FAQ about Referral and Loyalty Programs
In this article, you will find some frequently asked questions regarding referral and loyalty programs. If you don't find the answer here, please don't hesitate to contact us directly.
- What is the difference between a one-sided and double-sided referral program?
- How redemptions are counted in a referral program?
- What is a conversion event? What types of conversion events can I use?
- What types of rewards can I offer to a referrer?
- What types of rewards can I offer to a referee?
- What does it mean that customers will be allowed to join a referral campaign only once?
- What is an earning rule?
- Is there a limit on tiers in a loyalty program?
- How redemptions are counted in a loyalty program?
- How can I transfer points between loyalty cards?
- What does it mean that customers will join the loyalty campaign if the earning rule is fulfilled?
- What is a customer cockpit?
What is the difference between a one-sided and double-sided referral program?
You can create two modes of referral programs in Voucherify. In the case of one-sided referral programs, only the referrer (customer who shared a referral code) is going to be rewarded for a successful referral. However, in the case of a double-sided program, both the referrer and the referee will be rewarded for redeeming a referral code.
How redemptions are counted in a referral program?
In the case of referral programs, only redemptions made with the use of a referral code count as redemptions.
What is a conversion event? What types of conversion events can I use?
A conversion event defines a successful referral. You can choose between two main types of conversion events:
- referee redeems the referral code
- and a custom event.
In the case of referee referring a referral code, this activity is going to be counted as a successful referral that will trigger a reward for the referrer or both referee and referrer (double-sided referral program).
You can also establish that your referral program will not be based on referral code redemption but other activities (custom events), such as leaving a positive review or tagging your brand on social media. In this case, the successful referral action is based on custom events.
What types of rewards can I offer to a referrer?
You can choose between four rewards for referrers – discount coupons, gift card credits, loyalty points, and material rewards (based on Products). You can base the criteria for the reward assignment on each referral action or X number of referrals needed for the reward assignment (e.g., the referrer will receive a reward after three successful referrals).
If you want to have different rewards or/and different rewarding criteria then you can add tiers to your referral campaign. For example, tier 1 can reward each referrer who refers at least 1 customer with a $5 discount; tier 2 can reward each referrer who refers at least 2 customers with a 20% discount.
What types of rewards can I offer to a referee?
In the case of double-sided referral programs, you can also reward the referees. You can reward them with discount codes, gift card credits, or loyalty points. Note that the referral code on its own can act as a discount.
What does it mean that customers will be allowed to join a referral campaign only once?
If you enable this option, then when the same customer requests another referral code, Voucherify will give him/her the same code again and will not generate another code for this end-user. Therefore, one customer can only receive one referral code assigned from a particular referral campaign.
What is an earning rule?
Each earning rule defines an action that assigns a particular number of points to a customer's account. You can choose between three types of earning rules – based on orders, custom events, and customers entering new segments. You can assign a proportional number of loyalty points to order value (e.g., 1$ = 0.5 loyalty point), but a fixed number of points to the remaining two earning rules.
Is there a limit on tiers in a loyalty program?
No, there are no limits in creating tiers for your loyalty programs. However, keep in mind that too many tiers may create confusion and make your loyalty program less transparent to end-customers.
How redemptions are counted in a loyalty program?
In the case of loyalty programs, only loyalty reward redemptions count as redemption.
How can I transfer points between loyalty cards?
If a customer has two or more assigned loyalty cards, Voucherify offers you an opportunity to transfer points from one card to another, e.g., when the customer does not have enough points on a single loyalty card to receive the reward. Points can be transferred between cards in the same and different loyalty campaigns and for the same and different customers. You can transfer loyalty points using API.
What does it mean that customers will join the loyalty campaign if the earning rule is fulfilled?
By marking this option, you enable the automatic addition of loyalty member participants if they perform a designated action (earning rule). It can be making an order with specific parameters, joining a predefined customer segment, or performing a custom event (e.g., sharing your profile on social media).
What is a customer cockpit?
The customer cockpit is an individual space of each customer that presents details of loyalty programs, assigned referral codes, and owned incentives (discounts, gift cards). Thanks to white-labeling, you can customize customer cockpits in accordance with your brand guidelines.