A referral program or a “refer-a-friend” program is a marketing strategy used by many top ecommerce brands to incentivize existing customers to recommend the brand and its products to their family and friends.
Referral programs are often called word-of-mouth (WOM) marketing, because existing customers are rewarded for sharing and incentivize new customers to try out your brand.
Said referral incentives, include free cash, major discounts, or a free month of subscription or even products and custom gifts. While there is an upfront cost to the marketing channel, referral programs significantly increase long-term revenue by nurturing loyal customers out of your existing customer base.