How Referral Loyalty works?

The Referral Loyalty system allows businesses to drive customer acquisition and engagement by rewarding existing customers for introducing new users to the platform. By offering a double-sided reward, both the existing user (referrer) and the new user (referred user) receive loyalty points upon a successful signup.

1. Introduction

Customer acquisition is a major driver of growth for salons and spas. The Referral Loyalty feature automates this loop. Existing clients share referral codes, and when new clients sign up, the system automatically adds loyalty points to both accounts. This drives brand loyalty and word-of-mouth promotion.

2. User Roles & Permissions

Different users have distinct roles in managing and using the Referral Loyalty program:

• vendor:
  • Has full permission to create, update, and toggle the status of the Referral Loyalty rule.
  • Monitors overall referral history and reward distribution.

• Customer / End User:
  • Obtains their unique referral link or referral code from their profile section.
  • Shares the link/code with friends.
  • Views earned loyalty points from referrals in their profile history.

3. How it Works

The Referral Loyalty system functions by connecting user registration referrals to the business’s overall loyalty wallet. Points earned are credited to the customer’s wallet history and can be redeemed as discount rewards during product or service checkouts.

3.1 Earning Criteria & Logic

When a new guest registers on the platform, the system evaluates the active referral rules based on the following criteria:

• Active Status and Date Validation: The system checks if there is an active Referral Rule and whether the current date falls within the configured Expiry Date Range.
• Referral Link or Code Verification: The guest must register using a valid referral link or by manually inputting an active user’s referral code during registration.
• Referred User Points Award:
  • If a referrer is successfully identified, the newly registered user automatically receives the points configured in the Referred User Points field.
• Referrer Points Award (with Limit Control):
  • The referrer receives the points defined in the Referrer Points field.
  • Maximum Referrals Limit Check: Before crediting the referrer, the system counts their total successful referrals. If this count meets or exceeds the Max Referrals Per User limit, the referrer does not receive any points for this referral. However, the newly registered user still receives their referred points.

3.2 Redeeming Criteria & Logic

Loyalty points accumulated from referrals are saved in the user’s wallet. Customers can redeem these points during the booking checkout process on services and products based on the following configured Redeem Rules:

• Redeem Rule Types:
  • Full Redeem: To unlock a discount, the customer’s active points balance must be greater than or equal to the defined Points Threshold (e.g. 100 points). Meeting this threshold grants a fixed discount amount (e.g. $10 off).
  • Partial Redeem (Slabs): Points are redeemed based on custom-defined ranges (slabs). Each slab defines a range of points (Point From to Point To) and its corresponding discount value (e.g. 10-50 points = $5 off, 51-100 points = $10 off). The system identifies which slab the customer’s available points fit into and applies the corresponding discount.
• Discount Capping: The discount amount generated by redeeming loyalty points is automatically capped so that it never exceeds the total payable transaction amount before the redeem step.
• Service/Product Applicability: Admin rules can restrict point redemption to specific services or products, or allow them to apply globally to all checkout items.

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4. Workflows

Configuring the Referral Loyalty Rule (Administrator)

Follow these steps to set up or modify the referral program rules:

1. Navigate to the Loyalty Rule Settings in the administrator backend.
2. Select the Referral Rule tab.
3. Enter the amount of points for both the Referrer and the Referred User.
4. Set the Max Referrals Per User to limit how many times a customer can earn referral rewards.
5. Select the Expiry Date Range using the date-picker calendar.
6. Set the status to Active to activate the rule.
7. Click Add Referral Rule (or Update Referral Rule if modifying an existing one).

Sharing and Redeeming Referrals (Customer)

1. Log in to the customer portal/app.
2. Go to the My Referrals or Loyalty Points page.
3. Copy the referral link or code.
4. Share the link or code with a friend via email or social media.
5. The friend clicks the link, filling out the registration form.
6. Upon form submission, the signup completes, and the points credit to both points wallets instantly.

5. Configurable Settings

Administrators can customize the referral rewards using the settings below:

Field Name	Type	Description	Mandatory
Referrer Points	Numeric Input	The number of loyalty points credited to the existing customer who shares the referral link/code.	Yes
Referred User Points	Numeric Input	The number of loyalty points credited to the newly registered customer.	Yes
Max Referrals Per User	Numeric Input	The maximum number of successful referrals for which a single user can earn rewards.	Yes
Expiry Date Range	Date Range	The active dates (start date to end date) during which the referral program is valid.	Yes
Status	Select Dropdown	Toggle between Active (rule is live and points are awarded) and Inactive (rule is disabled).	Yes

6. Limitations and Caveats

• Single Active Rule: Only one referral loyalty rule can be active at any given time.
• Unique Accounts: Points are only awarded for new, unique user registrations. Duplicate account creation to exploit points is subject to security constraints.
• Sign-up Bound: The points are credited immediately upon successful user registration, independent of whether the referred user books a service or buys a product.

7. Booking-Based Loyalty Earn Rules (Earning from Bookings)

Apart from referring new users, customers earn loyalty points by booking services or purchasing products. Earning is driven by admin-configured Earn Rules.

7.1 Earning Criteria & Calculation Logic

Points for a paid booking or purchase are evaluated for each individual item (service or product) in the cart:

1. Item Match: The system checks if the service or product is mapped under an active Earn Rule’s eligible items. If an Earn Rule has no specific items selected, it applies globally to all items of that type (Service or Product).
2. Amount Range Check: The subtotal price of the purchased item must be within the rule’s configured Minimum Amount and Maximum Amount (inclusive).
3. Expiry Validation: The transaction date must fall within the rule’s configured active date range.
4. Points Calculation (Stackable vs. Non-Stackable):
   • If multiple active rules cover the same item, the system calculates the payout using stackable rules:
     • Stackable Rules (is_stackable = 1): The points from all matched stackable rules are added together.
     • Non-Stackable Rules (is_stackable = 0): The system selects the matching non-stackable rule with the highest point value.
     • Result: The user is awarded whichever value is higher between the sum of all stackable rules and the highest single non-stackable rule:$$\text{Awarded Points}=\max (\sum \text{Stackable Points},\max (\text{Non-Stackable Points}))$$Awarded Points=max(∑Stackable Points,max(Non-Stackable Points))
5. Timing: Points credit to the customer’s wallet immediately after successful payment/completion of the booking or order.

7.2 Administrator Configuration Settings

Administrators can set up these rules via the Earn Rule tab. The configurable settings are:

Field Name	Type	Description	Mandatory
Loyalty Type	Select Dropdown	Choose Service (for appointments/bookings) or Product (for e-commerce/retail purchases).	Yes
Service/Product Select	Multi-Select	Select specific items that qualify. Leave blank to apply globally to all items.	No
Minimum Amount	Numeric Input	The minimum price of the item required to trigger the rule.	Yes
Maximum Amount	Numeric Input	The maximum price limit for the item to qualify for points.	Yes
Points Earned	Numeric Input	The quantity of loyalty points awarded to the client’s wallet upon purchase.	Yes
Expiry Date Range	Date Range	Date range within which the rule remains live and active.	Yes
Status	Select Dropdown	Toggle between Active and Inactive.	Yes
Stackable	Toggle Switch	If enabled, points from this rule can be combined with other stackable rules covering the same item.	Yes

The Referral Loyalty and booking-based Loyalty programs work together to drive both passenger acquisition and regular booking behaviors. By automating double-sided referral incentives and configuring detailed service/product earn rules, businesses can build a robust loyalty ecosystem.