Referral marketing is a strategy that incentivizes existing customers to refer new clients through word-of-mouth recommendations, often in exchange for discounts, rewards, or bonuses. This approach leverages customer trust to acquire high-quality leads at a lower cost than traditional advertising. CRM platforms facilitate referral marketing by tracking referrals, automating reward distribution, and analyzing program effectiveness. Companies with strong referral programs benefit from increased brand advocacy, improved customer acquisition, and enhanced loyalty.