Referral program
Updated September 30, 2026
In one sentence
A referral program rewards a customer who brings you a new customer. Often, the newcomer gets a gift too.
How it works
The customer shares a link or code from their card. Their friend signs up with that link and gets a welcome gift. The referrer then gets their reward, for example a stamp or a free service. “Give a coffee, get a coffee” is the easiest version to explain at the counter.
Why it’s worth it
A customer brought in by someone they know already trusts you. A study published in the Journal of Marketing followed about 10,000 customers of a bank for almost 3 years. A referred customer was worth at least 16% more than a similar customer who came another way. It’s a banking result: a trend, not a promise for your business.
Preventing abuse
Reward the referrer only when their friend really comes in, not as soon as they sign up. Also cap the number of rewarded referrals per month. With the card, this is the default: the referrer is rewarded on the first real visit of the person they brought in.
A beauty salon offers: “Give a friend $10 off her first treatment, get $10 when she comes in.” The friend signs up through the link, books an appointment, and the customer’s credit is added to her card on the day of the treatment.
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