A referral is a recommendation to someone to seek services or products from a specific person or business. This often occurs in professional settings, where one individual suggests another to a service provider, such as a doctor or a lawyer. Referrals can help build trust and credibility, as they come from someone who has had a positive experience.
In marketing, referrals are a powerful tool for businesses. Companies often encourage satisfied customers to refer friends or family, sometimes offering incentives like discounts or rewards. This strategy leverages personal networks to attract new clients, making it a cost-effective way to grow a customer base.