How to create referral program step by step
Watch our video tutorial on how to launch a referral program or follow the written tutorial below👇🏼
Learn how to set up a referral program and create unique referral codes in the campaign manager 💪
To begin with, you’ll need to run the Campaign manager with the Plus.
When the creator is ready, you can configure program details. Let's go through each stage of the manager step by step.
🚀 Firstly, add a new referral campaign:
- program name (go here to find some inspiration for naming your campaign)
- code settings (pattern, redemption limit)
- auto-update campaign mode
Click on NEXT when it's ready ➡️
The 3rd section 'Incentive Workflow' consists of the following steps:
Choose a conversion event (when a new customer is approved as a referred) 🔄
If you want to define 'referred' customer based on referral codes redemptions choose the first checkbox ✅
You can also define 'referred' customers based on a custom event defined previously in your Project Settings, for example, 'customer_subscribed' event. As a result, if a new customer performs a defined event he/she will be counted as a referred customer and the owner of the referral code used during the event gets a new referred customer attached to his/her account. ✅
💡 Event Schema
To define custom events go to the Project Settings and add the respective configuration. Please note that your application must store an event describing a moment of conversion once you approve a new customer as a referred person it triggers a rewarding mechanism.
After you mark the respective checkbox ✅ and define the conversion event, you need to choose a type of your referral program.
Choose between a single- or double-sided referral program
In the next step, you need to decide if the new customer (referee) and referrer will be rewarded - double-sided program, or if only the referrer gets the reward - single-sided program.
Go to the NEXT STEP ➡️
In the case of double-sided referral program - define discount for the referee (new customer) 🎁
If you mark a checkbox with a double-sided referral program, you need to define a reward for new customers (referees). It can be a discount code (percentage, unit, amount), gift card balance added to a predefined gift card that each customer in Voucherify has by default or points added to the loyalty card.
Below the Referee reward section, you can see Validation rules for the referral code's redemption. This is a place where you can create validation rules attached to referral codes. They restrict redemptions made by new customers (referees). To add your rules choose EDIT and add a name for validation rules. If you need help with creating limits, visit this guide.
Confirm the rules by choosing SAVE and go to the NEXT STEP ➡️
1. Conversion event - referral code redemption
In case of the reward schema based on referral codes redemptions, choose from:
- Reward every time referee redeems the referral code
Every time referral code is used, the reward is triggered.
- Number of referees who redeem referral code is
This option enables you to state how many times a referral code has to be used in order for the referrer to get a reward.
By clicking SHOW ADVANCED, you can set how many times the code has to be used and set up some additional limitations based on the referees attributes, such as Country, Number of Orders or Total Amount of Orders Made and many more.
When the respective checkbox is set, click on NEXT STEP➡️ and define the reward for referrers. You can choose from:
- your existing campaigns (chosen campaign should be in auto-update mode!),
- creating a new campaign of rewards from scratch,
- adding gift card credits
- adding points to a loyalty card
2. Conversion event - custom event
If you count referred customers (referees) based on the performed event, defined in the 3rd section, you can choose from:
- Rewarding referrer every time the referee performs a specific action (custom conversion event),
- Defining a number of referees who need to perform a specific action to trigger a reward for the referrer.
Additionally, if you expand ADVANCED options, you can add more limits and rules that referrer needs to meet to get the reward.
For example, you can set that besides the fact that two customers need to perform the chosen custom event with referrer's code, referrer has to already have more than two orders made in your store to get the reward 😮
Lastly, in this stage, you can implement channels via which you want to notify a referrer about the reward. You can choose from:
- HTTP callout (add specific URL for notification)
- Email (the manager lets you design the message template) 💌
- Integrations (MailChimp)
You can also send message via outside communications providers. Visit your Integration Directory to integrate with MailChimp, Braze and other 👌
Here's an example of a notification that you can create:
You can skip this step and design your distribution later on in the Distributions tab.
Go here to learn more.
When the action is defined, you can follow to the 6th stage or choose to ADD TIER (the 2nd one). What are 'tiers' and why do you need them?
Each tier is a separate level in your referral program. If you want to have different rewards or/and different rewarding criteria then tiers are what you need. For example, tier 1 can reward each referrer who refers at least 1 customer with $5 gift card; tier 2 can reward each referrer who refers at least 3 customers with 30% discount.
There is no limit on a number of tiers, you can make multi-level referral programs with many rewards and custom rewarding schemas 😎
Remember that each referral code needs to be published before new customers (referees) can use it. Publication is the process of assigning referral code to a particular customer (referrer). You can perform this action either through Distribution in the dashboard or programmatically via API.
Don't forget to check out our blog to learn more about referral programs - tips, ideas and best practices explained!