Before launching a “Refer a Friend” program, decide who can take part, which purchase by a new customer qualifies for a reward, and when bonuses are credited. Record participation limits and the costs of rewards and promotion messages separately. In Torgsoft, bonuses for a friend’s purchase are credited to the owner of the primary card after the receipt is paid.
A referral reward differs from a reward for a customer’s own purchase: the rules should clearly state who receives each reward and what condition must be met for it to be credited.
Define what counts as a referral
A referral is a recommendation of a store, product or service to another person, who then becomes a new customer. In the promotion rules, specify which action by the new customer the store considers fulfillment of the condition—for example, paying for their first purchase.
State who receives the bonus and when it is credited. Set out the condition before the promotion begins so customers know it before making a purchase.
Set participation limits
The program rules may prohibit self-referrals and limit each new customer to one qualifying referral. If the store applies these limits, define how they will be checked. Preventing the same promo code from being used more than once does not replace checking for duplicate cards or self-referrals.
How bonuses are credited in Torgsoft
In Torgsoft’s “Refer a Friend” promotion, you can set a fixed bonus amount for the owner of a discount card when their friend makes a purchase. Once payment for the receipt is entered, bonuses are automatically credited to the owner of the primary card.
The program marks the promo code as paid in the customer’s card record so it cannot be used again. The store sets customer participation terms separately, including whether self-referrals are prohibited.
Track costs and results
Program costs include customer rewards and promotion of the offer. Compare these costs with data on referrals and the purchases made through them. Metrics you can review include referral conversion and revenue from referrals.
You can also track referral data manually in a spreadsheet. Comparing these metrics does not prove that all purchases happened solely because of the promotion or that it paid for itself.
The referrer report is for partners
Torgsoft has a separate partner feature: the referrer report. It shows the number of customers brought in by each partner and their employees. The partner report and the crediting of customer bonuses through the “Refer a Friend” promotion serve different purposes.
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