Overview
The Referral Program is a powerful word-of-mouth marketing tool that rewards your existing customers for bringing in new customers. When customers share their loyalty card with friends and family, both the referrer (existing customer) and the new customer earn bonus rewards, creating viral growth for your business at minimal cost.
What the referral program does:
Existing customers share their loyalty card via unique referral links
Friends/family install cards using the referral link
Both the referrer and new customer earn bonus stamps or rewards
You acquire new customers through trusted recommendations
Creates viral growth through incentivized sharing
Key benefits:
Low-cost customer acquisition - No advertising spend needed
Higher quality customers - Referred customers have higher lifetime value
Built-in trust - Recommendations from friends carry more weight
Automatic viral growth - Satisfied customers become brand ambassadors
Trackable performance - Dashboard shows referral metrics and ROI
Before You Begin
Requirements:
Active Perkstar account
Loyalty card created or in progress
Understanding of your reward structure (stamps/points/bonuses)
Decision on referral bonus amounts for referrers and new customers
Important concepts:
Referrer - Existing customer who shares their card
New customer - Person who installs card via referral link
Referral bonus - Rewards given to both parties
Unique referral link - Each customer gets their own tracking link
Tip: Start with generous referral bonuses. The cost of acquiring a customer through referrals is typically much lower than traditional advertising, so you can afford to be generous.
Understanding How Referrals Work
The Customer Journey
Step 1: Existing customer shares card
Customer opens their loyalty card (Apple Wallet or Android)
Taps "Share Card" button
Chooses sharing method (text, email, social media, QR code)
Unique referral link is shared with friend
Step 2: Friend receives invitation
Receives message with card installation link
Link contains unique tracking code
Link identifies the referrer
Step 3: Friend installs card
Clicks referral link
Installs loyalty card on their device
System recognizes this as a referral installation
Step 4: Bonuses awarded (based on your configuration)
Option A: Bonus at card installation
Referrer receives bonus stamps immediately when friend installs card
New customer receives welcome bonus stamps upon installation
Instant gratification for both parties
Option B: Bonus at first visit/transaction
Referrer receives bonus when new customer makes first purchase
New customer receives bonus after completing first transaction
Ensures new customer is actively engaged (not just installed)
Step 5: Cycle repeats
New customer can now refer their own friends
Creates viral growth loop
Exponential programme expansion
Why Referral Programs Work
Customer psychology:
People trust recommendations from friends over advertising
Customers feel good sharing businesses they love
Rewards create additional motivation to share
Social proof drives conversions
Business benefits:
Referred customers spend 16% more than non-referred customers
Referred customers have 37% higher retention rates
Acquisition cost is 5-10x lower than paid advertising
Network effects create exponential growth
Configuring the Referral Program
Step 1: Navigate to Card Creation/Editing
To set up referral program:
Log in to your Perkstar account
From the left-hand menu, click the Cards icon
Create new card or edit existing card:
New card: Click "From Scratch" button (or choose template)
Existing card: Select card from list, click "Edit"
Step 2: Access Information Tab
Navigate to referral settings:
In the card creation/editing workflow, look at tabs at top of screen
Click the "Information" tab
Scroll to find "Referral Program" section
What you'll see:
Active/Inactive toggle
Bonus timing configuration
Referrer bonus amount
New customer bonus amount
Step 3: Activate Referral Program
Enable referrals for this card:
Locate "Referral Program" heading
Find radio buttons for Active/Inactive
Select "Active" to enable referral program
Select "Inactive" to disable (no referrals will work)
When to activate:
Default: Keep active (most businesses benefit from referrals)
Inactive: If you don't want word-of-mouth rewards
Can toggle on/off anytime
Warning: Referral program must be Active for share buttons to work and bonuses to be awarded.
Step 4: Choose When Bonuses Are Issued
Configure bonus timing:
Locate "Get bonus at the moment when" heading with dropdown or options.
Two timing options:
Option 1: Card is Installed (Immediate)
How it works:
Referrer receives bonus stamps as soon as friend installs card
New customer receives welcome bonus upon installation
Instant reward for both parties
Pros:
✅ Immediate gratification for referrers
✅ Encourages more sharing (quick rewards)
✅ New customers start with bonus (welcoming)
✅ Simple, easy to understand
Cons:
❌ Risk of gaming (people install but never visit)
❌ Rewards given to inactive customers
❌ Higher bonus cost if installs don't convert
Best for:
High-quality customer base (low fraud risk)
Strong installation-to-visit conversion rates
Want to maximize referral participation
Low-cost bonus items
Option 2: First Visit/Transaction (Activated)
How it works:
Bonuses awarded after new customer makes first purchase
Referrer gets reward when their friend actually visits and transacts
New customer receives bonus after completing first transaction
Pros:
✅ Ensures new customers are engaged (not just installed)
✅ Higher quality referrals (actual visitors, not just installs)
✅ Lower bonus cost (only pay for active customers)
✅ Proves value of referral
Cons:
❌ Delayed gratification for referrer
❌ New customer may forget bonus if delayed
❌ May discourage some sharing (longer reward wait)
Best for:
Want to ensure referral quality
Higher-cost bonus rewards
Conversion from install to visit is uncertain
Focus on active customers, not just installs
Tip: First visit/transaction is generally better for most businesses. Ensures referrals are actually valuable (active customers). Slightly lower participation but much higher quality.
Step 5: Set Stamps for Referrer
Configure reward for existing customer who shares:
Locate "Stamps count for referrer" heading
Use count icons or input field to set number
Enter number of stamps referrer earns per successful referral
How many stamps to give:
Conservative (1-2 stamps):
Low cost per referral
Modest incentive
May not strongly motivate sharing
Moderate (3-5 stamps):
Balanced incentive
Noticeable reward
Most common configuration
Generous (5-10 stamps):
Strong motivation to share
Significant reward
Higher cost but potentially higher participation
Note: Calculation example: If your card has 10 stamps = 1 free item. 1 stamp = 10% of free item (£0.30 if item costs £3). 3 stamps = 30% of free item (£0.90). 5 stamps = 50% of free item (£1.50). 10 stamps = full free item (£3).
ROI perspective:
Customer lifetime value: £200
Cost to acquire via ads: £20-50
Cost to acquire via referral (5 stamps = £1.50): Much cheaper!
You can afford to be generous
Recommendation:
Start with 3-5 stamps (30-50% of reward card)
Test and adjust based on participation rates
If referrals are slow, increase incentive
Track referral ROI in dashboard
Step 6: Set Stamps for New Customer
Configure welcome bonus for referred customer:
Locate "Stamps count for new customer" heading
Use count icons or input field to set number
Enter number of stamps new customer earns for signing up via referral
How many stamps to give new customers:
No bonus (0 stamps):
All incentive goes to referrer
New customer joins because friend recommended (trust, not reward)
Lowest cost
Small welcome (1-2 stamps):
Minimal cost
Shows appreciation for joining
Not strong enough to drive decision
Moderate welcome (3-5 stamps):
Makes new customer feel valued
Significant head start toward first reward
Balanced approach
Generous welcome (5-10 stamps):
Strong incentive to install card
New customer halfway (or more) to first reward
Encourages first visit
Higher cost but higher activation rate
Strategic considerations:
Give new customers MORE stamps if:
You want to encourage first visit (activation critical)
Install-to-visit conversion is low
Competitive market (need strong offer)
High customer lifetime value justifies upfront cost
Give new customers FEWER stamps if:
Referral quality is already high
Strong brand (people join without incentive)
Low margins (need to minimize costs)
Focus on rewarding referrers more than recruits
Recommendation:
3-5 stamps for new customers (30-50% toward reward)
Enough to feel meaningful but not full reward
Encourages them to visit to earn the rest
Balances cost with effectiveness
Example configurations:
Configuration 1: Generous for both
Referrer: 5 stamps
New customer: 5 stamps
High participation, high cost, strong viral growth
Configuration 2: Balanced
Referrer: 3 stamps
New customer: 3 stamps
Moderate cost, good results, most common
Configuration 3: Referrer-focused
Referrer: 5 stamps
New customer: 2 stamps
Rewards sharing behavior more than joining
Configuration 4: New customer-focused
Referrer: 2 stamps
New customer: 5 stamps
Attracts high-quality new customers, encourages first visit
Step 7: Save Configuration
Finalize referral programme settings:
Review all settings:
✓ Referral program: Active
✓ Bonus timing: Selected (card install or first visit)
✓ Referrer stamps: Set
✓ New customer stamps: Set
Click "Save" or "Next" (depending on workflow)
Complete rest of card creation if new card
Referral programme is now active
What happens after saving:
Share buttons appear on customer cards
Customers can immediately start sharing
System tracks all referrals automatically
Bonuses award based on your configuration
How Customers Share Cards
On iPhone (Apple Wallet)
Customer sharing process:
Customer opens loyalty card in Apple Wallet
Taps three-dot icon (⋮) in top-right corner
Selects "Pass Details"
Taps "Share Card" button
QR code and sharing options appear
Customer chooses sharing method:
Text message
Email
Social media (Facebook, Twitter, WhatsApp, etc.)
Show QR code in person
Copy link to clipboard
Friend receives message with unique referral link
System tracks installation back to referrer
What the shared content includes:
Your business name and logo
Invitation message (customizable in some systems)
Unique referral link with tracking code
Instructions to install card
On Android
Customer sharing process:
Customer opens loyalty card from home screen or Google Wallet
Taps "Details" button
From Details screen, taps "Share Card" button
QR code and social media icons appear
Customer chooses platform:
SMS/text
Email
Social media platforms
QR code display
Copy link
Friend receives referral link
Installation tracked to referrer
Platform options typically include:
WhatsApp
Facebook Messenger
Email
SMS
Instagram
Twitter
Copy link (paste anywhere)
QR Code Sharing
In-person sharing method:
Customer shows QR code on screen:
Friend scans QR code with phone camera
Opens installation link automatically
Installs card via referral
Both parties earn bonuses
Use cases:
In-person recommendations
Family/friends gathering
At your location (customer recruiting another customer)
Events or meetups
Understanding Referral Bonuses and Restrictions
When Bonuses Are Awarded
Based on your configuration:
If you selected "Card is Installed":
Bonuses awarded immediately upon friend's card installation
Referrer sees stamps added within minutes
New customer starts with bonus stamps
Fast reward cycle
If you selected "First Visit/Transaction":
Bonuses awarded after new customer's first purchase
Referrer receives stamps when friend completes transaction
New customer receives stamps after first transaction processes
Delayed but ensures activation
Important Restriction: Existing Customers
Warning: Referral bonuses only apply to truly NEW customers.
No bonus if:
❌ Referred person already exists in your system (has customer profile)
❌ They had a card previously (even if deleted)
❌ They're already registered under different card type (same business)
❌ They exist in your database
Bonus awarded if:
✅ Customer is completely new to your business
✅ No existing customer profile
✅ First-time card installation
✅ Never in your system before
Scope of "existing customer":
Within your business (subaccount):
System checks if customer exists anywhere in your business
Multiple locations under same business = one customer database
If they have card from Location A, can't get referral bonus for Location B card
Not across different businesses:
If customer has card from Coffee Shop A, can still get referral bonus for Coffee Shop B
Each business/subaccount has independent customer database
Why this restriction:
Prevents gaming the system (existing customers pretending to be new)
Ensures referral bonuses go to actual customer acquisition
Protects programme integrity
Focuses rewards on true new business
Customer communication:
Customers may not understand this restriction
Train staff to explain: "Referral bonuses are for new customers only"
Set expectations: "If your friend is already our customer, they won't receive the new customer bonus"
Monitoring Referral Programme Performance
Dashboard Metrics
Access referral data:
Navigate to Dashboard
Scroll to Referral Programme section
Select time period (Day, Month, Year, All Time, Custom Range)
Key metrics displayed:
1. Shared Cards
Number of times referral links were clicked
Shows reach and exposure
Indicates sharing activity level
2. Cards Installed by Referrals
Actual conversions from referral links
New customers acquired through referrals
Conversion rate = Installs ÷ Shares
3. New Referral Members
Referred customers who actually made visits/transactions
Active, engaged referred customers
Quality metric (not just installs)
4. Revenue from Referrals
Total purchase amount from referred customers
Direct financial impact
ROI calculation basis
5. Referral Programme Dynamic Graph
Performance over time
Day-by-day breakdown
Identifies trends and patterns
6. Top 10 Referrers
Most active customers by:
Number of successful referrals (visits)
OR Purchase amount of referred customers
Identify super-promoters
Reward top referrers with VIP treatment
Calculating Referral ROI
Formula:
Referral ROI = (Revenue from Referrals - Cost of Referral Bonuses) ÷ Cost of Referral Bonuses × 100%
Example calculation:
Your referral programme:
Referrer bonus: 5 stamps (worth £1.50 each)
New customer bonus: 3 stamps (worth £0.90 each)
Total bonus cost per referral: £2.40
Results in one month:
50 new customers via referrals
Total bonus cost: 50 × £2.40 = £120
Revenue from these 50 customers: £1,500
Net revenue: £1,500 - £120 = £1,380
ROI:
ROI = (£1,380 ÷ £120) × 100% = 1,150%
Interpretation:
For every £1 spent on referral bonuses, you earned £11.50 in revenue
Extremely profitable customer acquisition channel
Much better than paid advertising (typically 200-400% ROI)
Optimizing Your Referral Programme
Increasing Referral Participation
If referral rates are low:
1. Increase bonuses:
Make referrer reward more generous (5 → 7 stamps)
Strengthen new customer incentive (3 → 5 stamps)
Test higher rewards and measure impact
2. Promote the programme:
Train staff to mention: "Did you know you can earn rewards by sharing your card?"
In-store signage: "Refer a friend, both get rewards!"
Email campaigns highlighting referral benefits
Social media posts about referral programme
3. Make sharing easier:
Ensure share button is easy to find
Test sharing flow yourself
Simplify instructions for customers
Provide sharing tips to customers
4. Remind customers:
Send push notifications: "Share your card with friends—both earn rewards!"
Email reminders about referral programme
Receipt mentions of referral opportunity
Improving Referral Quality
If you're getting installs but not visits:
1. Change bonus timing:
Switch from "Card Installed" to "First Visit"
Ensures bonuses go to active customers only
Improves referral quality
2. Increase new customer bonus:
Stronger welcome reward encourages first visit
If new customers get 2 stamps, try 5 stamps
Reduces friction to first transaction
3. Follow up with referred customers:
Send welcome email/SMS after installation
Remind them of their bonus stamps
Encourage first visit with time-limited offer
4. Improve onboarding:
Clear instructions on how to use card
Explain programme benefits
Make first visit as smooth as possible
Recognizing Top Referrers
Reward your brand ambassadors:
1. Monitor Top 10 list:
Check Dashboard → Referral Programme → Top 10
Identify customers who refer most actively
2. Provide special recognition:
Personal thank-you message
Exclusive VIP perks
Extra bonus for reaching referral milestones
Social media shout-out (with permission)
3. Create referral tiers:
5 referrals: "Ambassador" status
10 referrals: "Super Ambassador" status
Special rewards at each tier
4. Encourage continued sharing:
"You've referred 8 friends! 2 more for a special reward"
Gamification increases participation
Best Practices
Setting Optimal Bonuses
Guidelines for bonus amounts:
Start generous:
Referral acquisition is cheaper than ads
You can afford to reward both parties well
3-5 stamps per party is good starting point
Test and adjust:
Try different bonus levels
Measure participation and ROI
Optimize based on your specific business
Consider profit margins:
High-margin businesses (coffee, pizza): Be generous (5-10 stamps)
Low-margin businesses: Moderate bonuses (2-5 stamps)
Calculate exact cost vs. customer lifetime value
Balance fairness:
Don't make bonuses so small they feel insulting
Don't make so large you lose money
Sweet spot: Meaningful to customer, profitable for you
Communication Strategy
Educate customers about referrals:
At signup:
"You can earn rewards by sharing your card with friends!"
Explain how it works briefly
In-store:
Staff mention: "Refer friends and both get bonus stamps"
Table tents or signs with QR code
Receipt reminders
Digital:
Email campaigns highlighting referral benefits
Push notifications with sharing prompts
Social media posts explaining programme
Troubleshooting Common Issues
"Why didn't my customer get the referral bonus?"
Check:
Is referral programme Active in card settings?
Did friend already exist in your system?
Was friend truly new customer (not existing)?
If bonus timing is "First Visit," has new customer made purchase yet?
Did friend actually install via referral link (not generic link)?
"Customers don't know how to share"
Solutions:
Create simple instruction card/poster
Train staff to demo sharing process
Send email/SMS with sharing instructions
Video tutorial on social media
"Low referral participation"
Diagnose:
Are bonuses attractive enough?
Do customers know about programme?
Is sharing process too complicated?
Are customers satisfied enough to refer?
Actions:
Increase bonuses (test higher rewards)
Promote programme more actively
Simplify sharing if possible
Focus on customer satisfaction first (happy customers refer)
Frequently Asked Questions
Can I have different referral bonuses for different card types?
Yes, referral settings are configured per card. If you have multiple cards (locations, tiers), each can have different referral bonuses.
Can a customer refer unlimited friends?
Yes, there's typically no limit. Customers can refer as many friends as they want and earn bonuses for each successful referral.
What happens if someone installs via referral but already has an account?
No bonus is awarded. The system detects existing customer and doesn't give referral bonuses (prevents gaming).
Can customers see how many friends they've referred?
This depends on your platform. Some systems show customers their referral count in their profile or card. Check your interface or ask support.
Should referral bonuses be the same for referrer and new customer?
Not necessarily. Common strategies: (1) Equal bonuses (fairness), (2) Higher for referrer (reward sharing behavior), (3) Higher for new customer (attract quality customers). Test what works for you.
Can I change referral settings after launching?
Yes, edit your card and adjust referral settings anytime. Changes apply to future referrals immediately. Past referrals use old settings.
What if a customer uninstalls and reinstalls via referral link?
If they already exist in your system, no referral bonus (they're not a new customer). Prevents gaming.
Do both customers need to have cards installed for bonuses to work?
Yes, referrer must have card installed to share. New customer must install to receive bonus. Both need active cards.
Can I disable referral programme temporarily?
Yes, set to "Inactive" in card settings. Share buttons will no longer appear and no bonuses will be awarded. Re-enable anytime.
How do I know if referral programme is worth it?
Calculate ROI: Compare revenue from referred customers to cost of bonuses. Most businesses see 500-1500% ROI on referrals, far exceeding paid advertising.
Tip: Need help with your referral programme? Contact support for assistance with configuration, optimization strategies, or troubleshooting referral bonus issues.