Create referral incentives. Give existing customers a reason to introduce your business to someone else.
What to do
- Reward completed purchases rather than raw introductions or clicks.
- Set a clear reward amount, eligibility period and method of attribution.
- Compare the referral cost with your normal cost of acquiring a customer.
Watch out for
An incentive that is too generous can produce sales while destroying margin; one that is confusing may never be used.
Example
A beauty business could offer an existing customer a fixed store credit after a referred friend completes a first purchase above a minimum value.
A connected customer and order system makes referral programmes easier to verify than informal promises across chats.
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