A referral code is a unique identifier, often a combination of letters and numbers, used to track a recommendation between two people.
In practical terms, an existing customer (the referrer) shares this code with a friend or family member.
If the latter places an order or registers using this code, everyone wins:
Why does this system work so well?
Because it is based on trust and word of mouth.
And above all, because it is simple for brands to implement... and very effective in building loyalty and recruiting new customers at a low cost.
For the brand, it's a real growth driver.
It turns satisfied customers into ambassadors.
It gains new buyers at a lower cost.
And as a bonus, it strengthens the loyalty of its existing customers.
Not bad, right?
This digital word-of-mouth creates natural virality.
Every customer can become a marketing channel.
And when it's well thought out, referral marketing fits perfectly into a sustainable and profitable acquisition strategy.
👉 Need inspiration? Discover some examples of inspiring referral programs.
This little alphanumeric code has everything a big one has (really?).
It ticks several key boxes on the business side.
First, it allows for accurate and automated performance tracking.
Since each code is unique, it's easy to see who referred whom, how much it earned, and what rewards were triggered.
Second, it transforms traditional word-of-mouth into a digital lever.
No more crossing your fingers and hoping a customer will talk about you: you encourage them to do so and measure the real impact.
The referral code also acts as a loyalty booster. It encourages customers to come back, share, and engage.
In short, it encourages them to become more involved in the life of the brand.
And guess what? An engaged customer is a customer who stays. They build loyalty on the one hand and convert on the other.
To maximise the use of your referral code, it is essential to make it easy to share.
With Loyoly, your customers can share their code in several simple and convenient ways: by simply entering their friend's email address, copying a personalised referral link to send via messaging or social media, or even sending a code directly via text message.
This flexibility allows everyone to choose the sharing method that suits them best, making referrals smooth, accessible and, above all, highly effective for quickly expanding your network of ambassadors.
Pssst... You might find this interesting!
Referral programs are strategic for your brand, and we can probably help. Check out our platform!
Loyoly, as a post-purchase platform, helps you turn your customers into ambassadors.
Our solution allows you to quickly launch a personalized referral program that is tracked and integrated into your post-purchase journey.
The goal is to activate your customers, build loyalty, and grow your customer base naturally.
You can configure rewards, automate mailings, track results in real time... all without adding to your marketing workload.
Find out how to set up an effective referral program with Loyoly.
Loyoly is a post-purchase engagement platform that orchestrates journeys via +40 mechanics to boost LTV and social proof, while reducing CAC.
