THE INFLUENCE OF REFERRAL MARKETING ON CUSTOMER RETENTION A STUDY OF SMALL SCALE RETAIL BUSINESSES IN BAUCHI
Abstract
This study investigates the influence of referral marketing on customer retention among small-scale retail businesses in Bauchi. Referral marketing, which involves encouraging existing customers to recommend products or services to others, has become a cost-effective strategy for small businesses seeking sustainable growth. The study adopted a quantitative survey research design using structured questionnaires distributed to customers of selected small-scale retail businesses in Bauchi. Data collected were analyzed using descriptive statistics and regression analysis to determine the relationship between referral marketing and customer retention. The findings reveal that referral marketing significantly enhances customer trust, satisfaction, and repeat patronage. The study concludes that effective referral strategies positively influence customer retention and long-term business performance. It recommends that small-scale retail businesses should develop structured referral programs to strengthen customer loyalty.
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