How to Build a Referral Program That Actually Works

Arjun Vijayan15 January 2024

How to Build a Referral Program That Actually Works

Most referral programs fail. Not because referrals don't work — but because the programs are designed wrong.

The Problem with Traditional Referral Programs

Traditional referral programs assume customers will:

  1. Open their email
  2. Copy a referral code
  3. Send it to friends via... email?

In India, this flow is broken from step one. Your customers live on WhatsApp.

WhatsApp-First Referral Design

Here's what actually works:

1. One-Tap Sharing

The share button should open WhatsApp directly with a pre-filled message. No copying, no friction.

2. Auto-Apply Discounts

When the friend clicks the link, the discount should auto-apply at checkout. No codes to remember.

3. Instant Gratification

Cashback works better than discounts. Store credit works better than percentage off. Make the reward tangible.

Common Mistakes to Avoid

  • Hiding the referral program: Put it post-purchase, not buried in account settings
  • Weak rewards: 5% off isn't compelling. ₹100 cashback is.
  • No tracking: If you can't measure it, you can't improve it

Next Steps

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