A referral code is a unique ID given to participants in a refer-a-friend program. It can be a customer’s name, alphanumeric characters, or words, depending on the referral software used. These codes are used to track and calculate the impact of brand advocates and provide them with rewards. By automating the referral process and tracking program steps, referral codes make the process efficient for everyone involved. They ensure that referrals and existing customers easily receive their rewards, promoting a positive experience and encouraging word-of-mouth marketing.

Profitable partnership, business partners cowork

When customers join the program, they are immediately assigned referral codes, which are used to track and connect each step, from referral submission to purchase. The codes automatically allocate program rewards to customers and referrals.

Here are some tips for creating referral codes:

  • Keep the codes unique and short.
  • Avoid confusion caused by similar characters like “O” and “0,” as well as “l” and “I.”
  • Allow personalized and customized codes to foster a sense of personalization.

To create multiple referral codes, an interactive referral program can be used. Let’s consider an example of a mobile food delivery business. If customers have been promoting the app to their friends and acquaintances, implementing a referral program can further maximize its benefits. For instance, offering a free meal to customers who refer new customers and to the referred customers with their first order can incentivize referrals.

Here’s an example scenario: Mark, a customer, shares his referral code with his colleague, Stan, who downloads the app, orders a pizza, and uses Mark’s referral code at checkout. The referral marketing software identifies Mark’s referral ID and rewards both Stan and Mark accordingly.

Using a referral code involves the following steps:

  • The customer receives an assigned code.
  • The customer shares their referral code with prospective customers.
  • The codes are collected and linked to the individuals who shared them. Tracking can be done through cookies, links, or referral marketing services.

Implementing a well-designed referral program with valuable referral codes is essential for running a successful business. These codes serve as powerful tools to increase your consumer base and promote your business to prospective customers through word-of-mouth marketing. By rewarding diligent referrers accurately, referral codes help build and strengthen brand loyalty.

Refer a friend concept with cartoon hands holding a phone with a button for the referral program.

In conclusion, referral codes play a vital role in effective referral marketing strategies. They streamline the process, automate tracking, and ensure that both referrers and new customers receive their rewards promptly. By leveraging referral codes, businesses can harness the power of customer advocacy and word-of-mouth advertising to drive growth and success.

Remember, a well-executed referral program with unique and compelling referral codes can significantly contribute to the success of your business by expanding your customer base, fostering brand loyalty, and generating positive brand awareness.

Safe food delivery order and receive


Now, Mark is your customer, and she always orders food using your app. He mentioned your business to his colleagues, and now they are ready to try it. Mark goes to his account, copies his referral code, and sends a message to his colleague, Stan, telling him to use this referral code for the free meal. Stan downloads the app, orders himself a pizza, and uses Mark’s referral code at checkout. The software that handles your referral marketing program identifies Mark’s referral ID and adds free meals to both Stan’s first order and Mark’s next one. This is how it works and benefits your existing and new consumers.

Using a referral code:

Since you are now familiar with how it works, let’s understand it in detail:

1. First, your customer is assigned a code 

First of all, the person who refers to your business in the future is assigned a code. Several brands give the same code to each and every referrer, but organizations that want to reward individuals should keep track of referrals. Hence, they assign a unique code to a single individual. However, you should also provide a unique code to your referrers if you’re keen to give rewards on each referral. 

2. You must get those codes shared 

The second step is compelling your partners or customers to share their referral codes with prospective customers. However, you must decide on how you to share it with them. With the advent of cheap internet, sharing and communicating have become very easy. Your customers can share their codes via social media posts, email, or texts, etc. However, if there are influencers involved in making referrals, you should have a code with their name in it. This will help them share their codes with their followers, and the followers will use the services or the products referred to them by their favorite influencer. 

3. You should gather the codes back and link them  Since you have circulated the codes nicely, you must now be prepared to get those codes back and link them to the individual that shared them in the first place. You can depend on cookies and links to track these codes if you have an online business. You can also make your own page, which can be used mainly for tracking these codes. However, there are thousands of referral marketing services offered online. You can purchase one and integrate it with your business. It will make the process of a referral manageable, smooth, and absolutely flawless.

Happy friends celebrating event together

Wrap Up 

You must have a referral program that offers valuable referral codes if you want to run a business successfully. Referral codes let you increase your consumer base and help in the subtle marketing of your business to prospective customers. They make sure that you reward every hard-working and commendable referrer without any inaccuracy, thus increasing brand loyalty as well.