83% of happy customers would refer to your brand, but only 29% actually do.
What’s stopping them? It’s not a lack of love for your brand—it’s the absence of the right channel. The solution? A well-strategized referral loyalty program that makes sharing seamless and rewarding.
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Take Dropbox, for example. By rewarding both referrers and their friends with 500 MB of free storage, they grew their user base by an incredible 3,900% in just 15 months. That’s the power of a well-executed referral loyalty campaign!
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Four Ways to Make Referrals Irresistible (and Profitable):
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1. Two-Sided Referral Bonus: A Win-Win for Everyone 🤝
Give both the referrer and the referee a reason to participate.
Example: When a new customer signs up, both parties get rewarded.
Why it works: Encourages organic referrals by ensuring both sides benefit.
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2. Tiered Rewards: More Referrals, Bigger Perks 🎖️
Encourage repeat referrals with escalating rewards that get better over time.
Example:
First referral → 100 points + 5% off coupon
Third referral → 500 points + 10% off coupon
Tenth referral → 1,000 points + 15% off coupon
Why it works: Instead of stopping after one referral, customers stay engaged, striving for bigger rewards at every milestone. The better the perks, the stronger the motivation to keep referring—turning loyal customers into long-term brand advocates.
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3. Limited-Time Referral Boosts: Create Urgency ⏳
Turn referrals into a fast-moving game by offering time-sensitive bonus rewards.
Example:
Double points for every successful referral in the next 7 days
A 20% off coupon if the friend makes a purchase within 48 hours of signing up
Why it works: Urgency drives action. Customers are more likely to refer now rather than put it off, accelerating program participation and boosting short-term sales.
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4. Flexible Referral Rewards: Choose What Fits Your Strategy 🎯
Not all brands have the same referral goals. Whether you want to drive sign-ups, boost purchases, or reward engagement, a flexible reward structure helps you stay in control.
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Why it works: A one-size-fits-all approach doesn’t cut it. The right referral strategy lets you mix and match rewards to align with your brand’s goals—keeping both customers and Finance Mindy happy!
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According to Forrester, 61% of martech decision-makers expect revenue from referrals to grow by 21% on average. But launching a referral program from scratch? That can feel overwhelming. When done with Capillary, though, it’s a game-changer.
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Looking to expand your customer base with ease? Let’s build a program that delivers real results. Reply to this email, and let’s get started!
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- Helping you drive growth, one referral at a time,
Team Capillary
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