Incentivizing Your Referral Program with Advanced Rewards

by Friendbuy

May 25, 2021

Many referral programs work great using just the basic Friendbuy features, especially when you follow our best practices. However, when you take advantage of all of the powerful features available in the platform, you can take your referral program to the next level.

Friendbuy’s tiered reward feature allows you to build dynamic tiers for rewarding advocates based on referred friend purchase behavior or the number of referral conversions accrued. By deploying these advanced features, you can generate more program engagement, encourage super-advocates to make more high-value referrals, and build loyalty to drive even further growth.

How Advanced Rewards Work

Like all of our features, setting up advanced rewards in the Friendbuy platform is easy. Start by configuring the Referral & Sharing widget to select your reward model and build reward tiers based on the criteria you define. Criteria can be the number of conversions (either lifetime or for a specific campaign/widget), products purchased by friends, or purchase amounts.

SKU-Based Rewards

This approach rewards advocates based on the SKUs their friends' purchase, so it’s a great way to promote specific products or categories. You can target your referral marketing by creating a custom post-purchase overlay and using the widget-targeting feature when certain products are purchased. Pair this type of campaign with a product launch to drive awareness and boost sales.

Rewards Based on Purchase Amount

If you want to drive up average order value, consider advanced rewards that depend on the friend’s purchase amount. This also helps you control the costs of your referral program by linking advocate reward amounts to the amount of revenue the referral generates.

Tiered Rewards

For advocates who are motivated by the potential to receive even more benefits for referring friends, tiered rewards are a great approach. This strategy includes increasing rewards for your advocates based on how many friends they convert or the purchase amount of the referred friend.

Customized Emails

The Friendbuy platform allows you to customize reward email templates for each tier so you can clearly communicate the different rewards advocates earn as they reach new tiers. You can also include merge variables in the body of your reward emails to dynamically add information, such as the reward amount, which will update the content with the corresponding value within each reward tier.

How Friendbuy Customers Use Advanced Rewards

One of the key benefits of working with Friendbuy is that you can learn from other brands. Our team of referral marketing experts is also available to help you develop an advanced rewards strategy that will work for your audience. Check out how some of these Friendbuy customers have boosted their referral programs with advanced rewards.

Nuuly ramps up rewards with stackable tiers.

Subscription clothing rental brand Nuuly drives additional shares for its subscription model by using tiered rewards that give advocates greater incentives based on the number of friends referred. Nuuly’s compelling “Give $10, Get up to $60” CTA captures attention with the potential for a 6x reward. Advocates get $10 off one month of their subscription when the first friend subscribes, $20 off with the next friend, and an additional $30 with the third friend.

Nuuly ramps up rewards with stackable tiers

Tonal drives product sales with SKU-based rewards.

Home fitness brand Tonal uses the Friendbuy advanced rewards feature with an evergreen campaign that drives friends to make a high-consideration purchase while rewarding advocates with store credit that can be used in the company’s Gear Shop. This asymmetrical double-sided offer gives friends $100 off a Tonal system and advocates $50 to spend on apparel and accessories. To support this campaign, Tonal uses tiered rewards based on specific products (SKU configuration).

Tonal drives product sales with SKU-based rewards

Interior Define uses dual tiers to increase order value.

Custom furniture brand Interior Define uses the dual rewards configuration to create tiers that determine rewards for both friends and advocates based on the purchase amount. When friends spend more than $2,000, they get a $300 discount and advocates get $150. When the purchase is less than $2,000, the friend gets a $100 discount and the advocate gets $100. This approach drives a higher order value by incentivizing friends to spend more and giving advocates a reason to encourage larger purchases.

Interior Define uses dual tiers to increase order value

Drinkworks drives shares with tiered rewards.

Home bar brand Drinkworks increases referral activity by rewarding advocates based on the number of referrals they generate. Advocates get a $30 Visa gift card for every friend they refer, and friends get a $30 discount on their purchase.

Create Advanced Rewards with Friendbuy

Through powerful advanced reward features with multiple configurations, Friendbuy can do all the heavy lifting for you to incorporate tiered rewards into your offer strategy. Whether you want to drive sales of a specific product or encourage higher-value purchases, advanced rewards can help you encourage the desired behaviors.

Every brand is different, which is why we work with every customer to come up with a unique approach. For more strategies and tips, read The 2021 Referral Marketing Blueprint for E-Commerce.

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