These referral program examples from our top performers will show you exactly how the best referral programs work... and why.
Whether this involves revamping your existing referral marketing program or kick-starting your very first campaign, here are industry-leading referral program examples to pull inspiration from.
There are many impressive referral program benefits, but what makes a customer referral program work? Let's start by quickly looking at the anatomy of successful customer referral programs to find out.
Referral programs start with an incentive structure.
Referral incentives are a method of enticing prospective or existing customers to refer their friends and family members to a business with the goal of increasing sales and overall growth.
There are two different referral program incentive structures that can be used. One-sided and two-sided referral incentives:
Further reading: to learn more about how to attract high-value customers, see our incentivize best customers guide.
Whether it be a one-side or two-sided referral incentive, you'll need to offer referral rewards to your referral process to, well, incentivize referrals and boost customer acquisition.
The types of rewards that are awarded to a new or existing customer come in all shapes and sizes, including:
Now that we’ve covered the referral incentive structure and the different rewards that you can offer your Advocates and Friends, let's talk about ways to promote your budding referral program.
When it comes to referral marketing, timing, placement, and methodology is everything.
Here at Friendbuy, we've developed a set of tried and tested ingredients for a success referral program that we encourage our customers to implement:
Awareness + Accessibility + Ease of Use = Impulse Referrals.
To give you a better understanding of how this works, let's break down each portion of this formula:
Okay. Now we've discussed the when, let's dive into the where.
There are several places to promote a referral program, depending on where your customers are and how you want to reach them.
Let’s look at a successful example of this: Getaway Boosts Engagement by Optimizing Email Promotions
Vacation rental brand Getaway recognized that most referral engagement was coming from email promotions, so in addition to following all best practice placements, it has optimized this channel to encourage even more sharing in the middle of the referral funnel.
Because the company gets such good engagement through email, Getaway emphasizes email marketing with at least three emails a month. Every email communication customers receive from Getaway includes a CTA for the referral program, making it truly part of the brand experience. With a CTA in the header of every email, the referral program is front and center when customers open an email from Getaway.
Customers are continually reminded that they can share a $25 discount with friends and get $25 off their next vacation booking. Getting constant reminders about the Getaway referral program and having easy mechanisms to take advantage of it also encourages impulse sharing.
Getaway also sends one dedicated email each month that is solely about its referral program. With no other competing content, dedicated emails see better engagement and higher share rates.
Let’s look at another successful example of promoting across multiple channels: Afterpay Prioritizes Promotion with Multiple Channels
Afterpay, a company that allows customers to buy products online and pay later in installments, uses three primary channels to promote its referral program and grab customers’ attention early in the referral funnel.
Afterpay customers use their mobile app to shop with participating retailers. This is the perfect time for them to refer friends who might enjoy the same experience, so the company encourages referrals while customers are actively engaged with the brand in the app. With a $10 incentive for referrals, Afterpay customers have ample motivation to share with multiple friends.
The referral CTA is presented in multiple ways to catch customers’ attention, including:
Afterpay is a mobile-first brand, so it makes sense that it would also promote its referral program through SMS push notifications. For customers who prefer to engage on mobile devices, Afterpay makes it easy for them to refer friends and sends periodic reminders via text.
With a growing email list that gets good engagement, Afterpay makes sure to include personalized URLs (PURLs) in its emails to advocates. The PURLs can be copied with a single click and pasted into any channel the customer prefers, including text message, social media, and email. Advocates can also take action directly from the email to make sharing even easier.
And last? The how.
Here are some customer referral campaign ideas you can use to promote your program:
Let’s look at a successful example of this: Wine Insiders Wins Referrals with Limited Time Offers and an Elite Program
Premium wine club Wine Insiders uses multiple approaches to get the most out of a highly shareable vertical. The evergreen referral program, which gives both friends and advocates a $25 discount, encourages advocates to share through emails and PURLs.
The company also leverages the referral channel to promote limited time offers. For example, it ran a one-week only anniversary campaign to celebrate its 39th anniversary, sweetening the friend and advocate offer to $39.
During this same period, Wine Insiders also teamed up with some of their celebrity partners for a give-a-box campaign. Personal URLs for each celebrity were created and posted on Instagram. Customers simply pay taxes and shipping, and receive free wine. This approach also creates an opportunity to upsell additional wine during the referral flow, increasing the average order volume.
There are several best practices that businesses can follow to maximize the effectiveness of their referral marketing campaigns. These include a focus on:
Let’s look at a successful example of this: Hill House Home Prioritizes Referral Offers
Lifestyle brand Hill House Home has a highly visible referral program that gets top priority among their other marketing channels. The evergreen program was launched with a strong 20 percent discount reward for advocates and $20 coupon code incentive for friends. This has led to a high advocate reward redemption rate and a growing customer base.
In addition to promoting the referral program on the website and through targeted emails, the company also leverages Friendbuy’s integration with Attentive to send PURLs via SMS messages, capturing attention from customers who prefer to communicate with mobile devices. Hill House Home uses these multiple communication methods to capitalize on product launches, which drives up the share rate and conversion rate.
The company uses multiple channels and strategies to promote its brand and boost sales, but the referral program is always a top consideration. For example, it adjusts the referral offer to account for other promotional periods, ensuring that referral is always the richest offer. This is because Hill House Home knows that growing its referral program will not only increase sales in the short term but also support long-term growth goals by continuing to generate repeat sales, capturing new customers, and paying for itself over time.
Okay. Now that we've tackled the technicalities of successful referral programs, it's inspiration time.
To get your creative juices flowing, dig your teeth into these best referral programs examples that use Friendbuy.
If you're a health conscious dog lover, you'll appreciate how difficult it can be to source natural products for your furry friend. Now, Natural Dog Company is making it even easier for new customers to discover its products through its referral marketing program.
Here's how it works: Thanks to a wide range of integrations, a powerful trio made of Klaviyo, Okendo, and Friendbuy set the scene for a seriously potent referral marketing campaign. When an existing customer refers a friend, who then makes a purchase on the Natural Dog Company website, both the Advocate and Friend will receive a $10 store credit.
Why did the company employ this type of referral program?
Allison Kelly, Natural Dog Company's Director of Creative Branding and Customer Retention, explains:
“For me, the entire process was about making a referral program that wasn’t an afterthought, and specifically wasn’t just an extension of a loyalty program. We wanted to structure a referral program that goes beyond what traditional referral programs do, and also integrates with our existing marketing campaigns.”
How was this achieved? Allison goes onto say:
“So that was really a no-brainer for us when we were able to combine Friendbuy, Klaviyo and Okendo - being able to combine that tech stack to meet our customers where they’re at, give them the opportunities to leave reviews, to provide a referral, and to respond to our emails.”
The result: Overall, the referral program has been a huge success, driving new traffic and sales to the company's website. In fact, thanks to the refer-a-friend program, the Natural Dog Company saw a 20% higher average order value (AOV) and a 5% jump in the number of email subscribers. Many customers have been so impressed that they've become brand ambassadors, spreading the word about Natural Dog Company on social media and beyond.
Who this is for: Give $10, get $10 referral programs are best for businesses that offer products or services that are low-cost or have relatively small profit margins.
Further reading: How Natural Dog Company Accelerates Subscriber Growth.
Since their launch in 2011, Thinx has been a leading innovator in the menstrual clothing industry. Their absorbent panties have become a staple for women who menstruate, post-childbirth, and experience light incontinence. In addition to their quality products, Thinx is also well-known for their marketing prowess—which has helped them amass a large and loyal following.
To add to their marketing arsenal, Thinx introduced a referral marketing program as a supplementary way to engage with their existing customers while also attracting new customers. The program rewards customers for referring friends and family members to purchase Thinx panties. For every person who registers through an existing customer's referral link and makes a purchase, both the Advocate and Friend receive $10 off of their next order.
Brendan Hastings, SVP Engineering and Digital Product at Thinx, discusses his thoughts on the program so far:
“Friendbuy collaborated with us to develop stackable credits on Shopify Plus. It’s really exciting and the results have been astounding—our referral program has already doubled in size.”
The result: As Brendan alludes to, with a 114% revenue growth year-over-year, a 2x increase in referral program size, and less than a $1 cost per acquisition (the average in the apparel industry coming in at $129), it's fair to say the program has been widely successful.
Who this is for: A $10, get $10 referral program is best suited for businesses that offer a product or service that solves a common problem and is therefore highly shareable.
Further reading: How Friendbuy’s Shopify Plus Integration Helped Thinx Grow Referral Revenue.
Get Back Necklaces, a leading provider of custom engraved necklaces and personalized jewelry, has implemented a referral program to great success. When current customers refer friends and family members to Get Back Necklaces, both parties earn a discount when the Friend makes their first purchase.
To take part in the referral program, Advocates create a free account on the Get Back Necklaces website, where they’ll find their Personalized URL (PURL) to share with their Friends. When a Friend uses the link to make a purchase on the company’s website, both the Advocate and Friend receive a 50% discount.
“After switching to Friendbuy, our conversion rate more than doubled and our referral revenue increased by 320%. Then we switched from a dollar-based reward program to percentage-based and our share rate and revenue per share rate doubled again.”
Explains Maclaine Borne, E-Commerce Manager of Get Back Necklaces.
Even more impressive, thanks to Friendbuy's built-in A/B testing functionality, Get Back Necklaces switched up their initial referral offer and noticeably increased their referral revenue.
Maclaine explains,
“For eight months, we used a dollar-based offer and then we tried out a percentage-based offer. After the switch, we saw a massive increase in our revenue, our conversion rate, and our revenue per share. It’s had a big impact, both on customer retention and acquisition.”
The referral program shifted from a give $10, get $10 incentive and moved to the current give 50%, get 50% model.
The result: An astounding 700% increase in referral revenue.
Who this is for: A give 50, get 50 referral program model can be a powerful tool for just about any type of business. If you’re looking to increase word-of-mouth marketing and improve customer acquisition, then try a percentage-based offer.
Further reading: How Friendbuy’s Built-In Optimization Tools Helped Get Back Necklaces Grow Referral Revenue by 700%.
With Byte, a teledentistry provider, patients can see a dentist from the comfort of their own home. No more visits to the dentist's office—simply dial-up the dentist on a computer or phone.
Cool concept, right?
For sure. But even more impressively, Byte's Friendbuy-powered referral program is proving to be Byte's return on investment (ROI) powerhouse. The program has been instrumental in helping Byte attract new patients and grow their business.
Aaron Hall, Byte's Marketing & Referral Program Manager, states:
“The referral program is our highest converting channel, with a conversion rate of approximately 50%. Compared to other marketing channels, referral is the most effective and the most efficient.”
Through the referral program, Byte rewards patients for referring their friends and family members to the practice. Referrers earn $100 for every new customer they refer and the referred customer earns 85% off their impression kit and $100 off their aligners.
The referral program has helped Byte attract new patients and grow their business.
Aaron goes onto say,
“Byte takes care of our customers, so they want to refer their friends. Friendbuy facilitated a really easy way for customers to kick out a referral link to their friends. We’ve even seen some people who aren’t officially ‘influencers’ post their referral links in YouTube reviews.”
In addition to retaining existing customers and attracting new patients, the program has also helped increase revenue and drive down costs. Thanks to the referral program, Byte is seeing better results than through any other marketing channel.
The result: The referral program has yielded a 2x on referral transactions year over year and an impressive 50% conversion rate on referred customers.
Who this is for: This type of incentive structure is best for service-based businesses that have a loyal customer base.
Further reading: Byte’s Friendbuy-Powered Referral Program Drives More ROI than Any Other Channel.
Looking for a way to save on your clothing expenses? Nuuly's refer-a-friend program may be just what you need. For every referred friend that signs up for a Nuuly subscription, the advocate receives $10 off their own monthly subscription. Plus, the friend receives $10 off their monthly subscription, too.
So, how does it work?
After the referring customer signs up, they'll receive an email notification with a unique referral link. This link can be shared with as many friends as they like, each successful referral earning the advocate $10 off their monthly subscription.
Rachel Smith, CRM & Analytics Manager at Nuuly, knew that referral marketing was a key way to grow the subscription-based business:
“Subscription-based business models need referrals and word-of-mouth marketing. We knew we needed it, but there was no one at Nuuly that had ever worked on a referral program.”
That's where Friendbuy's onboarding team stepped in; working alongside Nuuly's marketing experts, the duo wasted no time and put together an effective referral program that was destined to find success.
Rachel explains this process:
“We went all-in and integrated customer lifecycle touchpoints. We made it super easy for our customers to refer-a-friend at relevant times. That’s been so successful in terms of new subscriber acquisition.”
The result: Since launch, Nuuly's referral program has found extraordinary success. The company's biggest fans—some referring over 500 new subscribers—share referral links on their social media channels regularly, bringing over 2,500 subscribers in just a few weeks.
Who this is for: Subscription-based businesses that have physical products and loyal customers.
If you’re looking to get your friends on the best workout routine out there, Tonal is here to help. With Tonal's referral program, you can earn rewards for every friend who purchases a Tonal strength training machine.
How does it work?
Advocates simply refer their friends and family to Tonal using a unique referral link generated by Friendbuy inside the company's app. Once the referred Friend uses the generated link to make a Tonal purchase, the Advocate receives $50 to spend in the Tonal Gear Shop. In return, the Friend gets $100 off a Tonal machine.
It's a win-win for everyone involved.
Tonal's referral program was made possible by Friendbuy.
Rich Krolikowski, Tonal's Growth Marketing Manager of eCommerce, shares his thoughts,
"The Friendbuy experience is honest. It’s efficient, and it continues to evolve to meet our needs. With a partner this good, there’s no need to look anywhere else."
Rich details his experiences with the Friendbuy platform,
“The dashboard is awesome, support has been stellar, and their APIs make the experience customizable and flexible. We launched it through the app and quickly had transparency around successful referrals. It’s a no-brainer.”
The result: Since launching its referral program, Tonal’s referral program is now responsible for 4-7% of the company's total revenue (growing month over month) and, thanks to the program, the company has seen a 500% conversion rate increase over other marketing channels.
Who this is for: This model works well for businesses who want to grow their customer base and re-engage customers after purchasing big-ticket items.
Flaviar, a subscription-based online liquor store, has seen significant success with its referral program. Since the launch of the program, there has been an influx of customer referrals and an overall spike in revenue. The company credits this success to the referral campaign’s simplicity and the rewards it offers.
To take part in Flaviar's referral program, Advocates simply share their unique referral code with Friends. If a Friend subscribes to one of Flaviar's membership plans, both the Advocate and Friend receive a free Tasting Box or spirits bottle of their choosing.
Matija Valinger Sluga, Product Manager at Flaviar, explains the team's thought process when kick-starting their referral program,
“We started with a hypothesis: if our members are satisfied and happy with our product, they’ll share it with friends and family. That was the goal behind adding a referral program, and it’s worked out well.”
Matija continues,
“Friendbuy proved our hypothesis that if members are satisfied with our product and service, they’ll want to share it. We didn’t expect this program to be such a huge success—and we’re really happy with how many new members we get on a weekly basis.”
The result: Since launch, Flaviar has seen a 256% increase in referral revenue growth year-over-year. They've also seen an 130% increase in social shares, and a 300% increase in conversions. This goes to show that referral programs can be successful both in driving sales and also increasing brand awareness.
Who this is for: Free samples are great incentives for the food and beverage industry.
Further reading: How Flaviar Grew Referral Revenue by 256% Year-over-Year with Friendbuy.
SPANX, a company that makes shapewear and lingerie, has seen outstanding success with its referral program.
The underwear and shapewear company has a well-designed referral program that is simple to use and rewards both the Advocate and the Friend. Customers can refer their friends by sharing a special code or link. If the Friend purchases something from SPANX, then they will receive 15% off their next purchase. In return, the Advocate receives a $20 credit to their account.
As great as this program sounds, it hasn't always been smooth-sailing.
Nadina Bourgeois, Senior Digital Paid Manager at SPANX, talks to her team's pain points when trying to promote their line of shapewear,
“SPANX is built on word-of-mouth marketing, whether it’s people telling their friends about our products or getting Oprah’s seal of approval. But how could we grow via word-of-mouth in the digital realm?”
The answer was a Friendbuy powered referral program.
“Most software providers sell the tool and then leave you to figure out the rest. Friendbuy is the complete opposite. They’ve been the most hands on of any software as a service company I’ve ever worked with.”
The Friendbuy team helped SPANX fine tune their referral program and find the right kind of rewards to offer their customers.
The result: SPANX has found their referral program has been so successful that it has resulted in an 8% higher average order value (AOV) with referred customers than standard orders and a 15% conversion rate from referred customers.
Who this is for: This type of program is best suited for businesses that offer products or services that have a relatively large profit margin, like specialized retail clothing.
Intuit QuickBooks, the popular accounting software, has launched a referral program to help new users get started with their service. The referral program is simple: for every Friend a happy customer refers, the Advocate receives a $100 Visa prepaid card to use wherever they please. The Friend receives a 50% discount off the first 6 months of their Intuit subscription.
Who this is for: Referral programs that offer handsome rewards like $100 Visa prepaid cards are best for brand’s that have low operating costs, like a subscription-based service, and have the luxury of high-profit margins.
Mint Mobile is a telecommunications company that provides wireless service to customers in the United States. Mint Mobile operates a nationwide network backboned off of T-Mobile infrastructure. The company offers a variety of plans for its customers, including unlimited talk and text, unlimited data, and international calling.
Mint Mobile's referral campaign is one of the most generous in the market. For every Friend that you refer to Mint Mobile, Advocates receive a $25 account credit. The best part? To encourage referrals, Mint Mobile's referral program is accumulative. Meaning, Advocates will earn credits as follows:
Earning totally $240.
The 6th referral?
Referral #6 starts you back at referral #1. Advocates can make 10 referrals per year, up to $480 worth, which can be used toward Mint Mobile’s services. As this Advocate writes on Medium, he received four years of Mint Mobile service using the company's referral program.
In return, the referred Friend earns a $15 referral bonus when signing up for one of Mint Mobile's services. Mint Mobile makes it easy to refer Friends by including a "Referral Program" tab right inside their dashboard. There, Advocates can enter their friend's phone number and hit send. The Friend will then receive an SMS with all the details and a unique link to sign up.
Once they sign up, both the Advocate and referred Friend receive the credit to their accounts.
The result: Mint Mobile kicked off their referral program back in 2018. Since then, the company’s Friendbuy-driven referral program has proven to be an excellent referral conduit, increasing loyalty to Mint Mobile and bringing new customers into the fold.
Who this is for: Tiered referral programs are perfect for customers who are likely to make repeat purchases.
Feeling inspired?
Here at Friendbuy, we're here to help. Our platform allows users to create custom referral links, track referrals, and reward Advocates who send new customers your way.
So what are you waiting for?
Whether you're ready to revamp your existing program or ready to launch your very first campaign, contact Friendbuy today.