Prosocial referral rewards
People refer more effectively when the reward goes to their friend, because referring then looks generous and the friend has a reason to act.
Where it applies
Three of the eight page areas.
HomepageAlso applies CategoryNot typical SearchNot typical ProductNot typical CartNot typical CheckoutNot typical Post-purchaseMainly here
It also applies sitewide, on every page. See everything at work on Post-purchase pages
How to use it
Three ways to use it, and one to avoid.
- Lead with “give a friend X” on the thank-you page.
- Lead with the same “give a friend X” offer in the post-delivery email.
- Prefer friend-only or two-sided rewards over referrer-only ones.
- Avoid: sending refer-a-friend emails to the friend yourself without the friend’s consent; customer-forwarded links are safer.
What the research found
Rewarding the friend recruited more new customers than rewarding the referrer, in two field experiments.
Rewards for the friend recruited more new customers than rewards for the referrer.
In two field experiments, rewards for the friend recruited more new customers than rewards for the referrer. Referrer rewards help more with weak ties and little-known brands.
Key research
Three sources, each checked.
Last reviewed
Gershon, Cryder & John (2020) Why Prosocial Referral Incentives Work: The Interplay of Reputational Benefits and Action Costs J. Marketing Research Read the source Ryu & Feick (2007) A Penny for Your Thoughts: Referral Reward Programs and Referral Likelihood J. Marketing Read the source Schmitt, Skiera & Van den Bulte (2011) Referral Programs and Customer Value J. Marketing Read the source
Before you use it · UK law
Refer-a-friend emails the business sends to the friend need the friend's consent; customer-forwarded links are safer.
This is simply a pointer to check, not legal advice. Seek legal advice before you put this principle into action.