The Referred Customer Advantage

The chart lines up four bars comparing a referred customer to a non-referred baseline. They spend about 16% more over their lifetime, come back 18% more often, and close two to three times better than paid ads. The last bar towers over the rest on a stretched scale: referred people act on a friend's recommendation 86% of the time versus 2%, about 43 times the baseline. That last gap is why each referred customer is also a likely source of the next referral.