When setting up a referral programme, choosing the right reward type is key to driving participation and converting both referrers and referees. In this article, you’ll learn about the various reward types available through Mention Me, ranging from discounts and gift cards to free products and third-party vouchers. We’ll also cover important considerations like spend constraints and reward fulfilment methods. Understanding how each reward type works will help you create more compelling referral offers that motivate customers and support your business goals.
Reward types are essential incentives used to motivate and engage customers in referral programs. Offering rewards is crucial because:
- Direct Incentive: Rewards act as a direct incentive for referrers, essentially compensating them to advocate for your brand.
- Referral Usefulness: Rewards add value to the referee, ensuring referrers feel they are genuinely assisting their friends.
Do not run a referral program without either a referrer or referee reward, as they are critical to its success.
Before setting up rewards, make sure to read our article on optimising incentives.
Common Reward Types
Discount Off Next Purchase
Offers referrers and/or referees a discount on a future or initial purchase (either percentage-based or fixed amount).
Example: £5 off for the referrer and 20% off for the referee.
Free Item Options
Assigns specific items as rewards (e.g., 10 free pencils for the referrer, 10 free lipsticks for the referee).
Free Gift
Provides a single item as a reward (e.g., a free camera) for both parties after a qualifying purchase.
Third-Party Voucher
Suitable for businesses without repeat purchases. Contact support@mention-me.com for setup details.
Gift Card for Next Purchase
Provides a gift card for your brand as a customer reward.
Amount on Account
Adds points or monetary value to a customer's account for future use or combination with existing points.
Spend Constraints
Spend constraints are rules that dictate how rewards can be used. Common types include:
Minimum Spend
Customers must meet a minimum purchase amount to utilise a discount (e.g., spend £50 to use a £10 off coupon).
Specific Products or Categories:
Discounts apply only to certain items or categories (e.g., 20% off clothing but not electronics).
Reward Fulfilment
Most rewards are fulfilled via voucher codes, especially discounts. For more details on different fulfilment methods, refer to our help article on reward fulfilment.