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Definition

Referral program

A referral program incentivizes existing guests to bring in new ones, usually by rewarding both the guest who refers and the friend they send.

A referral program is a give-and-get: a happy regular shares a code or link, the new guest gets a first-visit perk, and the referrer earns a reward once that friend redeems. It turns your most valuable asset, guests who already love the place, into an acquisition channel that is cheaper and higher-converting than paid ads, because a personal recommendation carries trust an ad cannot buy.

It works especially well for restaurants because dining is social, and it compounds with a Loyalty program: your enrolled members are exactly the people most likely to refer. The discipline is attribution and margin. You need to track who referred whom so the reward is fair, and you need to size the incentive so it wins a new guest without giving away the visit at a loss on a thin 3-5% net margin.

Loyalty and marketing platforms (Marsello, Thanx, TapMango) build the referral mechanics, issue trackable codes, and release the reward automatically on redemption. Feed the result into First-party data so a referred guest becomes a measured, repeatable one. See loyalty and retention.

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Referral program (definition) | TableMagic