This is slightly different but I had a 5% referral program. Did it for 30 years. Alice refers Betty to me. Betty buys a $150 cake. Alice earns $7.50 toward her own cake. Alice could use it against a cake or save up referrals to apply to one cake that is totally free down the road.
One guy asked me, "You mean if I referred enough biz to you to earn $2000, then you'd do a thousand dollar event for free?" I said, "Yep! Because for you to earn $2000, that means you referred $40,000 in biz to me. And doing $2000 for free as a thank you is worth it to me!"
It turns every customer into a salesman for you. they are out there scounging up customers for you. With doing catering, my brides earned about $150 or more with each referral. Had one bride earn a free wedding cake 'coz she sent me 3 brides from the Knot. She sent me over $6000 in biz; I did a $300 cake for free (which actually only "cost" me around $100). I spent $100 ..... got $6000 in return. pretty cool deal! 
Here are a few testimonials about how the program works: http://cakecentral.com/cake-decorating-ftopict-423103-referral.html
Indydebi, your loyalty program sounds fantastic and is something I would like to copy (if that is ok with you). I need to think about this and set boundaries, then roll out for myself.
Can I just check please - was the 5% reward only applicable to the first order by the new customer that the current customer referred to you? Thanks for helping. I've been a lurker in this forum and find the info shared here so helpful.
In my thank you notes for my larger cake customers I include a 5% off card for a future order, 1 for them & 1 to share. I have gotten a few referals from them.
In my thank you notes for my larger cake customers I include a 5% off card for a future order, 1 for them & 1 to share. I have gotten a few referals from them.
Hi Amy, can you explain what you mean by "1 for them and 1 to share" please? I understand the 5% off voucher/coupon for a future order part 
, just unsure about the 'share' part.
Indydebi, your loyalty program sounds fantastic and is something I would like to copy (if that is ok with you). I need to think about this and set boundaries, then roll out for myself.
Can I just check please - was the 5% reward only applicable to the first order by the new customer that the current customer referred to you? Thanks for helping. I've been a lurker in this forum and find the info shared here so helpful.
Alice referred Bettty. Betty spent $300. Alice earned $15. Betty orders another cake 2 months later. Alice gets nothing for that one because Betty is a returning customer, no longer a referred customer.
good question!
In my thank you notes for my larger cake customers I include a 5% off card for a future order, 1 for them & 1 to share. I have gotten a few referals from them.
Hi Amy, can you explain what you mean by "1 for them and 1 to share" please? I understand the 5% off voucher/coupon for a future order part
, just unsure about the 'share' part.
In the note I thank them for thier business, give the web address for reviews and say something along the lines of "the best compliment you can pay me is to recommend me to your friends & family" and I include 2 5% cards (basically a business card with the promo on back). I am a small one woman cake studio so I usually know if 1 of those coupons coming back to me is from a previous customer or a refereal.
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