Referral Program
A structured incentive that rewards an existing customer for introducing a new customer to the business.
A referral program gives an existing customer something (bonus stamps, credit, a free item) when a person they introduce joins and, usually, makes a first purchase. The referred customer often receives a welcome benefit too. The structure turns a recommendation, which happens anyway, into a tracked action with a reward attached.
It matters because a recommendation from someone the new customer trusts carries weight no advertisement does, and because a referral is cheaper than most other ways of winning a first visit. Example: a groomer's client shares her card link; her friend joins and books; both receive a bonus stamp after the friend's first appointment.
A referral program differs from an affiliate scheme, which pays third parties commission, and from a general loyalty program, which rewards the customer's own purchases. It sits alongside the loyalty card rather than replacing it.
With Loyal-T Cards, referral functionality is supported where configured: an existing cardholder can be rewarded when someone they refer joins and makes a first purchase. It is an additional capability of the program, not a separate card. In the Peachbrown Cafe 12-month dashboard view, 62 referrals were recorded.
Related terms
Loyalty Program
A structured way of rewarding customers for repeat purchases or continued custom.
Digital Loyalty Card
A loyalty card that exists as a pass on the customer's phone, typically in Apple Wallet or Google Wallet, instead of as a physical card.
Repeat Customer
A customer who has bought from the same business more than once.