A system that incentivizes existing members to introduce new customers to a subscription service offered by a large online retailer. This strategy typically involves rewarding both the referrer and the referred individual with benefits, such as discounts or credits, upon successful sign-up by the new member.
This approach fosters organic growth by leveraging word-of-mouth marketing and customer advocacy. Its effectiveness lies in its ability to acquire new subscribers through trusted sources, often resulting in higher conversion rates and customer retention. Historically, such programs have proven to be a cost-effective means of expanding market reach and increasing brand loyalty within the digital economy.