Word-of-mouth marketing programs are effective in both the short and long term, showing up to a 60% return on investment, according to an academic study.
Word-of-mouth referral programs bring new customers in cheaply, and those customers prove more loyal, according to researchers from the Wharton School at the University of Pennsylvania and Goethe University in Frankfurt, Germany. The researchers studied the long-term value of customers gained by a German bank that gave customers a 25-Euro bonus for each referral. The researchers....