Business & Growth

    Referral

    A new customer who came in via recommendation from an existing one.

    Definition

    Highest-converting and lowest-CAC source of new business. Many trades offer a $25–$100 referral bonus or service credit to drive them systematically.

    Related terms

    Lead

    A potential customer who has shown interest but hasn't booked yet.

    Customer acquisition cost (CAC)

    The total marketing and sales cost to land one new customer.