1. Increased Customer Acquisition: Referral marketing can significantly boost your customer base by turning your existing customers into brand advocates. 2. Cost-Effectiveness: It tends to be more cost-effective than traditional advertising methods, as it leverages your current customers to attract new ones. 3. Higher Trust and Credibility: Referred customers often trust your brand more because they heard about it from someone they know. 4. Enhanced Loyalty: Offering rewards for referrals can improve customer loyalty, as people are more likely to continue supporting a brand that offers them tangible benefits.