The entire referral program runs on a simple theorem. You bribe your customers with the exciting rewards, and in return, they get your customers by sharing the referral link with friends. Selecting the reward for your referral program is the crucial part because the customers will only enrol in the referral campaign if they see getting any benefit out of it.
Following are the types of referral rewards that you can implement in your referral program for your customers.
1. Cash Rewards
Cash prize attracts customers the most. Cash prizes can be given out in two ways:
- Transferring dedicated amount via digital wallets: PayPal, Paytm etc.
- Giving out a percent of cash back on every referral.
Cash prizes might be quite exciting for the customers but can empty your pockets on every referral reward that you give out. Thus it is necessary to plan such rewards in a way that provides two-way optimization.
Note: always set a limit for the cashback. For example, if you are rewarding $100 on every referral, it will get a hole in your pocket. You can give out $100 on first referral, $50 on second and keep setting such barriers.
2. Custom Rewards
There is no book rule to reward your customers, reward your customers as you like. Rewards such as gift cards, company’s swag bag which might contain customized t-shirts, mugs etc.
While giving out customized rewards, it is a good practice to give out rewards which are related to your company.
3. Credits/Online Currency
Many e-commerce these days have their digital store currency, aka credit score.
On every successful referral, the referrers are offered a dedicated credit currency, say on every referral they get 1000 credit coins that they can use in their next purchase.
4. Coupon Codes
These are the most commonly used in referral reward programs. Referral coupons codes that you give out to your customers can be of two types, the single-use coupon code and the multiple-use coupon code.
Referral codes are alphanumeric or can be customized by the referrers.
When the user enrols in the referral campaign, the code is generated. Therefore, the code is sent to their friends. Referrers can then redeem the code on every successful referral.