Referral Tier Definition

Referral tier, similarly to a cart promotion tier or a loyalty program tier, is a specified level within a referral program that offers different conditions and rewards than other available tiers. Usually, tiers are used to gamify a campaign and increase user engagement by offering better rewards at higher levels.

For example, you can run a referral program where 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 (with a limit of three referrals maximum).