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Use Case

Referral program with points as reward

Build a referral program where successful referrals earn loyalty points that customers can later redeem for in-app or store rewards.
Table of contents

Create a referral program that rewards advocates and invited customers with loyalty points instead of discounts or physical rewards. In this recipe, customers earn 100 loyalty points for each successful referral, and those points can later be exchanged for rewards such as free rides in the app.

Why use it?

This setup helps keep the reward value inside your own ecosystem, which can make it more cost-efficient than giving out material rewards or cash-like incentives. It also gives customers more flexibility, since they can decide how to spend their points instead of receiving one fixed reward.

How it works?

Customers share referral codes and earn loyalty points when referrals happen. In the example, one referral equals 100 points, and each referral code can be redeemed up to three times, allowing one loyalty member to earn up to 300 points from the same code.

Best practices

Explain the referral rules and the loyalty point value clearly, because combining referrals with points can be more complex than a standard referral discount. If the program is limited to loyalty members, make that exclusivity visible and actively promote it to them so they know the referral benefit exists.

Are you optimizing your incentives or just running them?