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Referral Program Design: Turn Customers Into Your Best Channel

How to design a referral engine that consistently generates high-LTV customers at near-zero CAC.

The Referral Flywheel

Happy customer → refers friend → friend converts → higher retention (social validation) → refers more

Incentive Structures

Program Design

Trigger points: Post-purchase, after positive support interaction, at NPS survey (promoters only).

Reward timing: Within 24 hours of conversion.

Tracking: Unique referral links, UTM codes, promo codes.

Metrics

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