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A referral program is a marketing strategy that rewards existing customers when they recommend a company’s products or services to their network, thereby encouraging the acquisition of new customers. Referrers typically receive benefits such as gifts, discounts, loyalty points, or a cash reward, while referred customers also receive incentives to facilitate their participation. This mechanism fosters a win-win relationship, reduces customer acquisition costs, and contributes to referrer loyalty. The balance of rewards must be carefully considered to maintain the program’s profitability.

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