Referral Program

A Customer Referral Program rewards existing customers for bringing in new customers, typically with a give-get reward structure ("Give $25, Get $25"). Referrals are the highest-converting acquisition channel for most local businesses — referred customers convert at 2-5x the rate of cold leads and have 18% lower churn (Wharton).

How referral programs work

Existing customer receives a unique referral link or wallet-pass-embedded QR. They share with a friend. Friend installs a co-branded wallet pass with the give-amount discount loaded ($25 off first visit, etc.). When the friend redeems, BOTH wallets update — friend gets their discount, original customer gets their give-amount credit. Attribution is automatic.

Industry referral propensity

Referral works for every industry but converts at very different rates. Highest propensity: beauty salons (0.45), nails (0.40), medspas (0.45), dental (0.35), barbershops (0.45). Lowest: QSR (0.20), retail (0.25), ecommerce (0.25). Wallefy weights referral as a channel investment based on the industry's referral propensity score from the intelligence pack.

Referral reward sizing

Use symmetric give-get amounts: $25/$25, $30/$30, $50/$50. Round numbers only — no $35 (looks algorithmic). Cap the give amount at 25-40% of avg ticket. For a $250 medspa, $25 give-get is ideal; for an $8 coffee shop, $5 give-get works.