A referee in a loyalty program is the new customer who is invited or recommended to join the program or a business by an existing customer (the referrer).
Here’s what typically happens with a referee:
- Invitation: They receive a referral link or code from a referrer.
- Sign-up/Action: The referee uses this link or code to sign up for the loyalty program or make their first purchase.
- Reward: Upon completing a qualifying action (as determined by the program, such as making a purchase or simply signing up), the referee often receives a reward. This could be a discount, bonus points, a free item, or other incentives designed to encourage them to become a customer.
The referee benefits from the referral by receiving a special offer or perk for joining, making it more appealing for them to try out the program or business. This is a key component of successful referral programs, as it provides value to both the existing customer for their referral and the new customer for joining.