Setting Your Promotional Offer & Referral Reward
ShopLocal Best Practices Guide
A Simple Tutorial for Business Owners
Your referral program works best when three things are true:
New customers feel excited to try you (Promotional Offer)
Your existing customers feel appreciated (Referral Reward)
Your business stays profitable
This guide walks you through exactly how to choose the right offer and reward to achieve all three.
1. Understand the Two Parts of the Referral Program
B. Referral Reward
This is the incentive you give new customers who are referred to your business.
Examples:
$20 off first service
Free dessert with meal purchase
Complimentary consultation or upgrade
10% off first purchase
This is the “thank you” you give to the person making the referral after their friend becomes a paying customer.
Examples:
$10 gift card
$25 account credit
Free add-on service
Loyalty points
These two work together: the Promotional Offer brings new customers in, and the Referral Reward encourages more people to share your business.
2. How to Choose a Smart Promotional Offer
🎯 Irresistible enough to motivate action
People are more likely to try a new business if they feel they’re receiving meaningful value.
💵 Affordable and sustainable
Your offer should be attractive without hurting your margins.
🧩 Aligned with your most profitable services
Whenever possible, direct people toward services or products with healthy profit margins.
Recommended Offer Guidelines
For Service-Based Businesses (Home Services, Contractors, etc.)
Choose one:
$25–$50 off first service
Free upgrade or add-on (e.g., free inspection, free tune-up, free deodorizer, free filter, etc.)
Percentage discount (10–15% off first visit)
Tip: Flat-rate discounts ($25 off) are easier for customers to understand and convert better.
For Restaurants, Cafés & Food Service
Choose one:
Free appetizer or dessert
BOGO (Buy One, Get One 50% off)
10% off first visit
Tip: Restaurants often see the highest redemption rates. Choose something inexpensive but perceived as high value.
For Salons, Spas, & Wellness Providers
Choose one:
$20 off first service
Free upgrade (deep conditioning, brow wax, aromatherapy, etc.)
10–15% off first visit
Tip: Upgrades are powerful because they cost very little yet feel luxurious.
For Professional Services (real estate, insurance, finance, coaching, etc.)
Choose one:
Free consultation + bonus (“Free consultation with a $25 gift card when you become a client”)
Discounted first service package
Free audit/review
Tip: Professional services should provide value, not discounts on expertise.
3. How to Choose an Effective Referral Reward
Your reward should encourage participation while matching your business model.
Referral Reward Recommendations
A. Make it proportional
A good rule of thumb:
Your referral reward = 20–40% of the Promotional Offer’s value
Example:
Promo Offer: $25 off
Reward: $5–$10 gift card or account credit
B. Choose a reward you can fulfill easily
Best options:
Account credits (they always get used!)
Gift cards (Starbucks, Amazon, local businesses)
Free small upgrade
Loyalty points
Avoid anything that requires tracking or manual paperwork.
C. Make reward delivery automatic when possible
Your ShopLocal system sends the referral reward right away once a referred customer becomes a new paying client.
Automatic = higher satisfaction + more referrals.
Testimonials
John Doe
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Jane Doe
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.