Referral Programme
A structured system where you reward existing customers for recommending your business to new customers. Instead of leaving word of mouth to chance, a referral programme gives your customers a reason and an easy way to send work your way. With WOM, you can set up a referral programme in minutes — with a branded referral page, tiered rewards, and automatic tracking.
Referral Page
A branded page for your business where customers can submit referrals. They fill in their own details and the details of the person they're referring. WOM then sends a consent email to the lead and tracks the whole process automatically. No more asking "how did you hear about us?" and getting vague answers.
Advocate
A customer who actively recommends your business to others. In a referral programme, advocates submit referrals through your referral page and earn rewards when their referrals convert into paying customers. Your best advocates are often your longest-standing and most satisfied customers.
Reward Tier
A level in a referral programme where the reward increases as a customer refers more people. For example, the first referral might earn £20, the third might earn £30, and the fifth might earn £50. Tiers encourage repeat referrals and make your most active advocates feel valued. WOM lets you set up custom reward tiers in minutes.
Word of Mouth Marketing
When customers recommend your business to others through conversation — online or in person. It's the oldest and most trusted form of marketing. Nielsen research shows 88% of consumers trust recommendations from people they know above all other channels. A referral programme turns word of mouth from something that happens randomly into something you can track and measure.
Referral Conversion Rate
The percentage of referred leads who become paying customers. A high conversion rate means your referral programme is attracting the right people. Research shows referred leads typically convert at a 30% higher rate than leads from other channels — because they already trust you before they get in touch.
Referral Incentive
The reward offered to a customer for successfully referring someone to your business. Common incentives include cash, discounts on future work, gift cards, or free services. The best incentive is one that motivates your customers without cutting too deep into your margins.
Two-Sided Referral
A referral programme where both the person referring and the new customer receive a reward. For example, the referrer gets £20 and the new customer gets 10% off their first job. Two-sided referrals tend to perform better because both parties have a reason to participate — the referrer isn't just doing you a favour, they're giving their friend a deal.
GDPR & PECR Consent in Referrals
Under GDPR and PECR, you need consent before contacting someone who has been referred to you, sending them electronic communications, or storing their personal data. This means the referred person must agree to be contacted before you reach out. Good referral software builds consent collection into the process automatically, so you stay compliant without extra admin.
Referral Tracking
The process of recording and monitoring referrals — who referred whom, when, and whether the referral converted into a paying customer. Without tracking, you're relying on customers to tell you how they found you, which is unreliable. WOM handles referral tracking automatically — every referral submitted through your page is logged and attributed to the right advocate.
Ready to put these terms into practice?
WOM gives you everything in this glossary — a referral page, reward tiers, tracking, GDPR and PECR-compliant consent — in one simple tool. Free to start.