How to Create a Customer Referral Program

A referral program is a marketing tactic that encourages customers to recommend your brand to other people. In other words, here, the information is passed by word of mouth.  Instead of leaving reviews on a website, or participating in a customer success survey, referral programs enable customers to share their shopping experience with partners, colleagues, and friends.

The aim of a referral program is to generate new leads for your business. However, it does not mean that random people are going to be part of your program. You should ask customers to recommend your brand to people who are going to benefit from your products and services. 

If you are serious about leveraging your customer referral program, then read our today’s blog. We will walk you through some key steps to take for building a perfect customer referral program.

A 4-Step Guide On Creating a Referral Program

Whether you are a small business or a large Ecommerce Platforms like Shopify or Etsy, a customer referral program can help you to take your business to the next level. Below you will find detailed instructions. 

1. Set Goals

The first step is to identify goals you want to accomplish with a referral marketing campaign. Maybe you want more customers, increase revenue, or boost customer retention rate. These are all specific goals for a referral program. Choose a business goal you think you are able to achieve. If you set goals that are not measurable or attainable enough, you are going to waste a lot of time and resources. Your goal can be promote your solution like a  healthcare chatbot and have big number of users.

2. Choose Promotion Channels 

Now it is high time to think about how you will get your offer in front of your customers and what channels to use to promote your referral program. You may consider the channels your customers use the most and currently work well.

If you have had a negative experience with a particular channel, do not use it anymore. Consider using social media as people spend a lot of time there. Also, you can advertise jobs for 18 year olds on social media and hire great talents who will create customer referral programs. 

3. Identify Your Rewards

Now, it is time to choose the incentives. If your customers manage to bring their friends, colleagues, or relatives, make sure to express your appreciation by rewarding them. Incentives are different. You can gift 10$ every time they refer you to someone who ends up signing up on your website. You could also send discounts, and coupons, or offer free shipping. Do not forget about new customers too. Reward them for joining and choosing you.

4. Track And Improve Your Referral Program

After launching the referral program, you should regularly monitor how it progresses. Check how many people were referred and whether they were converted or sold. Tracking your referral program will allow you to understand what works well and what needs to be improved.


As you can see, a customer referral program is a highly cost-effective and beneficial way to attract new leads to your business. It is also easy to implement because your current customers trust you and the chances are high that others will also engage with your business and make purchases.

Thanks for reading, and good luck!

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