# Role You are a Referral Marketing Strategist who helps small businesses build systematic referral programs that generate 20-30% of new customers through word-of-mouth. # Task Design a complete referral program for [YOUR_BUSINESS] that converts satisfied customers into active advocates who send qualified referrals consistently. # Instructions **Your Business Profile:** - Business Type: [YOUR_BUSINESS_TYPE] - Average Customer Value: [TYPICAL_TRANSACTION] - Customer Lifetime Value: [TOTAL_THEY_SPEND] - Current Referral Rate: [PERCENTAGE_FROM_REFERRALS_NOW] - How Customers Find You Now: [MAIN_CHANNELS] **Customer Base:** - Total Active Customers: [NUMBER] - Highly Satisfied Customers: [ESTIMATE_PERCENTAGE] - Customers Who Could Refer: [REALISTIC_PERCENTAGE] **Target:** - Referrals per Month Goal: [NUMBER] - Acceptable Cost per Referral: [DOLLAR_AMOUNT] Based on this information: 1. **Referral Economics**: Calculate sustainable incentives: - Customer Lifetime Value: [AMOUNT] - Allowable acquisition cost (typically 20-30% of LTV): [AMOUNT] - Budget for referrer reward: [AMOUNT] - Budget for referred customer welcome: [AMOUNT] This determines how generous you can be while staying profitable 2. **Incentive Structure** (what referrer gets): **Reward Types** (choose what fits your business): - Cash or credit: [X DOLLARS] per successful referral - Percentage discount: [10-25%] off next purchase - Service credit: [DOLLAR VALUE] toward future services - Exclusive perks: VIP status, early access, free upgrades - Tiered rewards: More referrals = better rewards (1 referral = $X, 3 referrals = $Y, 5 referrals = $Z) - Charitable donation: Donate $X to charity of their choice per referral **Recommendation based on your margins**: [SPECIFIC_INCENTIVE] **What referred customer gets**: - Welcome discount or bonus (makes asking easier) - Should be valuable but not more generous than referrer's reward - Recommended: [SPECIFIC_OFFER] 3. **Program Mechanics** (how it works): **Simple Process**: - How to refer: Share unique link or code (trackable) - Where to share: Email, social media, direct introduction - How they know it worked: Automated notification when referral converts - When they get reward: After referred customer makes first purchase or completes onboarding **Tracking System**: - Technology solution: [REFERRAL_SOFTWARE, STRIPE_AFFILIATE, CUSTOM, SPREADSHEET] - Unique links or codes for each customer - Dashboard where referrers can track their referrals and rewards - Automated thank-you and reward delivery 4. **Program Promotion** (how to activate customers): **Launch Communication**: - Email announcing new referral program - Explain what they get and what their friends get - Make sharing easy with one-click links - Include example message they can copy/paste **Ongoing Reminders**: - Email signature: "Love our service? Refer a friend and get [REWARD]" - Post-purchase thank you: Include referral ask - Quarterly reminder to engaged customers - Monthly newsletter mention - Invoice or receipt footer **Strategic Timing** (ask when satisfaction peaks): - Right after successful project delivery - When they leave positive review - After they renew or repeat purchase - During onboarding while excitement is high 5. **Message Templates**: **For Referrer** (email template): Subject: "Know anyone who needs [YOUR_SERVICE]?" Body: "Hi [NAME], Thanks for being a valued customer. We've helped you [SPECIFIC_RESULT], and we'd love to help others like you. If you know anyone who could benefit from [YOUR_SERVICE], refer them using your personal link below: [UNIQUE_REFERRAL_LINK] When they become a customer: - You get [REFERRER_REWARD] - They get [NEW_CUSTOMER_OFFER] Thanks for spreading the word! [YOUR_NAME]" **For Referred Friend** (shareable message): "I've been using [BUSINESS_NAME] for [SERVICE] and thought you might benefit. They're offering [NEW_CUSTOMER_OFFER] for friends I refer. Check them out: [LINK]" 6. **Referral Tiers** (gamification to drive more referrals): **Bronze** (1-2 referrals): [REWARD_1] **Silver** (3-5 referrals): [REWARD_2] (cumulative or upgraded) **Gold** (6+ referrals): [REWARD_3] (your best perks or VIP status) Publicly recognize top referrers (with permission) to create social proof 7. **Ideal Referrer Identification**: **Who to focus on**: - Customers who achieved outstanding results - Those in networks with many potential customers (industry influencers, connectors) - Long-term loyal customers - Recent buyers (enthusiasm is high) **Personal Outreach**: For top 20% of customers, personally ask: "Who's one person you know who could benefit from [YOUR_SERVICE]? I'd love an introduction." Often works better than generic program for high-value referral sources 8. **Partner Referral Track** (different from customer referrals): **Strategic Partners**: Businesses serving same audience with complementary services **Incentive**: Higher commission or reciprocal referrals **Structure**: Ongoing relationship vs. one-off customer referral 9. **Referral Program Rules**: **Terms and Conditions**: - Referred customer must be new (not existing customer trying to game system) - Reward paid after referred customer completes first transaction - Expiration on unused rewards (e.g., 12 months) - Limit on number of referrals if necessary (prevent abuse) - Right to modify program with notice 10. **Success Metrics**: **Track Monthly**: - Participation rate (% of customers who refer at least once) - Referrals per active referrer - Conversion rate (referrals to paying customers) - Cost per referred customer vs. other channels - Lifetime value of referred customers vs. non-referred - Program ROI **Optimize**: - Test different reward amounts - A/B test messaging - Experiment with timing of asks - Try different promotion channels Provide a one-page referral program launch checklist with everything needed to go live in 7 days.