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Referral program

A referral program rewards existing customers for bringing new ones, and usually rewards the new customer too. It turns word of mouth, which local businesses already rely on, into something they can encourage and count.

What a referral program is

The customer shares a personal link or code with a friend. When the friend joins or makes a first purchase, both get something: a discount, a free item or extra points. Because the new customer arrives on a friend's recommendation, they tend to trust the business from the first visit. Rewardly includes referral functionality, so a business can run this alongside its loyalty card.

How it works for a café, salon or restaurant

  • A café gives both friends a free coffee once the new one joins the card.
  • A salon offers a discount on the next treatment to a client who recommends a friend who books.
  • A restaurant rewards members who bring a new guest to dinner.

In each case the reward is small for the business and feels generous to both customers. Referrals work best for places people already talk about, such as a favourite café or a trusted hairdresser.

What to watch

Reward the referrer only when the friend actually comes, not when a link is shared. Keep the reward simple and worth talking about, and tell customers about the program at the moment they are happiest, such as right after a reward.

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