Zmartly says referrals bring in 30% of new clients

Accountancy firm Zmartly says referrals account for around 30% of its new clients, having supplied all its customers during its first six years without other marketing activity.

Founder and chief executive Harvey Dhillon described the firm's experience in a referral marketing guide published by SmallBusiness.co.uk on 19 October 2026. The business now uses an external digital marketing team alongside recommendations from existing clients.

What happened

Zmartly has a referral scheme but has not advertised it, according to Dhillon. Rather than promoting a reward to encourage introductions, the firm gives clients a small goodwill gesture after they make a recommendation.

Dhillon said the firm added other marketing channels only when it could afford outside support. Its experience illustrates how a business can move from relying on customer introductions towards a broader marketing mix, while retaining referrals as a source of new work.

The guide distinguishes a managed referral programme from informal word of mouth through measurement. Businesses can assign individual links or codes to customers, allowing them to identify which recommendations produce website visits, registrations, downloads or purchases.

That tracking also provides a basis for allocating rewards. A business can recognise the customer who generated a successful introduction and, where its scheme allows, give the new customer an incentive too.

The available routes extend beyond online campaigns. Staff can ask customers directly after a positive experience, include a referral message on a receipt or use shop signage. Websites, email and social media provide additional ways to explain the offer and direct people towards it.

Email subject lines should identify the referral scheme and any incentive, the guide advises. For social campaigns, customers can be encouraged to share a post or video, with unique links or codes connecting that activity to an outcome. This gives businesses a specific use for social media within customer marketing.

The background

The guide cites Dropbox as an example of a scheme rewarding both sides of an introduction. It reports that the company increased its user base by 3,900% by offering 500MB of additional free storage to both the person making a referral and the person joining.

Razor brand Harry's took a different approach, using reward tiers. Customers received immediate prizes when their referral totals reached specified thresholds, creating a structure in which more introductions unlocked larger rewards.

Other options identified in the guide include vouchers, discounts, loyalty points, free products, samples and service upgrades. The choice depends on what customers value: repeat buyers, for example, may respond to savings on a future purchase or the opportunity to try something new.

Points can be awarded for each successful registration and redeemed later. Alternatively, customers can accumulate money-off rewards until they have enough to obtain an item without paying. Both approaches connect the benefit to a recorded action rather than an unverified recommendation.

Referral measurement is distinct from the conversion performance of AI-generated shopping referrals. In the customer schemes described here, the business is tracing an introduction made by an existing customer, potentially with a reward attached, rather than simply recording a visit from another digital channel.

What people are saying

Dhillon said referred prospects convert at a very high rate because they approach Zmartly with confidence in the firm already established. He did not provide a conversion percentage or an acquisition-cost figure.

He linked recommendations to tangible improvements in a client's circumstances. In one example, he said a previous accountant had left a client paying £18,000 in VAT when the amount should have been £6,000. Zmartly's intervention saved the client £12,000, he said.

His view is that satisfaction, rather than the prospect of a reward, prompts clients to recommend the firm. He advised businesses to concentrate on serving their existing customers before committing money to finding others.

The guide makes a broader distinction between measurable objectives and less easily quantified benefits. Sales, leads and social following can be tracked, while stronger awareness and reputation may also result without being as straightforward to measure.

What happens next

For businesses considering a scheme, the guide sets out a planning sequence rather than a launch deadline. The first step is to decide which outcome the programme should deliver, so that its tracking measures the intended result rather than collecting referral numbers alone.

Customer analytics can then help identify the most suitable audience and incentives. The guide highlights repeat customers as a logical starting point because their existing relationship with the business may make them more receptive to recommending it.

The next decision is how to administer the scheme. Referral software can handle invitations, generate individual codes or links and monitor conversions. The guide identifies such platforms as particularly useful when managing a tiered reward structure.

A dedicated platform is not essential where expected volumes are low. Businesses can approach customers individually and keep records in a spreadsheet, while existing email software may provide forms and landing pages that help capture introductions.

The process should make clear what a customer must do to qualify. A landing page can provide the detail, supported by website banners or pop-ups, emails to existing customers and promotion inside physical premises.

Online businesses can also send a follow-up email after a purchase, offering a discount on the customer's next order for referring a friend. An individual link allows the business to see when the new customer registers and identify who should receive the reward.