Why do referrals work?

Everyone seems to be asking for referrals. I even get free stock if you sign up for a stock trading account with Robinhood. Social media is full of people trying to get you to click on THEIR referral link.
But why do referrals work? And why do we care?
We trust businesses that our friends trust! There are so many options out there & we are generally skeptical of advertising so we listen to friends & family.
A recent study showed 88% of consumers use online reviews to determine the quality of a business. 72% of people said they TRUST the business more if they have positive reviews. (Read more here: https://www.podium.com/article/online-reviews-guide/)
Referrals work the same way. Does your business have a referral program? Can you give away 10% to gain a new customer?
We can. Host1Help1 will give you a 10% referral kickback for any new customers you refer to us.
But the most important part of asking people for referrals is it reminds you that to earn the next customer you have to treat the current customer right & exceed their expectations.
Let’s make this Fall a period of exceeding our customer’s expectations!