{"id":37395,"date":"2024-07-10T00:39:17","date_gmt":"2024-07-10T04:39:17","guid":{"rendered":"https:\/\/referralrock.com\/blog\/?p=37395"},"modified":"2024-07-10T01:11:40","modified_gmt":"2024-07-10T05:11:40","slug":"referral-coupons","status":"publish","type":"post","link":"https:\/\/referralrock.com\/blog\/referral-coupons\/","title":{"rendered":"Referral Coupons: How To Set Them Up"},"content":{"rendered":"\r\n\r\n\r\n

Everyone loves to save money on a purchase, or get a free gift when they buy. Clearly, coupons are powerful \u2013 and they increase purchase rates.\u00a0<\/p>\r\n\r\n\r\n\r\n

With a referral program, coupons become even more powerful, as you combine the motivation of coupons with the trusted recommendations of peers.<\/p>\r\n\r\n\r\n\r\n

Here\u2019s how you can use referral coupons to your full advantage, and how to set them up \u2013 whether you\u2019d like to use referral software or you\u2019re starting with a more manual approach.<\/p>\r\n\r\n\r\n\r\n

What are referral coupons?<\/h2>\r\n\r\n\r\n\r\n

Referral coupons are coupons for your brand that customers distribute to their friends. They can come in the form of either referral coupon codes or referral links, and are unique to every customer.\u00a0<\/p>\r\n\r\n\r\n\r\n

These coupon codes give referred friends an incentive to make their first purchase with your brand \u2013 whether that\u2019s a discount off of their purchase, store credits, or even a free product with a purchase.<\/p>\r\n\r\n\r\n\r\n

When a referred friend uses the code or link to make their first purchase with you, the coupon is applied towards that purchase. But what makes this coupon different from typical coupons?<\/p>\r\n\r\n\r\n\r\n

The coupon is also tied back to the existing customer who shared the coupon,<\/em> so you can track who made the referral and how often each person\u2019s shares result in purchases.\u00a0<\/p>\r\n\r\n\r\n\r\n

As thanks for making successful referrals, you can also credit the existing customer whenever someone uses their coupon. This \u201cdouble-sided\u201d incentive, where both parties get a reward, is where referral coupons are at their best.<\/p>\r\n\r\n\r\n\r\n

Why use referral coupons?<\/h2>\r\n\r\n\r\n\r\n

For your referral program to be successful, it\u2019s not enough for just existing customers to be incentivized to make referrals. You must also offer something of value to referred friends.\u00a0<\/p>\r\n\r\n\r\n\r\n

Referral coupons are the ideal way to motivate referred friends to make their first purchase. Referred friends already trust their peer\u2019s recommendation of your business \u2013 according to Nielsen, 92% of people trust peer referrals more than any other form of advertising. So they\u2019re primed to buy from you after a referral. But often, they need that little extra incentive to encourage them to hit \u201cpay now.\u201d<\/p>\r\n\r\n\r\n\r\n

Coupons also help the referral process seem more altruistic. If you only give a reward to the referring customer, the referred friend might think they\u2019re being \u201cused,\u201d just for their peer to get an advantage.\u00a0<\/p>\r\n\r\n\r\n\r\n

But if the referring customer can give something to their friend, and tell them \u201cHere\u2019s a coupon from me \u2013 you\u2019ll get a $10 discount if you buy, and then I\u2019ll get a reward too,\u201d then both friends are able to help each other.\u00a0<\/p>\r\n\r\n\r\n\r\n

As a result, you\u2019ll see higher successful referral rates<\/a>, higher revenue from your referral program,<\/a> and more purchases overall. Everyone wins!<\/p>\r\n\r\n\r\n\r\n

Types of referral coupons<\/h2>\r\n\r\n\r\n\r\n

There are two main types of referral coupons: referral coupon codes<\/a> and referral links. <\/a>How to choose the type you\u2019ll give out? It depends on whether you\u2019re ready for an automated referral system, or you\u2019re still planning to be more hands-on. Here\u2019s how each coupon type works.\u00a0<\/p>\r\n\r\n\r\n\r\n

The referral coupon code<\/h3>\r\n\r\n\r\n\r\n

With this approach, you can generate unique coupon codes on your own or using our free coupon code generator.\u00a0<\/a><\/p>\r\n\r\n\r\n\r\n

Register all of these codes in your payment platform or ecommerce platform, and assign the value of each code. These codes should only be valid for new customers. This way, people can\u2019t use the code you gave them \u2013 meant for sharing with others \u2013 to simply get a discount for themselves.\u00a0<\/p>\r\n\r\n\r\n\r\n

Your next step is to create your referral program. This involves selecting incentives for referring <\/em>customers (they need a reason to share their coupons!). You\u2019ll also need a place for customers to join the program and receive their coupons.<\/p>\r\n\r\n\r\n\r\n

As people sign up for the program, you\u2019ll assign the referral coupon codes you made\u00a0 \u2013 a unique code for every registered customer. Keep track of who has which code in a spreadsheet.<\/p>\r\n\r\n\r\n\r\n

It\u2019s also important to promote your program and remind people to give the coupon codes to their friends! <\/em><\/div><\/div>\r\n\r\n\r\n\r\n

When a customer shares their coupon code with a friend, the friend can manually enter the coupon during your checkout process. The coupon will be applied to the purchase.\u00a0<\/p>\r\n\r\n\r\n\r\n

You can then match the coupon to the person who made the referral, and manually send them the incentive you promised them.<\/p>\r\n\r\n\r\n\r\n

The referral link<\/h3>\r\n\r\n\r\n\r\n

Referral links allow for much easier referral tracking and coupon distribution, as they\u2019re made with referral software that lets you automate your referral program.<\/p>\r\n\r\n\r\n\r\n

Referral software will automatically generate a unique referral link for each customer who signs up for your program. The links have referral tracking codes embedded inside them.<\/p>\r\n\r\n\r\n\r\n

When someone clicks on a referral link that a friend sent them, the coupon is activated and can be applied towards their purchase. Then, once the purchase is made, the link ties that purchase back to the person who did the referring, and sends that customer their own reward.<\/p>\r\n\r\n\r\n\r\n

Just like with referral coupon codes, you\u2019ll need to choose the value of incentives for referring customers and their friends if you go this route. You\u2019ll also need to promote your program so people are reminded to share the links with their friends.<\/p>\r\n\r\n\r\n\r\n

But an automated referral program<\/a> makes it easy to create a place for people to sign up and receive their links. It also keeps track of who made each referral, and handles the distribution of rewards.\u00a0<\/p>\r\n\r\n\r\n\r\n

Also, if you want to set up a more advanced reward scheme for the referring customers (like tiered or multi-step rewards), you\u2019ll need referral software as that\u2019s too complicated to manage manually.<\/em><\/div><\/div>\r\n\r\n\r\n\r\n

The exact way you\u2019ll set up automated referral coupons depends on the software you use. Below, we\u2019ll go over how this works in Referral Rock.<\/p>\r\n\r\n\r\n\r\n

How to set up referral coupons with Referral Rock?<\/h2>\r\n\r\n\r\n\r\n

To set up referral coupons in Referral Rock, <\/a>go to the Rewards Tab of our Program Editor.<\/p>\r\n\r\n\r\n\r\n

Create the Member Reward<\/strong> \u2013 the reward an existing customer receives as thanks for a successful referral.<\/p>\r\n\r\n\r\n\r\n