Referral Marketing Software Market Trends and Drivers: Revenue is Prospected to Hit $1253.09 Million by 2029

Global Referral Marketing Software Market Overview

According to Global Market Monitor, the global referral marketing software market size is expected to grow to $1253.09 million by 2029 with a CAGR of 11.37% from 2024 to 2029.Referral marketing or customer advocacy marketing is marketing that harnesses the voice of happy customers to market to prospects. A referral software or referral marketing software is a deliberate, systematic way of getting people to make referrals to your business, that helps you design, manage, and optimize successful customer referral campaigns.

The company needs to keep growing and it must retain customers. By continuously reducing subscriber/customer turnover, you can increase revenue. Referral marketing results in higher customer loyalty and a lower chance of churn. Studies show that compared to recommendations without rewards, the turnover of rewarded recommendations is much lower. In addition, the referral rate is 18% lower than other types of customers. Recommended customer retention is not only higher but also more flexible. Referral marketing can bring more loyal customers to the company, which makes it an ideal marketing technology for the subscription industry.

Referred customers have higher customer life cycle value (CLV)

Compared with consumers obtained through other channels, the lifetime value of recommended consumers is 16% higher. Referred customers have high value for subscription services due to their low cost, high engagement, and many repeat purchases. When your customers share your brand, they are thinking about knowing who will like your product or service. Ultimately, referral marketing will greatly help your subscription business.

Overall, referrals are 25% more valuable than non-referrals. Referral marketing can also help companies grow revenue by 86% in two years. Customer referral marketing is an extraordinary strategy for subscription companies, especially since only 30% of companies today are using referral marketing. As recommended customers are cheaper to obtain, more loyal, and have a higher lifetime value, the demand for referral marketing software is expected to continue to increase in the coming years.

Market Trends

With paid advertising becoming more expensive and less effective, trade shows and events are less attractive (partly because there are more shows and events, so it's difficult to determine if any of them will bring a sufficiently high ROI to justify Reasonable cost) and traditional PR is becoming an inefficient way to disseminate information and products to the masses. The effectiveness of many tools in traditional marketing toolboxes is declining. Almost all of these institutions require huge investments and a difficult path to ROI. For referral marketing, the opposite is true, which makes it an attractive option for attracting a large number of qualified leads and eye-opening ROI numbers. Studies have shown that referral customers have higher life cycle value (LTV), lower attrition rates, and higher average order value (AOV). Referral marketing involves promoting your product or service by using recommendations from an existing customer base. Unlike most types of marketing, the use of professional referral marketing software tools simplifies the workload by automating the process. With the development of 5G, AI, and the Internet of Things, marketers will also tend to use referral marketing software, which brings important development opportunities to the referral marketing software industry.

By Type	Cloud-based
	On-Premises
	The cloud-based segment contributes the largest market share.
By Application	Small Businesses
	Mid-size Businesses
	Large Enterprises
	The largest segment by application is the mid-size businesses.