer service
Recognise and reward top referrers
2. Customer Acquisition Cost (CAC)
The cost associated with convincing a consumer to buy your product or service, including all marketing and sales expenses. This is calculated by dividing the total costs of acquisition by the number of new customers
What good looks like for this metric: $7-$15 per customer
Ideas to improve this metric
Optimise marketing spend
Increase organic reach
Leverage social proof
Enhance referral incentives
Use cost-effective advertising channels
3. Lifetime Value (LTV)
The predicted net profit attributed to the entire future relationship with a customer. This is calculated by multiplying the average purchase value, purchase frequency, and customer lifespan
What good looks like for this metric: $400-$500
Ideas to improve this metric
Improve customer retention strategies
Enhance product/service quality
Upsell and cross-sell effectively
Provide excellent customer service
Offer loyalty programs
4. Referral Conversion Rate
The percentage of referred leads who become paying customers. This is calculated by dividing the number of referred customers who make a purchase by the total number of referred customers
What good looks like for this metric: 10-20%
Ideas to improve this metric
Streamline referral onboarding
Offer time-limited incentives
Provide clear value proposition
Enhance user experience on landing pages
Engage referrals with follow-up communications
5. Net Promoter Score (NPS)
A measure of customer loyalty and satisfaction, calculated by asking customers how likely they are to recommend your business to others on a scale of 0-10 and subtracting the percentage of detractors from promoters
Having a plan is one thing, sticking to it is another.
Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
Tability's check-ins will save you hours and increase transparency
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