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Growth

Referral

Also known as referrals, word of mouth

A new customer who came because an existing one recommended you. Usually your cheapest and highest-quality source of growth.

Example

Giving both sides ₹200 credit for a successful referral turns happy users into a growth channel.

Related terms

CAC
The average amount you spend to win one new paying customer — all your marketing and sales costs divided by how many customers that money brought in.
Virality (K-factor)
How much your users bring in new users by themselves. A K-factor above 1 means each user brings more than one new user — organic, self-fuelling growth.
Network Effect
When your product becomes more valuable to each user as more people join.

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