Referral Loop

A self-sustaining cycle in which existing customers bring in new customers, who in turn refer others, creating compounding word-of-mouth growth.

Referral loops lower your customer acquisition cost because happy customers do the marketing for you. A working loop can become one of your cheapest and most trusted growth channels.

A founder offers a £10 credit for every friend a customer refers. New customers join, love the product, and refer their own friends, keeping the loop spinning.