Why Referral Marketing Is Important For Success Of Your Food Delivery App

Needless to say, people are now using online food delivery apps more often, and this trend will continue to grow because it ensures comfort and saves time. The majority of online delivery businesses explore multiple channels to promote their business, but referral marketing is one of the most effective ways to increase your sales and promote your services.

Customers are social animals; they trust word of mouth more than anything else. And this is the reason why the referral program is important and popular across various sectors. According to the current market survey, more than 76% of the customers choose the product or services recommended by their friends or colleagues.

So What Is Referral Marketing?

In simple terms, referral marketing means encouraging word of mouth as it motivates customers to talk about your app and brand.

When you are new to the food delivery business and want to make a solid customer base, it would be great if you deploy a white label delivery app for your restaurant that will not only transform your business but allows customers to search and order food online.

Recently, Nielsen conducted a study, and it has revealed that 90% of customers install online delivery apps that are recommended by their friends and relatives. This is because they know them. Hence, it can be said that referral marketing is a trusted way to gain more growth in your online business.

Referral Program Statistics


Here are some of the proven statistics that prove the importance of referral marketing for your online food business.

  1. 51% of customers said that their friends and colleagues are their top source for any new product or service recommendations.
  2. Shoppers believe that more than 25% of the customer trust reviews shared on social media.
  3. People like to order food that is recommended by their friends as compared to traditional advertising.

The above statistics clearly define whether you are transforming your food business or new to the online food industry; you should not ignore referral marketing.

Referral Marketing Is Cost-effective

We usually prefer to order the dish that is recommended by our closed ones. If your restaurant is recommended to someone, the referral has already tried your dishes and has done many marketing legwork for you.
Hence, this is an impressive way to generate more leads with minimum expenses. Referral marketing is time-saving and gives you maximum return on investment.

As discussed earlier, referral marketing relies on existing customers and word of mouth; eventually, your marketing cost would be decreased and boost sales. According to HubSpot, finding new customers can be rather expensive, so it would be beneficial for your food business to use existing customers who can promote your products, ultimately your marketing prices cut down.

Last Words

To summarize, there are a number of benefits referral marketing offers to your online food business; you can boost sales and make a strong customer base that helps you hit the market and enable you to target the right audience. If you execute a well-defined referral marketing strategy, it will help you generate leads and take your marketing efforts to another level.