Information and guidance on reducing/mitigating the impact of leaked referral codes
When it comes to mitigating leaked referral codes, there are two main defences available. Below, you will find an explanation of the upsides and downsides of both options.
It's important to weigh the potential business risks against the importance of advocates (and customers) having a positive user experience.
If you have any additional questions, please don't hesitate to speak with your BSE. They will be able to provide further guidance and help you make an informed decision.
Defence 1 - Redemption Limit
The primary way to reduce the impact when referral codes inevitably leak is by decreasing the redemption limit on them.
Example: Set referral code limit to 50 uses, when this limit is reached the advocate will be automatically distributed a new code.
You can modify the referral code rule on your e-commerce platform, and we will match the limit in duel. This means that when the limit is reached, a new code will be issued.
However, there is a downside to this approach as it may negatively impact the user experience for advocates. The frequent changes in referral codes could mean that codes shared in the past may no longer be valid when others try to use them. This can lead to frustration for both advocates and customers.
Defence 2 - Referral Code In Affiliate link
The other option is to reduce the likelihood of referral codes being leaked by concealing the discount in the affiliate link itself.
Most e-commerce platforms allow will be able to support this, once the setup has been confirmed this can be set up in the E-store as either a path or parameter, see examples below.
There is a drawback to this approach, however. Ambassadors may not be able to directly share their codes on certain post types that do not support links, such as Instagram in-feed posts.
Additionally, it is important to note that this strategy will not completely prevent codes from eventually leaking, as services like Honey can still extract the code from the checkout. Nevertheless, implementing this strategy will help reduce the likelihood of code leakage occurring.
Using both defence 1 and 2 in combination can be effective when there is a high frequency of leaks. By reducing the redemption limit on the referral code, & hiding the code in the affiliate link, advocates can continue sharing the link, knowing that the discount will automatically be added to the cart.
This ensures that the code remains valid and eliminates any frustration for advocates and customers.
Defence 3 - New Customers Only
Another defence against leaked referral codes is to limit their use to new customers. While this approach does not directly address code leakage, it can help brands gain more value from potential leaks and reduce misuse. Implementing this defence requires setting the referral codes as applicable only for new customers on the brand's e-commerce platform.
It's important, however, for brands to carefully consider the potential drawbacks of this approach, as it may alienate existing customers.
It is important to note that this defence needs to be implemented on the brand's e-commerce platform and is not within the control of Duel. It is recommended to include a clear explanation in the platform that the referral codes are exclusively for new customers.