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Double-sided Referral Program

Double-sided Referral Program

A referral program that rewards both, the referrer (advocate) and the referee (invited friend).

Example

Offer a 10% off the next order for both, referrer and referee, applicable once per customer for orders above $30. For referees, limit the use to only new customers and add free shipping on top. Referrers get their reward only if the referee pays for their first order using their discount voucher.

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Advocacy
Double-sided Referral Program

Double-sided Referral Program

A referral program that rewards both, the referrer (advocate) and the referee (invited friend).

Example

Offer a 10% off the next order for both, referrer and referee, applicable once per customer for orders above $30. For referees, limit the use to only new customers and add free shipping on top. Referrers get their reward only if the referee pays for their first order using their discount voucher.

Main Benefits

This type of refer-a-friend program is great for getting referrals and for the acquisition of referees. As it grants a discount or a perk for those referred, it is encouraging them to purchase from you for the first time. 

As the referrers will probably use the discount they got if they place an order with you, it is easy to attribute the referrals to their results. In the case of a single-sided referral program, it is much more difficult to attribute the referrals to the actual sales as the referees may come back to your site later from another link than the one they got from their friend. 

It is easier to track if the referral was successful, therefore you can reward only the successful referrals (these, where the referee placed an order), not all referrals. 

Best Practises

  • If you change from a single to a double-sided referral program, the cost does not have to be double. Imagine you offered 10% off for referrers previously. You can split the discount and offer 5% off for both, referrer and referee. 
  • Cap the number of referrals you want to incentivize per referrer (for example, a maximum of three referrals per person) to protect your budget from abuse. 
  • Set the condition of a successful referral that is right for your business. What do you consider a successful referral? If the referee places an order or several orders? Is there any minimum order value? If the referee subscribes to your services for a certain amount of time, without cancellations? If the referee visits your website? Decide, what the conversion event is in your case and reward only these referrals that meet that condition. 
  • If you add the referee discount as a unique discount voucher it will make it easy to track, which referrals were successful and which were not.

Learn from Leaders

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