- suggesting the use of a certain professional, company, or broker.
- suggestion that leads to hiring a certain employee.
name of a prospective customer (or member, donor) acquired from a current customer or other third party. Most referral programs offer the customer an incentive award for referrals, particularly for referrals that become customers. For example, air travel clubs offer bonus mileage. Referrals generally respond to promotions at a much higher rate than other prospects, but the response rate decreases as the average number of referrals per customer increases. Studies show that customers who give many referrals tend to include people with little or no likelihood of interest in the product.
the act of suggesting the use of a certain broker.
Example: A broker agrees to pay a 1% referral fee to out-of-state brokers who suggest families that are moving into the area.
