Referral programs turn customers into advocates by rewarding them for successful introductions to new customers. Referral program structure: - Advocate: Existing customer who refers - Friend: New customer who is referred - Reward: Incentive for successful referral - Tracking: Unique links or codes Common reward structures: - Give $X, Get $X (both parties rewarded) - Points or store credit - Free products - Percentage discounts - Cash rewards Referral program metrics: - Referral rate: % of customers who refer - Conversion rate: % of referrals who purchase - Viral coefficient: Referrals per customer - CAC of referred customers Best practices: - Reward both advocate and friend - Easy sharing (one-click) - Multiple share channels - Clear tracking and attribution - Timely reward fulfillment