Referrals: Overview and How It Works

What Is Referral Marketing?

Referral Marketing in Pabau lets your clinic run a structured, rewards-based referral program, turning your existing clients into a source of new business. You can define what counts as a successful referral, set up rewards for both the referring client and their friend, automate the emails sent when a reward is earned, and monitor the performance of your campaign from a dedicated Referrals dashboard.

To access the feature, Log in to your Pabau account, and in the left sidebar menu, click on Marketing, then click on "Referral."

How referrals are registered

Here's how the process works:

• When creating a new client manually, fill in the "How did you hear about us" field in the new client form, select "Client Referral" from the drop-down, and choose the referring client from your client base.

   

• If you're updating an existing client, open their Client Card and locate the "Referred by" field in the client details profile on the left side of the screen, then select the referring client from there. Once saved, the referral is linked and the reward logic applies based on your campaign's goal.

Reward types

Rewards can be issued as a Voucher or a Custom reward, and can be set up for both the referring client and the referred friend. Voucher rewards appear on the recipient's Client Card under the Gift Vouchers tab. Custom rewards are recorded on the Referrals dashboard only.

How to Set Up a Referral Campaign

Refer a Friend lets you turn happy clients into a growth channel by rewarding them for referring friends to your clinic.

You can define what counts as a successful referral, what advocates and referred friends are rewarded with, the emails sent when a reward is earned, and where the campaign is hosted.

Once published, performance is tracked on the Referrals dashboard. For a full breakdown of the dashboard, read How to Use the Referrals Dashboard. (add anchor)

Step 1: Navigate to Referral Marketing

Log in to your Pabau account, and in the left sidebar menu, click on Marketing, then click on "Referral."

Step 2: Start a New Campaign

Click on "Create your first Campaign" from the Referrals dashboard.

This opens a five-step setup wizard, with a step indicator at the top showing Goals, Rewards, Referred User, Communication, and Installation. You can move between steps using the "Back" and "Next" buttons.

Step 3: Set Your Campaign Goal

In the Goals step, choose when a referral counts as successful. There are three models to choose from:

• Client Created (Recommended): The reward is given as soon as a new client is created with the referral field filled in. This is the default option.
• First Booking (High intent): The reward is given once the referred client's appointment is marked as completed.
• First Purchase (Revenue): The reward is given once the invoice for a product or appointment is fully paid.

Step 4: Configure Rewards

In the Rewards step, set up what advocates and referred friends receive. This step is split into two sections: Referrer rewards and Referred friend reward.

Referrer rewards

Toggle on "Referrer reward" to set up what advocates receive for each successful referral. Enter a reward name, select a reward type (Voucher or Custom), and if you've selected Voucher, choose the applicable voucher from the dropdown listing all active vouchers.

To prevent a single client from claiming an unlimited number of rewards, set an optional reward cap in the "Max per referrer" field.

In addition to the standard per-referral reward, you can set up a Reward milestone, an extra reward given when an advocate reaches a certain number of successful referrals. For example, a $100 voucher after 10 referrals, on top of the regular $15 per referral they receive. Toggle on a milestone, set the threshold using the "After [n] successful referrals" field, and fill in the reward details.

Click "Add reward" if you'd like to add further milestones. Each milestone can be enabled or removed individually.

Referred friend reward

Toggle on "Friend reward" to offer new clients a welcome incentive for joining through a referral. Giving the referred friend a reward on arrival, such as a voucher toward their first visit, increases the likelihood that they'll follow through and book, making it a worthwhile addition to your campaign even though it's optional.

The setup follows the same structure as the referrer reward: enter a reward name, select a reward type (Voucher or Custom), and if you've selected Voucher, choose the applicable voucher from the dropdown.

You can also set a reward cap to control how many times this welcome reward is issued.

Step 5: Configure Communications

In the Communication step, set up the two automated emails sent during the referral journey. Each one can be toggled on or off, and includes a Subject, Preheader, From name, Body, and Button label. You can view a live preview with sample data on the right side.

• Reward earned: Sent to the referrer once the referred friend's first visit is logged. Confirms the reward and can include a nudge toward the next milestone.

• Welcome and voucher: Sent to the referred friend once they create an account through the referral link. Welcomes them and states their first-visit offer.

Step 6: Publish the Campaign

Once you've completed all the steps, click "Publish" in the top right corner of the screen to activate your campaign. You can monitor its performance from the Referrals dashboard.

How to Use the Referrals Dashboard

Once your referral campaign is published, the Referrals dashboard gives you a live view of how your program is performing, from new clients acquired and revenue generated to reward spend and acquisition cost comparisons. 

Step 1: Navigate to the Referrals Dashboard

Log in to your Pabau account, and in the left sidebar menu, click on Marketing, then click on "Referral." The Referrals dashboard will open automatically.

Step 2: Review the Campaign Header

At the top of the dashboard, you'll find the campaign header, which shows your campaign name, its current status, and the start date.

From here, you can also click "Configure Campaign" to return to the campaign setup wizard to make any changes. 

Step 3: View Your Season Summary

Below the campaign header, the "This season's referral story" section gives you a high-level summary of your campaign's impact, including the number of new clients acquired, first-treatment revenue generated, total advocates, and share count. This is a quick snapshot of how your referral program is performing overall.

Step 4: Monitor Your Top Advocates

The "Your top advocates this year" section displays a card for each of your top-performing advocates, showing how many clients they've referred, how many of those have booked, and the revenue generated from their referrals. Each card also shows who brought that advocate in, any reviews they've left, and whether they hold top-advocate status.

You can also send a personal thank-you note to an advocate from this section by clicking "Compose note." Advocates who receive a personal note tend to refer more often.

Step 5: Explore a Referral Chain

The "One share, one ripple" section lets you follow a single referral chain event by event on a timeline, showing referral events and "became an advocate" milestones. Select an advocate from the dropdown on the top right to view their chain, along with totals for bookings, new advocates, and revenue generated from that chain.

Step 6: Track Live Activity

The Live activity feed, located to the right of the referral chain, shows a real-time stream of referral events as they happen, so you can stay on top of new referrals, bookings, and reward triggers without needing to refresh the page.

Step 7: Analyze Cohort Waves

The Cohort waves section visualizes how referrals spread across generations, showing direct referrals alongside second and third-wave referrals (referrers of referrers). For each wave, you can see the number of new clients generated per advocate and the revenue coming from second and third-wave clients.

Step 8: Measure Reward ROI

The Reward ROI section shows the return per dollar spent on rewards. Use the adjustable sliders for average first-visit value and repeat visits to model projected lifetime revenue, giving you a clearer picture of the long-term value your referral program is generating.

Step 9: Compare Acquisition Costs

The "Cost to acquire a new client" section benchmarks your referral customer acquisition cost (CAC) against other common acquisition channels, including Google Search, Instagram ads, Meta/Facebook, and walk-in/local. Alongside each channel, you'll see a season saving summary showing how much you've saved by running a referral program instead.

Step 10: Find Referral Rewards

Once a referral is registered and the reward logic applies, rewards are stored in different places depending on their type:

Voucher: The reward appears on the recipient's Client Card under the "Gift Vouchers" tab, where it behaves like any other gift voucher in terms of validity, redemption, and reporting.

Custom: The reward is recorded on the Referrals dashboard only.

How to Explain Your Referral Program to Clients

Once your referral campaign is set up in Pabau, the next step is making sure your clients know about it and understand how to take part. This guide walks you through what to communicate, how referrals are currently registered, and how to keep your clients motivated to refer friends.

Step 1: Let Clients Know the Program Exists

The first step is simply making sure your clients are aware that a referral program is running. You can do this in a number of ways depending on what works best for your clinic, such as mentioning it during appointments, including it in follow-up emails, or displaying it in your reception area.

When explaining the program, keep the message simple and direct:

• Your clinic offers a referral reward for clients who bring in a friend.
• The referred friend may also receive a welcome reward, depending on how your campaign is configured.
• The more friends they refer, the more they can earn, especially if you've set up milestone rewards.

Step 2: Explain How to Refer a Friend

Referrals are registered in Pabau when a new client is added. When a new client visits your clinic for the first time, make sure to ask how they heard about you and record it correctly.

Here's how the process works:

When creating a new client manually, fill in the "How did you hear about us" field in the new client form, select "Client Referral" from the drop-down, and choose the referring client from your client base.

If you're updating an existing client, open their Client Card and locate the "Referred by" field in the client details profile on the left side of the screen, then select the referring client from there. Once saved, the referral is linked and the reward logic applies based on your campaign's goal.

Step 3: Set Expectations Around Rewards

Be clear with your clients about what they'll receive and when. What the reward is and when it's issued will depend on the goal you've selected in your campaign:

• Client Created: The reward is issued as soon as the referred friend is added as a new client in Pabau.

• First Booking: The reward is issued once the referred friend's appointment has been completed.

• First Purchase: The reward is issued once the referred friend's invoice has been fully paid.

Let your clients know where to expect their reward. Voucher rewards will appear on their Client Card under the Gift Vouchers tab, and can be redeemed in the same way as any other gift voucher. Custom rewards are recorded on your Referrals dashboard and are handled directly between you and the client.

Step 4: Keep Advocates Engaged

Once a client has made a referral, a small personal touch can go a long way in encouraging them to refer again. From the Referrals dashboard, you can send a personal thank-you note directly to an advocate by clicking "Compose note" on their advocate card. Advocates who receive a personal note tend to refer more often.

If you've set up milestone rewards in your campaign, remind clients that there are additional rewards available when they reach a certain number of successful referrals, as this gives them an extra incentive to keep referring.

With your referral campaign set up, your dashboard tracking performance, and your clients informed about how the program works, you have everything in place to start turning your existing client base into a steady source of new business.  With the right goal, clear communication, and a consistent process for registering referrals, you can turn your most satisfied clients into a reliable and measurable source of new business for your clinic.