Referral programs are a great way to reward existing customers and leverage their loyalty to gain new customers. One of the most effective types of marketing campaigns, referred customers, customers, close deals faster, buy more frequently and have a higher customer lifetime value. 

Also known as word-of-mouth campaigns, referral programs are effective because new customers are much more likely to trust their friends when it comes to subscribing, signing up or making a first purchase.

Referral programs require effort from the user, so be sure to consider the best way to reach the user or advocate. With the Talon.One Rule Builder you can send, maintain and optimize complex and highly targeted referral campaigns.

Some important terms to keep in mind:

  • Advocate: the person who invited their friend via the referral program
  • Friend: the person who receives the invite from an advocate (also known as the referrer)
  • Referral Code: the code an advocate gives to their friend​

Campaign Idea 1: New Customer Referrals

Both advocate and friend will get 10% off next purchase when friends complete order in the first hour they are referred.
  • Place an incentive on the next purchase to encourage loyal customers to share your brand with people who trust their opinion, but also encourage them to make another purchase
  • Give the friend a nice incentive to make their first purchase, and allows your brand make an impact and prove their value to new customers
  • Add a time-sensitize rule to increase the sense of urgency for new customers to act and cut through the noise of other brands
  • Perfect to increase engagement of existing customers and increase top-line revenue.

Campaign Idea 2: First Purchase Reward

Encourage customers to refer friends and give successful advocates 50% off their first purchase. Friends get a 20% discount on their first purchase.
  • Ask all users to participate, not just loyal users, therefore increasing campaign reach and opportunities for success
  • Remove barriers like completing a purchase, so customers can immediately engage with your brand and participate in the referral program
  • Placing an incentive on the first purchase for both parties also encourages brand loyalty from day one while increasing revenue
  • Perfect for time-sensitive promotional offers that must reach customers at the right time, with the result of increase promotional revenue, customer retention.

Campaign Idea 3: Cash Back Incentive

Create a two-sided referral program where the advocate and friend get a 10€ cash back if both parties are successful the next time they make a bet or play your game, but only on best above 10€.
  • Encourage higher spending from customers by setting the minimum amount for taking part bets or purchases to 10€ before rewards can be redeemed
  • This referral structure asks more from advocate and friend, but will pay off due to higher spending and higher engagement of both parties in the game
  • Offering your customers discounts in real-time allows for a more personalized experience, increases user activity and
  • Perfect for a betting platform or gaming structure, that wants to increase more spending in your game or platform

Campaign Idea 4: Subscription Reward

Give rewards to both the friend and advocate in the form of a 10% discount, as long as both are paying subscribers to your service or website.
  • Rewards loyal users of your service and provide further incentive for long term use to improve your user retention and customer lifetime value
  • Both parties benefit from staying subscribed to your product and are incentivized to continue using service beyond first purchase or free trial
  • This is a two-sided reward structure that will see higher success for the campaign performance
  • Perfect for on-demand services or entertainment / news services that utilize a subscription based business model and want to reduce promotional spend with automated promotions


Campaign Idea 5: Loyalty Reward

Run a campaign that doubles the advocates rewards with a discount of 10% for their first successful referral and 15% for the second one. Friends get 10% discount on their first purchase.
  • This two-sided reward structure favours the advocate, but in the end both parties receives incentives from your brand
  • Reward the advocate for doing more work by giving them a larger discount on the second referral, which is a nice bonus and a great way to continuously grow your customer base
  • Placing an incentive on the new customer’s first purchase encourages positive brand association from day one
  • Perfect for reducing customer acquisition costs and increasing retention rates

Campaign Idea 6: Purchase Value Incentive

Create a campaign that gives advocates a 20% discount off the purchase value of friend, while the friend  gets 30% off their first purchase.
  • Customize the incentive value based on the total value the friend purchases to directly increase sales revenue
  • Advocates will encourage their friends to make bigger purchases to ensure they get greater reward thus increasing sales revenue
  • New customers are more likely to make a first purchase of higher value and buy more frequently when they have been referred from a friend who they trust
  • Perfect for reducing customer acquisition costs with targeted promotions along the conversion funnel

We have just covered some basic referral programs that you can implement with Talon.One. Easily increase your customer base through existing users with referral programs while improving customer loyalty and rewarding friends. It’s a win-win for everyone.

Check out more great ideas for campaigns in Customer Rule Examples