A referral code is a unique combination of numbers, letters, or both, which are used as an identifier. Businesses use referral codes for their referral programs. And as we all know, referral programs are powerful ways to generate word of mouth.
In these programs, referral codes are used to track the origin of a referral. Referral codes effectively connect the referral to the customer who sent them to the business. This way, if a referral program offers rewards, say cash or a discount, it can be distributed to the right person.