How to reward referrers with loyalty points?
Let’s create a campaign workflow that rewards referrers and referees with loyalty points. We're going to reward a referee with 7 points and a referrer with 99 points on a loyalty card that can be used to pay for their next order. To achieve that we need to create both a referral and a loyalty program.
In this section:
- Create a loyalty campaign:
- Define how your customers can earn points (except the earning rule with referral activity which will be added while setting up referral program).
- Add rewards which can be exchanged for points.
- Create a referral program:
- Choose a double-sided reward in the Incentive Workflow section.
- Define rewards – add loyalty points as a reward for referee and referrer.
- Invite your customers to join your referral program.
Create a loyalty campaign
In our example, we're going to set the program conditions as follows:
- We will reward users with the ability to pay for the order with points (as cash). One loyalty point corresponds to 1 dollar.
- The rule for earning points will be referring new customers with referral code (this one is added while creating a referral campaign).
1. In the first step, we need to create a campaign and fill in program details.
2. In the second step, we can define earning rules which establish how your customers can collect points.
The rule which specifies the successful referral activity will be defined when creating a referral campaign.
If you want your customers to collect points for other actions than just referring customers, click create earning rule. You can build rules based on customers' activity and their order history. Read more about earning rules here.
When ready, go to the next step.
3. Now, we can add rewards and define what your clients can do with collected loyalty points.
Voucherify offers you several Reward types:
- discount vouchers,
- free shipping,
- gift card credits,
- loyalty card points,
- material rewards (based on products),
- pay with points reward.
In our example, we add a reward which enables customers to pay with points as each point equals $1.
4. In the 4th section, you can add tiers. They let you easily create loyalty programs with different levels of membership and varied earning rules and rewards based on customers' tiers.
5. In the 5th section, you can add additional information as metadata and go to the next step. Lastly, we can see the summary, let's confirm the loyalty program with SAVE. The Manager will redirect you to a detailed view of our campaign.
Create a referral campaign
Now, when our loyalty campaign is ready, we're going to create a referral campaign where each referrer and referee will be rewarded with loyalty points (double-sided referral program). As a result, every time a referral code will be redeemed, 99 loyalty points are assigned to referrer's account and 7 points to a referee's account.
If you need precise, step-by-step instructions on how to launch a referral campaign, please go here.
1. In the 1st step, we need to create a referral program in the Campaign Manager:
2. In the 2nd step, we can define optional time limits (start and expiration date, recurring time periods when codes are valid, and so on).
When the time limits are set, go to the next step, and set the incentive workflow.
3. In this section, 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).
Next, choose a conversion event (when a new customer is approved as referred):
- If you want to define 'referred' customer based on referral codes redemptions, check the first checkbox.
- If you want to define 'referred' customers based on a custom event (particular customer's activity) check the second checkbox. The event has to be defined previously in your Project Settings and passed each time with the API request. Please, see the details here.
In this example, we're creating a double-sided referral program with a referral code redemption set as the conversion event.
4. Now, choose the Next step and define a reward for a referee. This is the step that connects your loyalty campaign with the referral program. In our example, the reward will be 7 loyalty points. We need to select the loyalty campaign created in the first step and add a number of points.
After choosing a reward for a referee, you can set Validation rules for referral code's redemption (rules that a new customer needs to meet to redeem referral code). By default, the manager limits the referral code's redemptions to new customers only by allowing a referee to redeem code only once.
You can remove this limit or add more validation rules by choosing Edit.
Learn more details about validation rules here.
5. In the 5th step, we can define rewards for referrers, in our case referrer will get 99 loyalty points for every referred customer (every customer who redeemed the referral code).
You can add as many rewards as you want to and group them into tiers. Each tier is a separate level in your referral program.
For example, tier 1 can reward each referrer who refers at least 1 customer with a $10 gift card; tier 2 can reward each referrer who refers at least 3 customers with 50 loyalty points.
Now when we finished we can click save and the campaign is ready. It's time to invite our clients to the referral program and share referral codes.
Invite customers to join referral campaign and redeem referral code
After you share your codes with referrers, they can invite new customers to use referral code. After the code is redeemed, you can see that balance on loyalty cards assigned to referrer and referee (customer who made a redemption) is updated.
Loyalty points were assigned to the referee after placing an order:
Referrer got 99 loyalty points for a new referral:
In their customer profile, you can also see the number of already referred clients: