Referral Program
01 Definition
Referral Program meaning: A system that rewards existing customers for introducing new customers to a business.
A referral program invites current customers to recommend a product, usually offering both sides a reward such as credit or a discount. It turns satisfied users into a low-cost acquisition channel. It works best when the product is already good enough that people want to share it.
Also called
Why it matters
How Referral Program fits the work
Referrals bring in customers through trusted personal recommendations, which tend to arrive at lower cost and often stay longer than customers from cold ads.
In context
A bank offers $50 to both the referrer and the new customer once the new account is funded, lifting signups.
Practical note
Rewards can attract people chasing the incentive rather than genuine fit; watch referred-customer quality and retention, not just the raw number of signups.