Here’s how members of our Metro Atlanta Business to Business Trade Network obtain new business:
Barter members become friends, and, in exchanging business transactions, a bonding occurs, loyalties emerge, and referrals exchange, as, people like to do business with people they know and like. A key study on referral programs by Philipp Schmitt, PhD marketing student, and professors of marketing, Bernd Skiera and Christophe Van den Bulte, at Goethe University in Frankfurt, Germany, found promising results for business owners. The study notes, "Tracking approximately 10,000 customers of a leading German bank for almost three years, we find that referred customers (i) have a higher contribution margin, though this difference erodes over time, (ii) have a higher retention rate, and this difference persists over time, and (iii) are more valuable both in the short and long run." The study also concluded that the average value of a referred customer is at least 16 percent higher than that of a non-referred customer with similar demographics.