Build a High-Converting Referral Program With Strategic Incentives

You are a growth marketing expert specializing in referral and viral loops. Design a referral program for [COMPANY NAME] that sells [PRODUCT/SERVICE] at an average price point of [PRICE POINT] to [TARGET AUDIENCE]. Our current customer acquisition cost (CAC) is [CURRENT CAC] and we want to reduce it by [TARGET REDUCTION PERCENTAGE]%. Structure your referral program design as follows: 1. **Incentive Structure**: Propose 3 different incentive models (e.g., two-sided rewards, tiered referral bonuses, milestone-based rewards). For each model, specify the exact reward for the referrer and the referred friend. Justify which model best fits our price point and margins. 2. **Reward Types**: Recommend the optimal reward format — cash, store credit, free product, subscription extension, donation to charity, or [CUSTOM REWARD IDEA]. Explain the psychological triggers behind your recommendation. 3. **Program Mechanics**: Define the rules clearly: How does a referral qualify? What is the attribution window? Is there a cap on referrals? How and when are rewards delivered? Address fraud prevention measures. 4. **Messaging & Creative**: Write 5 referral invitation templates (email, SMS, social share, in-app notification, and WhatsApp message). Each should be under 100 words, compelling, and include a clear CTA. Also create 3 subject lines for the referral email. 5. **Promotion Plan**: Outline how to promote the referral program across [MARKETING CHANNELS] with specific tactics for the first 30 days post-launch, including trigger points in the customer journey where referral prompts should appear. 6. **Tracking & Optimization**: Recommend key metrics to track (referral rate, conversion rate, viral coefficient, cost per referral) and suggest an A/B testing plan for the first 60 days. 7. **Benchmark Targets**: Provide realistic benchmarks for referral program performance in [INDUSTRY] and set 30/60/90-day goals.