Unlock Rewards with Polaris Tax & Accounting's Referral Program! (2024)

FAQs

What are the rewards of referral program? ›

Referral rewards or incentives give customers a reason to share your brand with others (and can also give the people they refer more incentive to buy). So instead of hoping for passive word of mouth, your company can create a more reliable, more scalable customer referral program.

What is a referral program? A referral program is a word-of-mouth marketing tactic where existing customers tell their friends, family, and colleagues about your brand, products, or services. Typically, the customer receives a loyalty reward from the company when the person they refer makes their first purchase.

For example, in the retail industry, a referral reward may be a 20% discount on the next purchase for the existing customer and the new customer. On the other hand, in the financial industry, referral rewards may be much higher, ranging from $100 to $1,000 or even more.

What is a referral bonus? A referral bonus is an incentive for employees to recruit qualified candidates for their company. Typically a financial reward, companies pay employees a certain amount if they recommend a candidate for an open position.

A referendum is passed if it is approved by a double majority.

Your referral code is typically accessible in your account settings or profile section on most platforms. Look for a designated “Referral” or “Invite Friends” tab to find your unique referral code.

A referral program is a type of incentive program that rewards existing customers for referring new customers to a business. The reward can come in the form of cash, credits, discounts, or gift cards.

How do I get referrals for free? ›

Customer referral programs offer numerous proven benefits for businesses: According to Nielsen, 83% of consumers trust recommendations from friends and family over other forms of advertising. Referred customers have a 16% higher lifetime value compared to non-referred customers.

Agencies typically pay referral fees of 5% to 10% of the revenue they receive—but there's plenty of nuance on how you handle it, and many agencies pay 0% in referral fees.

A referral rate is the number of referred purchases as a percentage of the number of your total purchases. The global average referral rate is 2.3% while the electronics and gadgets industry has the highest referral rate of 3.4%. A 2% referral rate is considered a good referral rate for any industry.

Typically, the customer receives a loyalty reward from the company when the person they refer makes their first purchase. To encourage referral program participation, businesses will promote the rewards they offer—such as gift cards, ecommerce “cash-in” points, or branded swag.

A referral program can help you acquire new customers without spending money on ads, and they're also more likely to convert since over half of customers trust brand recommendations from friends or partners more than any other source of advertising.

Referral programs help build brand loyalty and increase the value you get from each new customer: Acquiring a new customer can cost 5-25 times more than retaining an existing customer.

Some incentives you may offer to employees for referrals include: Cash bonuses. Additional paid time off. Gift cards. Non-monetary gifts, such as a lunch or team party.