% of new customers from referrals. The Referral Rate Calculator takes new customers in the period, new customers who came through referrals and returns referral rate plus customers from other channels. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Marketing metrics are most useful as trends and comparisons between channels. Measure every campaign the same way, over the same period, and judge it against your gross margin rather than against revenue alone. Use the worked example below to check the maths against your own figures.
How the Referral Rate Calculator works
Referred customers cost little and stay longer. A rate above 10–15% means word of mouth is a real channel worth encouraging with a programme.
Worked example
With the example values (new customers in the period of 800, new customers who came through referrals of 120), the referral rate is 15%; customers from other channels 680. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is referral rate calculated?
referral rate = referred customers ÷ new customers.
Which figures do I need?
New customers in the period, new customers who came through referrals. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How often should I track this metric?
Weekly for live campaigns, monthly for channel comparisons, and always over the same period for spend and results so the figures line up.
