23 Best Refer-a-Friend Program Examples to Boost ROI in 2025

Understanding Refer-a-friend Programs

Referral programs can drive quality acquisition and increase lifetime value. But what are they? How do they work? This page will explain everything you need to know about refer-a-friend programs and how they can boost ROI.

What is a Refer-a-Friend Program?

One of the easiest types of referral marketing is a refer-a-friend program. It encourages your current customers to invite friends, relatives, or co-workers to your business as a reward for discounts, freebies, or promotions.

Importance of Referral Marketing

Referral marketing leverages the inherent trust people place in recommendations. It's a word-of-mouth solution enhanced by formal reward programs, so that businesses gain by turning loyal customers into ambassadors for their brand.

Benefits to Businesses

Low-cost customer acquisition: Referral programs provide quality leads at a fraction of the cost of traditional advertising.

Builds trust and loyalty: Recommendations come with a credibility that translates into more concrete relationships with new customers.

Scalable growth: Every new customer acquired by referrals can also refer more customers, generating a self-sustaining cycle of growth.

The ROI Power of Refer-a-Friend Programs

As opposed to paid media campaigns, which will deliver short-term traffic or fleeting engagement, referral programs bring high-quality leads from a source you can rely on—your existing customers. When a person refers your brand to a friend, they become ambassadors, championing your product or service. This element of trust translates to increased conversion rates and, more importantly, loyalty from new clients.

To make this case even stronger, consider the following data:

• 92% of consumers trust referrals from people they know over traditional advertising (Nielsen).
• Referred customers have a 37% higher retention rate compared to non-referred customers (Deloitte).
• Referral marketing delivers up to x2 higher customer lifetime value on average (Mention Me).

These figures aren’t accidental—they highlight the inherent power of referrals to create long-lasting, profitable connections.

Cost-Effective and Scalable

Referral programs are cost-effective because they leverage your existing customers to do work for you. Stop paying for expensive ad impressions or clicks that may never convert. Here’s how referral can cut costs:

• Rewarding a happy customer costs far less than acquiring a new one through paid channels.
• The scalability of referral marketing means that as your customer base expands, so does your potential group of advocates.

Marketers, consider this — each of your customers can become a micro-influencer for your brand, at a fraction of the cost of traditional marketing campaigns.

A Real-World Look

Imagine spending £500 on a referral campaign compared to £5,000 on a social media advertising blitz:

• Your £500 referral budget incentivizes existing customers for their successful referrals, directly connecting your marketing expenses to actual conversions.
• In contrast, traditional ads might require thousands for testing creative content, audience targeting, and boosting posts, all without any guarantee of success.

Here’s a simple chart to illustrate this ROI comparison:

Persuasive and Engaging for Long-Term Growth

Beyond cost savings and quality acquisition, refer-a-friend programs build a sense of community and exclusivity around your brand. When customers feel valued and incentivised to share your brand with their network, they buy into a deeper connection.

• Stronger Brand Loyalty – Customers who participate in referral programs feel more connected to your brand and are likely to become repeat buyers.
• Organic Growth Loop – Referral marketing creates a self-sustaining growth loop. New referred customers bring in others, compounding your results over time

23 Best Refer-a-Friend program Examples 

Referral programs are a powerful tool for marketers aiming to boost customer acquisition and retention. When done right, they not only drive revenue but also create meaningful connections between your brand and your customers. 

To inspire your next campaign, here are 13 of the most successful refer-a-friend program examples in the health and beauty industry. 

1. Glossier

Incentives

• Referrers get £10 store credit for every friend who makes a purchase. 
• Referees receive 10% off their first order. 

Referral Process

• Customers generate a unique referral link directly from their account. 
• They share this link with friends via email, social media, or text. 

Results

Glossier attributes a significant portion of its growth to its referral program, tapping into its loyal customer base. This strategy helps increase customer lifetime value while fostering community loyalty. 

 2. Drunk Elephant 

 Incentives

The referrer gets £20 off their next purchase for every successful referral. 

The referee receives 20% off their first order. 

Referral Process

Users share a pre-generated referral link, available via the website or app. 

Discounts are applied automatically when the referee shops through the supplied link. 

Results

Drunk Elephant’s referral program has strengthened its direct-to-consumer model, increasing repeat purchases and minimising acquisition costs.

 3. The Body Shop

Incentives

£5 off for both the referrer and the referee on their next purchase. 

Referral Process

Online shoppers are prompted to invite friends during the checkout process. 

Once the friend makes a qualifying purchase, both parties receive their rewards. 

Results

By coupling referral rewards with their eco-conscious branding, The Body Shop attracts customers who are aligned with their mission, further enhancing retention rates. 

 4. Charlotte Tilbury 

Incentives

Referrers get £20 off the next order over £100

Referees enjoy £20 off their first order. 

Referral Process

Customers log into their account and share their unique referral code. 

Rewards are automatically applied after their friend's purchase is complete. 

Results

This refer-a-friend promotion has built strong word-of-mouth buzz, significantly growing its customer base within a competitive beauty landscape.

 5. Huda Beauty

Incentives

Referrers get 20% off the next order.

Referees get 20% off their first order of $100 or more.

Referral Process

Users are given referral links they can share online or offline. 

Once the new customer completes checkout, a reward is added to the referrer’s account. 

Results

Huda Beauty leverages its loyal fan base to amplify their reach, successfully driving organic acquisition through personal referrals. 

 6. Rituals

Incentives

Give £10, get £10 on orders over £50. 

Referral Process

Customers engage in the program through their account dashboard. 

Rewards are distributed once referral conditions (e.g., order minimum) are met. 

Results

This refer-a-friend campaign aligns perfectly with Rituals' luxury positioning while offering real value—building both exclusivity and accessibility for new and existing customers alike.

 7. Sephora 

Incentives

Referrers earn 500 loyalty points per successful referral. 

Referees get £10 off their first purchase. 

Referral Process

Members of Sephora’s loyalty scheme use referral links to invite friends. 

Points are credited to referrers upon successful referrals. 

Results

By integrating the referral program into their loyalty system, Sephora encourages repeat purchases while rewarding brand advocates with valuable perks. 

 8. Function of Beauty 

Incentives

£5 off for the referee. 

£5 off for the referrer for every successful referral. 

Referral Process

After customising a formula, customers are given a referral code to share. 

Discounts are applied when a referee completes their purchase. 

Results

The program enhances customer loyalty while encouraging sharing among Function of Beauty fans who already love the ultra-customised experience. 

 9. Fenty Beauty 

Incentives

Referrers get 10% off for every successful referral. 

Referees receive 10% off their first order. 

Referral Process

Links and discount codes are generated through their user profile page. 

Referees claim their offers at checkout. 

Results

The simplicity and inclusivity of Fenty Beauty’s referral offer resonate with its diverse customer base, contributing to its rapid growth.

10. Lush

Incentives

Referrers are given a complimentary product when the referee spends over £25.

Referral Process

Customers send a unique referral code via email or social.
Rewards are sent after a referral purchase is verified.

Results

Lush maintains the personal touch with its audience, using referrals to communicate its ethical mission easily with new customers.

11. GLOSSYBOX

Incentives

Referrers receive £5 credit towards their next box.

Referees receive £5 off their first box.

Referral Process

Invite a friend directly through the subscription dashboard.

Credits are applied automatically after confirmation of payment.

Results

GLOSSYBOX's referral program sustains their subscription business model while generating steady customer satisfaction rates.

 12. Kiehl’s

Incentives

Referrers earn points for every referral. 

Referees get 15% off their first order. 

Referral Process

A simple referral dashboard allows customers to send invites via email or social media. 

Results

Kiehl's leverages the referral program to boost traffic and engagement to its direct-to-consumer e-commerce store. 

 13. Tatcha 

Incentives

Referrers earn $20 towards any Tatcha purchase. 

Referees earn a $20 new customer discount on orders over $100.

Referral Process

A referral dashboard generates custom links for customers. 

Rewards are credited instantly after a successful referral. 

Results

Tatcha’s referral program helps it reach a premium audience while strengthening satisfaction and loyalty among its high-value customers.

14. Airbnb

Incentives 

Referrers and referees can earn travel credits. Typically, referees get a discount on their first trip, while referrers receive credits to apply to future stays.

Referral Process 

Users share referral links via email or social media. 

When a new user signs up and completes their first trip or host booking, rewards are granted.

Results 

Airbnb built a strong community-driven growth model with their referral program, significantly contributing to its global expansion. Its dual rewards system encourages ongoing engagement from travellers and hosts alike.

15. Dropbox

Incentives 

Both the referrer and referee gain extra storage space—up to 16 GB for the referrer.

Referral Process 

Users access their referral links through Dropbox's dashboard. 

When a referral signs up and installs Dropbox, the bonus storage is automatically added to both accounts.

Results 

Dropbox grew its user base by 3900% within 15 months. By gamifying its referral program with storage rewards, it catered to the practical needs of its users.

16. Uber

Incentives 

Referrers receive ride credits for sending new users to the platform. The referee also gets a discounted or free ride upon joining.

Referral Process 

Referrers share their unique invite code via the app. 

Rewards are applied once the referee completes their first ride.

Results 

Uber effectively capitalised on word-of-mouth with this program, helping it dominate markets by encouraging users to invite their friends for mutual benefits.

17. Evernote

Incentives 

Referrers earn points redeemable for premium features, and referees enjoy free access to a Premium trial.

Referral Process 

Existing users share referral links. 

Points are credited once the referee signs up and utilises Evernote.

Results 

Evernote's referral program nurtured loyalty and expanded its premium subscription base without relying on traditional advertising.

18. ASOS

Incentives 

Referrers and referees each gain a 20% discount, powered by Mention Me.

Referral Process 

Customers share referral codes or links via the ASOS app or website. 

Once the referee makes an eligible purchase, both parties receive the reward.

Results 

ASOS taps into its youthful audience’s social sharing habits, combining fashion and savings to drive consistent engagement.

19. Peloton

Incentives 

Referrers earn £100 towards accessories or apparel, while referees may receive a discount on their first purchase.

Referral Process 

Existing Peloton members share referral codes. 

After a successful referral, rewards are applied to the accounts of both the referrer and the referee.

Results 

Peloton's referral program leverages its passionate user base, encouraging members to share their fitness enthusiasm while boosting brand loyalty.

20. Amazon Prime

Incentives 

Existing Prime members earn £5 account credits for each successful referral. Referees can trial Prime for 30 days, free of charge.

Referral Process 

Prime members share referral links directly. 

The referee activates their trial via the shared link.

Results 

The program nurtures interest in Prime membership by turning subscribers into advocates, contributing to Amazon's customer acquisition and retention goals.

21. BarkBox

Incentives 

Referrers earn $20 worth of BarkBox credit. Referees receive free Double Deluxe upgrade on their first box.

Referral Process 

Existing subscribers share referral links with dog-loving friends. 

Rewards are distributed once a referee subscribes.

Results 

BarkBox engages its niche audience by combining cute visuals with attractive discounts, amplifying its referral metrics.

22. Stitch Fix

Incentives 

Referrers and referees each receive £15 off their next purchase.

Referral Process 

Customers are provided with referral links via their Stitch Fix account. 

Upon a successful referral, rewards are credited to both parties.

Results 

Stitch Fix builds strong loyalty among fashionistas, encouraging happy clients to spread the word in exchange for continued savings.

23. Revolut

Incentives 

Participants can earn up to £20 for successful referrals, depending on the promotion.

Referral Process 

Users share referral links easily via the app. 

Referees must meet specific criteria, such as registering, verifying their account, and completing a transaction, to trigger rewards.

Results 

Revolut’s referral program plays a core role in its rapid growth strategy, turning everyday users into effective brand ambassadors.

Tips for Creating an Effective Refer-a-Friend program

Imagine this scenario: Your customers love your product so much they can’t stop talking about it. Better yet, for every friend they bring in, you’re seeing high-quality conversions roll in without stretching your ad spend. That’s the power of a well-run refer-a-friend program, a tool that savvy marketers know is not just nice-to-have, but a must-have.

Creating an effective referral program requires art and strategy. Today, we’ll explore key steps to building one that drives predictable growth while fostering brand loyalty.

Key Elements to Consider

Before jumping in, nail down the basics of your referral marketing program. Each element needs to work together seamlessly for it to succeed:

• Clarity: Your program must be easy for participants to understand and, more importantly, share.
• Measurement: Establish KPIs—how will you measure success? Are you looking for sign-ups, purchases or sustained engagement? Define your version of success.
• Tools & Integration: Choose platforms that can integrate with your existing tech tools without a headache. This could mean CRMs, email systems, or even custom dashboards.

Be sure your program design answers a vital question for both you and your customers—“What’s in it for me?”

Targeting the Right Audience

Not all customers are created equal. Some are hyper-engaged and would happily shout about your brand without incentives, while others may require a nudge.

Here is how you can make your program visible to the right individuals:

• Segment Your Current Audience: Who are your best customers by purchase frequency, average order value, or Net Promoter Score (NPS)? They are your advocates.
• Pain Points: Why would your customers recommend your business? Addressing a pain point for them also creates advocacy.
• Use Your Channels Wisely: Reach various groups through particular channels—email marketing to current customers, for example, or social media to a younger crowd.

Pro Tip: Excellent targeting tactics won't assist even the most skilled marketers in transforming referrals into genuine gains in case the messaging isn't right. Steer clear of overly broad campaigns and make your messaging engaging by making it personal.

Designing Reward Structures

The incentive model is the pulse of every referral program. It dictates the excitement for both advocates and referred friends. Lose the incentives, and your program will feel underwhelming—or worse, insincere.

• Mutual Incentives: Make it a win-win situation for all parties. An example? "Give £10 and get £10"—where both the referred friend and advocate are rewarded.
  
  
• Exclusive Offers: Generate hype by giving them rewards they can't find anywhere else, whether that's first dibs on a product or an inside look at a new service.
  
  
• Tiered Rewards: Want repeat play? Provide tiered rewards! For instance, a customer receives an additional perk after referring three or more individuals.

Think not just in terms of dollar value but also in terms of experiences. These could be VIP memberships, priority access, or branded items that reaffirm your value as a business.

Maintaining Brand Integrity

Your referral program is a representation of your brand—with each touchpoint communicating who you are. Inconsistent messaging or shoddy visuals may erode trust before your advocates have even shared your brand with their network.

• Tone of Voice: Keep your referral messaging on brand with the overall messaging for your brand. If you're playful, keep it playful. If you're professional and minimalist, ensure every aspect of the program, including landing pages and emails, expresses that.
  
  
• Visual Identity: Your referral portal, landing pages, and promotional collateral need to be like they're part of the brand. Avoid generic templates whenever possible.
  
  
• Transparency Matters: Provide no room for doubt in the process—be affirmatively clear regarding what the participant will receive and when they'll receive it.

Consistency is trust. Marketers understand that trust sells more than any pushy CTA is ever likely to.

Strategies for Success

Referral programs offer an affordable, sustainable, and highly effective customer acquisition method that makes them vital to growth-driven businesses.

However, to get the most out of referral marketing's strength, you need to know what they do best and, more importantly, how to best optimize them.

Actionable Tips to Boost Your Referral Program

The most successful referral marketing programs are strategic, systematic, and customer-focused. Use the following actionable tips to get your program to the next level:

• Set Clear Goals: Determine what you wish to accomplish—whether it's accelerating customer acquisition, brand loyalty, or reducing customer acquisition cost.
  
  
• Simplify the Process: Keep the user experience (UX) simple. Your customers must be able to refer in three clicks or fewer. Eliminate all points of friction like lengthy forms or confusing instructions.
  
  
• Offer Personalized Content: Utilize data-driven insights to craft referral messages that reflect your users' behavior and needs. A personal touch can really drive participation rates up.
  
  
• Measure Success Carefully: Employ key performance indicators (KPIs) such as referral rate, customer lifetime value, and conversion rate to assess your program's success and determine areas of optimization.

Pro Tip: Bookmark our next blog on Creating a Winning Referral Marketing Strategy for advanced referral marketing techniques for long-term success.

Simplifying the Process

Complexity kills momentum. A referral program with too many steps will frustrate your users, causing drop-offs. Here's how to simplify the experience:

• Automated Reminders: Nurture your advocates by leveraging automated follow-ups to remind them to make referrals.
  
  
• Mobile-First Design: Optimize your referral platform for mobile, where the majority of users start their interactions.
  
  
• Integrated Sharing Options: Simplify sharing referrals with one click via email, social media, or messaging apps.

Offering Valuable Rewards

An attractive reward system is at the heart of any effective referral program. Offer rewards that resonate with your audience, and try the following techniques:

• Monetary Incentives: Money, discounts, and gift vouchers are still one of the strongest incentives. For instance, Dropbox increased users by 3900% by providing additional storage to referrers and referees.
  
  
• Tangible Goods & Experiences: Special merchandise, tickets to marquee events, or subscription upgrades can actually motivate your audience.
  
  
• Reciprocal Incentives: Make sure both the referrer and the referee are rewarded; this doubles the incentive while building trust and goodwill.

Using Psychology Techniques

Knowing consumer psychology can take your referral programs to the next level. Apply influence principles like Cialdini's 6 modes of influence, ranging from reciprocity to authority. Some tactics include:

• Scarcity: Provide the incentive for a limited period of time to create urgency.
  
  
• Social Proof: Include referral program testimonials or highlight top referrers on your website to establish trust.
  
  
• Commitment and Consistency: Prompt small initial steps—such as emailing a share—to incrementally gain confidence in referring larger deals.

If you'd like to know more about referral psychology, check out our blog on The Psychology of Referral for a more detailed explanation of Cialdini's principles.

Boost Your ROI with a Refer-a-Friend Program

At its core, a successful referral program isn't just a growth hack; it's a way of enabling meaningful connections between your brand and customers. By simplifying processes, offering the right incentives, and leveraging psychological drivers, marketers can get the most out of their program.

And remember—referral marketing is not a "set it and forget it" strategy. Continuous optimization, A/B testing, and feedback from customers will have your program evolving alongside your audience.

Ready to boost ROI through the power of referral? Speak to a referral expert today.