Rewards cards are designed as an incentive to encourage repeat sales to existing customers. Rewards cards increase in value each time a qualifying purchase is made; that value can be used towards a future purchase.  Rewards cards can be issued to customers at the store owner’s discretion. 

Referral cards serve a purpose in addition to functioning as a rewards card. Referral cards are preloaded with a dollar value and given to good customers to give to their circle of friends and relatives who have the potential to become customers. Referral cards can only be used by new customers. The preloaded dollar amount is an inducement to get potentially good customer to visit your store. Referring customers are rewarded when referred customers spend a predetermined threshold amount. Referral cards are a great way to add qualified buyers to your customer base.

In the above example, you see that we are issuing a reward card to the present customer, with a $25 initial value, and also two $50 cards for him to give away.

Low cost of customer acquisition, increased sales and less discounting are three great reasons to consider this feature.