Referral Marketing

Referral marketing encourages existing customers to bring in new customers through recommendations, often with structured rewards. It matters because trusted peer recommendations can improve lead quality and reduce acquisition costs. Effective programs define a clear referral trigger, simple sharing flow, and fair incentive model for both referrer and recipient when appropriate. Teams should track referral conversion rate, fraud risk, and retention quality of referred users. A common mistake is offering incentives without product-value fit, which can produce low-intent signups and weak long-term contribution.