How do I create a referral program?
TL;DR
Decide the incentive (cash, discount, free product), set up tracking (unique link or code per customer), and promote it everywhere (email, receipts, social, in-store). Programs that reward both the referrer AND the new customer convert 2x better.
Detailed answer
- 1.Decide on a 'give-get' structure (both parties get a reward).
- 2.Set the reward at 10-20% of average order value.
- 3.Use a platform that auto-tracks (ReferralCandy, Friendbuy, or built into customer-marketing platforms).
- 4.Promote on the post-purchase page, in welcome emails, on receipts, in-store.
- 5.Track: referral rate (% of customers who refer), conversion rate of referred visits.
Common mistakes
- 1. Hiding the program in a footer link no one finds.
- 2. Setting rewards too small to motivate sharing.
- 3. Manual tracking that breaks past 50 customers.
What to do instead
Promote the referral program at the moment of peak satisfaction (after purchase, after a great service). Timing drives 5-10x more shares.
Make the referrer feel like a hero, not just a discount-getter. Recognition, status, and exclusive perks often beat cash rewards.
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