Referral Program Mechanics
Referrals are the highest-converting customer acquisition channel. This guide covers the mechanics of a high-performing program.
The give-get structure
Both the referrer and the new customer get a reward. Double-sided programs convert 2x better than single-sided.
Reward sizing
Set reward at 10-20% of average order value. Smaller feels insulting; larger destroys margins.
Trigger at peak satisfaction
Ask for referrals right after a great experience (purchase, service completion, milestone). Timing drives 5-10x more shares.
Tracking
Unique referral codes or links per customer. Auto-track who referred whom and credit accordingly.
Multi-channel promotion
Email, in-app, receipts, in-store signage. The more places you promote the program, the more customers find it.
Tools to help
Social Perks ships with full referral program infrastructure — codes, tracking, multi-channel promotion, and dashboards.
Related topics
See also: Loyalty program design, Customer retention strategies, Loyalty program ROI, Loyalty tiers, Loyalty program software comparison.
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