Tiered referrals

Create a referral program that gives referrers better rewards as they successfully bring in more people. In this recipe, a referrer gets a $5 gift card after one successful referral, then unlocks a 30% discount on their next purchase after three successful referrals.

Why use it?

This setup helps motivate advocates to go beyond a single referral by making the reward more valuable as they progress. It also adds a light gamification layer, which can make the program more engaging and worthwhile for participants.

How it works?

You create referral tiers tied to the number of successful referrals. Each new milestone unlocks a stronger reward, so customers have an incentive to keep referring instead of stopping after the first success.

Best practices

Set tier rewards carefully so the program stays profitable. Voucherify recommends testing whether higher rewards for later referrals actually outperform a slightly stronger reward for the first referral. Keep reward values growing, but not so aggressively that they hurt margins or attract fraud, and consider setting a cap on the maximum number of referrals per participant.