Reward ideas
Cash vs discount referral rewards: which works better?
4 min read
There's no single right answer. Cash, vouchers and discounts each suit different businesses and customers. Here's how they compare, so you can choose one to start with and adjust later.
Cash rewards
Cash is simple to understand and useful to anyone, including people who may not need your service again soon. That makes it a common choice for trades where customers book infrequently, like roofing or boiler installs.
- Easy to explain in one sentence
- Valuable even if the referrer won't use you again soon
- Costs you the full amount each time
Discounts on future work
A discount rewards the referrer and brings them back to you. It tends to suit repeat services such as cleaning, hairdressing or regular maintenance, where customers book again anyway.
- Encourages repeat bookings
- The real cost to you can be lower than the face value
- Less appealing to customers who don't plan to book again
Vouchers and gifts
A voucher for a local shop or a small gift can feel more personal than cash. It's a middle ground: useful to most people, and something they'll remember you for.
How to choose
- Do customers book you again regularly? A discount may suit you.
- Is each job a one-off? Cash or a voucher is often clearer.
- What can you comfortably afford for every successful referral?
- Which would your own customers value most? If you're unsure, ask a few of them.
Whatever you pick, keep it consistent for a while so you can see how it goes before changing it.
In short
Choose the reward that fits how often your customers come back, and that you're happy to pay every time. You can always test a different option later.