In the digital era like today, you may often encounter the term "referral code" when using applications, shopping online, or registering for certain services. But what exactly is a referral code? How does it work, and what are its benefits for users and companies? This article will explain in simple terms about referral codes, their functions, and the types that are commonly used.
What is Referral Code?
Referral code is a unique code in the form of a combination of numbers, letters, or symbols that is used to track who recommends a product or service to others. This code is usually given by companies to their loyal users, then the user shares the code with friends, family, or new users.
Simple example: When you register for an online motorcycle taxi application, there may be a column to enter a referral code from a friend. If you use the code, both you and the friend who gave the code can get a certain discount or gift.
Referral Code Function
Referral code is not just an ordinary code. There are several important functions behind its use:
- Makes Tracking References Easier
Companies can see where new customers come from. For example, if you use a friend's referral code, the company immediately knows that your friend brought you to the platform. - Incentivize Users
Both the user who shares the code and the one who receives it usually get a reward. Example: Rp20,000 discount for new users and reward points for old users. - Increasing the Number of Users
Referral programs are an effective marketing strategy. With the promise of rewards, existing users are motivated to invite more people to join. - Building Customer Loyalty
Users who actively share referral codes tend to be more loyal because they feel appreciated by the company.
Types of Referral Codes
Not all referral codes are the same. Here are the most common types:
Code for New and Existing Users
- Example: E-commerce applications such as Shopee or Tokopedia often provide vouchers for new users who enter a referral code when registering. While users who share the code get cashback.
Single-Use vs Multi-Use Code
- Single-Use: Can only be used once. For example, a Gojek referral code that is only valid for one person.
- Multi-Use: Can be used multiple times up to a certain limit. Example: investment app referral code that can be used by 5 people.
Personal Code vs Public Code
- Personal Code: Unique to each user. Usually directly related to the user's account, such as a name or ID.
- General Code: Can be used by anyone without being associated with a specific account. Example: code "DISKON50" for all new users.
Time-Limited Code
Some referral codes are only valid for a certain period of time. For example, a code that must be used within 7 days of receipt.
Code Based on Tier
The more people use your referral code, the bigger the reward. Example: A digital wallet app referral program that gives a bigger bonus if you invite 10 people.
How to Use Referral Code?
How to use a referral code is usually very easy:
- Get Code: Request a referral code from a friend or company (e.g. via email or in-app notification).
- Enter Code: When registering or making your first transaction, fill in the "referral code" column with the code provided.
- Claim Rewards: Once the code is verified, the reward will be immediately credited to your account or the friend who shared the code.
Tips to Maximize the Benefits of Referral Code
- Share with People Closest to You: Prioritize family or friends who really need the service.
- Use Social Media: Post your referral code on Instagram, WhatsApp, or TikTok to reach more people.
- Pay Attention to Terms and Conditions: Make sure you understand the time limit, number of uses, and how to claim the prize.
- Combine with Other Promos: Sometimes, referral codes can be combined with other discounts or cashback.
Conclusion
Referral code is a win-win solution tool: users get rewards, companies get new customers. By understanding its functions and types, you can use referral codes to save money or even make extra money. So, don't hesitate to share your referral code or use someone else's code, who knows you might get an attractive discount!
