Always Offer a Reward
There are two reasons why it’s essential:- Rewards provide a direct incentive for the referrer - the brand is paying them to advocate.
- Rewards add value for the referee, so the referrer feels they’re genuinely helping a friend.
Choose the Right Type
- Retail: Discounts (percentage or fixed amount) work well - they’re clear and create urgency.
- Subscription, Travel, Insurance: Gift cards or vouchers tend to land better, as purchases are less frequent and more considered.
Match Rewards to Buying Habits
- Frequent purchases (fashion, food, beauty): Discounts feel relevant and encourage quick repeat buys.
- Infrequent or high-value purchases (travel, finance): Gift cards feel more worthwhile and better match expectations.
Make Your Referral Offer Stand Out
Referral rewards should be your best offer. If customers can find a better deal elsewhere on your site (newsletter signup, basket abandonment, affiliate offers), they’re unlikely to refer others.Keep It Fair for Both People
Referrers and referees don’t need the exact same reward, but the value should feel balanced. If the rewards aren’t fair, either the referrer will feel they’re benefiting at their friend’s expense, or feel they’re being taken advantage of. Both suppress performance.You Must Be Able to Fulfil the Reward
For any referral reward, you need to know exactly how you will deliver it. For 80% of schemes, this means sending a voucher code via email. But sometimes you may want to post something, credit an account, or run a competition. Figure out how to get the reward to the customer before you start offering it.Consider Automation
Using a reward platform can save time, avoid mistakes, and ensure a smooth customer experience. Get started with one of our integrations.Delay Rewards When It Makes Sense
For some categories, it’s smart to wait before sending rewards:- Travel: Send rewards after the trip takes place
- Subscriptions: Wait until month two or when a contract is confirmed
- Retail with high returns: Only issue rewards after the return window