What is a key advantage of implementing a referral program?

Implementing a referral program leverages the positive experiences of satisfied customers to attract new clients, which can significantly increase sales opportunities. When existing customers are happy with a product or service, their willingness to refer friends and family not only helps to grow the customer base but also enhances trust and credibility. Referrals tend to carry more weight than traditional advertising, as potential customers are more likely to listen to recommendations from people they know. This word-of-mouth marketing can lead to higher conversion rates since referrals often come with a built-in level of trust and expectation based on previous experience.

While reducing marketing costs can be an indirect effect of a successful referral program, the primary advantage lies in its ability to generate new leads through satisfied customers, making option B the most accurate representation of the benefits gained from such initiatives. The other choices address irrelevant aspects that do not directly define the key advantage of referral programs.