How to build a customer referral program in 2026

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1. A referral program is a marketing strategy that uses word-of-mouth techniques to encourage brand advocacy. “Customers who participate in a referral program can spread the word by sharing referral links or discount codes with people in their network.” Before visiting a new city, you may ask your family members or friends who’ve been there for recommendations on things to do before researching options yourself. While trying your uncle’s favorite pizza spot or checking out your best friend’s go-to park might not be an example of a formalized customer referral program, they share a common truth: If someone you know tells you to try a particular product or service, chances are you’ll at least consider it.

   In Two-sided referral incentives