GlossaryCustomer Referral Programme
Customer referral programmes facilitate a recommendation between a customer and a prospect according to defined conditions. A reward may be offered to the referrer, the referred customer, or both. Eligibility, validation, and the awarding timeframe must be clearly explained before participation to minimize misunderstandings.
A concrete example
A customer shares their link with a friend or family member. The prospect chooses to register, and the reward is validated after a defined event, such as a confirmed purchase.
A point to consider
Avoid confusing shared contact information with a willing prospect. Clearly state the validation, cancellations, and conditions for both parties.
Make each recommendation explainable
Assign an ID to the referral and keep track of the events that justify its status: invitation, prospect's approach, qualification, conversion, and validation. Account for duplicates, existing customers, and cancellations. The participant must understand the current stage without accessing their contact's private business data. A stable matching rule limits disputes between referrers.
Questions to ask your team
- What event makes the reward permanently acquired?
- How do you explain a refusal or a competing allocation?
Enthusiasm is contagious.
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