Designing Referral Systems
Referral systems are of two types:
Forward-only reward: If a prospect referred by your customer takes a desired action
(an actual sale or signing for a trial), then only the prospect gets a reward for the transaction. The reward for the customer could be intangible - "positive feeling of doing good".
Both-way reward: If a prospect referred by your client takes a desired action (an actual sale or signing for a trial), then your customer as well as the propect - both get rewarded for the transaction.
Rewards in case of referrals could be in multiple forms - digital or physical or even intangible such as social recognition:
Discount on the normal price.
More of a product at the same price - subscription period, more storage space, premium features unlocked, etc.
Free complimentary product along with the core product at the same price.
Digital vouchers along with the main product at the same price.
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