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Gift Cards vs Coupons: Choosing the Right Referral Reward

Gift cards and coupons both work as referral rewards, but they serve different purposes. Here's when to use each — and how to combine them for maximum impact.

VTViralRef Team
2 minutes read
Side-by-side comparison of a Square gift card and a discount coupon on a salon reception desk

ViralRef now supports two automatic reward types for your referral programs: gift cards and coupons. Both integrate directly with Square POS. Here's how to choose between them — or use both.

Gift Cards: Keep the Money In-House

Gift card rewards add credit to a Square gift card that can only be redeemed at your business. The money never leaves.

Best for:

  • Rewarding existing referrers who already visit your business
  • Programs where you want to guarantee return visits
  • Higher-value rewards that build long-term loyalty

When a conversion is approved, the referrer's gift card balance increases automatically. No manual work required.

Coupons: Drive the First Visit

Coupon rewards create an auto-apply discount in Square. When the customer checks out at your POS, the discount applies automatically — no code entry, no awkward conversation at the register.

Best for:

  • Welcome rewards for new referred customers
  • Lowering the barrier to a first visit
  • Time-sensitive promotions (coupons can have expiration dates)

Coupons are single-use. Once redeemed, the customer is removed from the discount group automatically.

Mix and Match: The Best of Both

You can set independent reward types for each side of the referral:

  • Referred customer gets a coupon (removes friction from their first visit)
  • Referrer gets a gift card (motivates them to keep sharing and come back)

This combination is powerful for service businesses. The coupon gets new customers through the door, and the gift card keeps your referral network engaged.

Coupon Configuration Options

When setting up coupon rewards, you control:

SettingOptions
Discount typeFixed amount ($10 off) or percentage (15% off)
ScopeEntire order, specific items, or specific categories
ExpirationOptional — set a number of days before the coupon expires

Quick Setup

  1. Open your referral program in ViralRef
  2. Set Reward Mode to "Coupon" for referred customers
  3. Configure the discount type, value, and scope
  4. Optionally set Referrer Reward Mode to "Gift Card" for a mixed approach
  5. Save — coupons are issued automatically from that point on

For full configuration details, see our Creating a Program guide.