Updated: Feb 15
Take a breather and relax. Wait, feeling confused as to why I’m asking you to get comfortable? Because you’re finally home after a long journey.
Still unclear? Okay, fine. Let me explain. If you’ve landed here, I’m guessing you’ve been wandering for quite some time now.
You probably set out on a journey, trying to understand how you can set up a referral program for your Shopify store.
You crossed various places, came across many referral program apps, and set up guides but is that enough?
I know it’s not because you want the best for your Shopify store and so do I. I understand that building a Shopify referral program is more than installing a referral app.
It’s about putting the right strategy together with regard to choosing the type of referral program, rewards, communication channels, and more.
That’s why I said that you’re finally home and your journey ends here. Because I bring you 5 inspiring referral programs reward strategies for your Shopify referral program.
1. Giving Loyalty Points for Referrals
With this type of referral program, you offer your customers loyalty points for making referrals to your store. The points can be redeemed for discounts on products or even cash.
The best part about this type of referral program is that your customers will spend their loyalty points in your store. This also puts customers in power as they decide how they want to redeem their points.
Let’s explore more about it by taking a look at the referral program of the Unique Vintage Shopify store. Unique Vintage is a vintage clothing and dresses e-commerce brand that offers 2500 points for referring a friend under their loyalty rewards program called Devoted Darling.
Theirs is a one-time referral reward that gives both the referrer and referee $10 off.
Overall, Unique Vintage’s loyalty program with refer and earn has brought them great success with a 48% increase in orders in just 7 months.
2. Offering Amount Discounts
This is one of my favourite kinds of referral rewards because of its uncomplicated nature. All you’ve to do is offer a discount amount to both the referrer and the referee.
It cancels all second thoughts that an advocate or referrer may have because it their friend or referee gets the same discount.
So they can simply go ahead and refer. For example, look at this simple referral program by Allbirds. Allbirds is a Shopify store that crafts footwear using wool fabric, with an annual revenue of $272 million.
This referral program is available under refer a friend section wherein referred friend gets $15 off their first order and the advocate earns $15 off for each friend who completes a purchase.
3. Giveaway Referral Reward Variations
Giving away a free product or a certain discount on specific ones is another way of choosing referral program incentives. You can further improvise this by providing variations.
This is what Shutterfly, a brand that specializes in giving memories live in the form of photo books, decor, gifts, cards, invitations, and more, did.
Shutterfly is a photography product and image-sharing company that runs a unique referral program with 3 reward variations.
Their referral program participants could share swag such as a free photo book, cards, or 40% off on tiny prints and get the same in return. You can also use Free Shipping as part of Giveaway referral rewards. This is a great way to wave off shipping costs for either referrer, referee, or both.
Look at this referral reward with free shipping by Thrive Causemetics, a charitable beauty e-commerce brand that has donated over $100 million in products and cash to non-profit organizations supporting women.
4. Providing Percentage Discounts
Unlike fixed discounts, you can also offer a percentage discount on all or specific products when your customers make a referral.
Based on the minimum or maximum order value of your products, you can simply give a percentage wave-off.
What I like about percentage discounts is that the higher it is, the more appealing it looks to the customer. Moreover, since they don’t show the actual price, it makes even a product with high order value seem like a bargain.
PRESS Healthfoods, a UK-based juice cleanse brand does something similar.
It’s a Shopify store that creates fresh and nutritious cold-pressed juices, juice cleanses and healthy foods.
They have a straightforward referral program that gives a percentage-based referral reward on all products except for subscription ones.
5. Cash Referral Rewards
Who doesn’t like cash rewards, right? I simply love them and if someone told me that we would give you a 10% of my friend’s order value as a cash reward, I’d totally go for it.
This is exactly what Riff Raff Baby, a sleep toy e-commerce brand that offers quality sleep aid baby products, does.
Riff Raff Baby’s referral program is so successful that it has a referral rate of 24%, which is 10 times the industry average of 2.35%.
Take a look at what is it they have to offer as part of their Shopify referral program.
How to Choose the Best Referral Rewards for Shopify?
So what do you think? Did you actually feel at home, and finally understood all the right ways you could incentivize your customers?
Be it fixed, percentage, free product, or cash rewards, what matters is the value you add to a customer who’s putting their social capital at risk and referring your brand.
If you are still feeling doubtful about how to choose the best referral rewards, worry not because our referral program app for Shopify can help you.
You can pick from a wide range of reward types, give fixed or variable rewards, set minimum and maximum order requirements, discount products, and more.
Additionally, you also get to create a referral program that aligns with your branding, nudges customers at the right time of their purchase cycle, and shows performance metrics.
Sounds interesting? Click here to learn more.