Introduction
A referral program is a marketing strategy where existing customers are encouraged to refer new customers to a business, often in exchange for rewards or incentives. Typically, both the referrer and the new customer receive benefits, such as discounts, cash bonuses, or free products/services. The main goals of a referral program are to increase customer acquisition, enhance brand loyalty, and leverage word-of-mouth marketing. At Eber, our program structure is customisable & tailored to the specific business needs, allowing for different reward structures depending on the situation or the goals of the referral program.
Glossary
Term | Definition |
Referrer | Refers to the individual or entity that directs or sends someone (typically a referee) to a specific website, product, or service, often as part of a referral program or marketing campaign. |
Referee | Refers to the person who is referred, usually someone who has not previously interacted with the product or service. The referee is the new customer or participant who joins or engages based on the referral. |
The referral program structure
Referral programs can be:
Direct: The referrer gets a reward after upon a successful sign up or when the referee successfully makes a purchase or takes a specific action.
Tiered: Referrer can be rewarded points based on their membership tiers. For example, if the referrer is in a higher membership tier such as premium or VIP status, they might receive more points for the same referral compared to someone in a lower tier such as basic or standard member.
Points based scheme: The setting is flexible and tailored to the specific business needs, allowing for different reward structures depending on the situation or the goals of the referral program. For example, if you are a referrer in a loyalty program, you might earn 10 points for each referral, but if you're in the "Gold" tier, you might earn 15 points instead.
One-time or recurring: The reward can be given for a one-time referral, or it might recur with each successful referral.
What's next?
Referral- Basic Setup
Referral- Advanced Setup