Multi-tiered referral program

In this tutorial, we are going to create a multi-tiered referral campaign. The referees will receive a percentage discount for using a referral code to place an order worth more than 50$. The referrers are going to get tiered rewards based on the number of invited users:

  • One referee – 25$ discount for orders above 60$.
  • Two referees – 50$ discount for orders above 120$.
  • Three referees and more – 50% discount for all orders. 
1
Build a double-sided referral program.
2
Create multiple referral tiers.
3
Design referral notifications.

Multi-tiered referral diagram

1

Build a double-sided referral program

To generate referral codes, go to the Campaigns tab and hit plus (+) to generate new referral codes.


Choosing a referral program

1. First, provide general information about your referral program:

  • Program name.
  • Auto-update mode – if you run out of the original pool of codes, Voucherify will automatically generate new codes. 
  • Customers are allowed to join the campaign once – if the same customer requests another referral code, Voucherify will give him/her the same code again and not generate another code for this end-user. 
  • Category.
  • Code redemption limit (once, X number of times, unlimited). 
  • Code count.
  • Code pattern

General details

2. In the second step, choose the timeframe of your referral campaign. 

  • Start and end date (recommended).
  • Validity timeframe. 
  • Valid on specific days of the week. 
  • Valid for X after publication. 

Referral program timeframe

Please follow this tutorial to learn more about time limits.

3. In the third step, decide on the incentive workflow. 

First, choose the conversion event, i.e., the event that will trigger a successful referral. 

  • The referee redeems a referral code. 
  • Custom events (e.g., the referee signs up for a newsletter). 

In our case, the conversion event will be based on the referral code redemption. Therefore, every time the invited user redeems the referral code, the referrer will get a successful referral. 

Please follow this tutorial to learn more about custom events.

Then, choose either a single- or double-sided referral program. Unlike double-sided programs, single-sided programs provide rewards only for the referrers.

conversion event

Dobule sided

4. The fourth step is to create a reward for the referee (invited user) – a 15% discount. You need to use validation rules to add limits to the reward, such as minimum order volume. When the referee uses the referral code, he/she will automatically get a 15% discount. 

Referee reward

Now, build validation rules. One redemption per customer is already added to validation rules. Add an order-based validation rule:

  • Minimum order value > 50$. 

Order volume

2

Create multiple referral tiers

In the fifth step, create three referral tiers. The creation of a referral tier is a 3-step process:
  • Criteria 
  • Reward
  • Notifications (optional)

First, name the tier and define its criteria. 

Tier 1

Next, select an already existing reward or create a new one on the spot. If you create a new reward on the spot (discount coupons, loyalty points, or gift card credits), you will be asked to choose a campaign that the reward comes from. The validation rules for the referrer rewards are based on the validation rules used in the given campaign. You can create a new campaign on the spot. 

Tier 1 overview

Confirm the referral reward with Add Reward

Add reward

The reward is properly added when you can see it in the section below the Add Reward tab. 

Added reward

In the notifications tab, you can create special messages based on triggers. In the case of tier-based notifications, they are triggered when the referrer gets the referral reward. You can skip this step; however, note that you won't be able to create tier-specific notifications in the next step. Follow this guide for more information on tier notifications. You can skip this step if you do now want to create separate messages per tier. 

Repeat these steps to build the remaining tiers. 

The second tier (50$ discount on orders above 120$) is created in the same way as the first tier. 

When it comes to the third tier, you will need to use advanced filters to reward three and more referrals. Here's how to set it up:

Tier 3 advanced filters

The number of referred customers can be equal to 3 or be more than 3. The referrer will get the third tier's reward – 50% off on all orders with no minimum order amount in both cases. In order to make sure that customers with 3 and more referees receive only one reward, add a validation rule to the reward (50% off – redeemable once). 

You can add a similar rule to the other two tiers as well as an additional way to secure your budget. However, Voucherify by default will make sure that customers won't receive the same reward twice. 

Redeemable once

When three tiers are ready, move on to the next step. Remember that you can but don't have to build referral reward notifications per tier.

Ready tiers

3

Create referral notifications

You can design notifications to send referral codes to referrers and inform the referrers each time a referee used their code. You can use multiple channels and integrations to send notifications that go along your brand style. 

Let's design an email notification sent by Voucherify as your email provider. The notification's goal is to send a referral code to the customer who joined your referral program. 

Here is an example of a notification you can design. 

Referral notifications

Please follow this tutorial to learn more about code delivery in Voucherify.

In the seventh step, you can add metadata to the campaign to improve your program's tracking and customization. Finally, in the eighth step, view the summary of your program and confirm it with Save.

Referral Campaign Summary

Referral Summary 2

Next, Voucherify will generate your referral campaign. Below, you can see the overview of the referral campaign after its activation.  

Referral summary

Now, customers are going to be automatically rewarded with a referral discount for each new referral. 

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