Referral programs turn satisfied users into product advocates by encouraging them to recommend your product to others. Tracking these referrals shows which users bring in new users, what motivates successful referrals, and how referred users behave differently from other users.

Good referral tracking captures the full referral journey. It starts with identifying who made the referral, how they shared it (email, social, direct link), and when the new user acts on that referral. Teams can then see which sharing methods work best and what types of users make the most effective advocates.

Referred users often show different patterns than users from other channels. They typically trust the product more quickly and stay active longer because they came through a trusted source. Tracking these differences helps teams understand the true value of referral programs and how to improve them.