Marketing & Advertisingintermediate
Referral Program
Definition
A structured system that rewards existing customers for recommending your product to new customers, usually with discounts, credits, or commission.
Why it matters
Word-of-mouth is the highest-trust acquisition channel. A referral programme systemises it. Referred customers have higher LTV, lower churn, and are more likely to refer others.
Example
"Give £10, get £10", every customer gets a unique link. When a friend uses it and makes a purchase, both get £10 credit. Gymshark and Glossier built empires partly on referral loops.
Related terms
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