How To Create a Referral Program on Shopify?

How To Create a Referral Program on Shopify

Are You Missing Out on Free Traffic and Sales?

If you’re a Shopify store owner, you’re probably always looking for ways to grow your business. You may have tried paid advertising, social media marketing, or email marketing. But did you know that one of the most effective ways to grow your Shopify store is with a referral program?

Referral programs are one of the most effective ways to grow your Shopify store. They’re cost-effective, easy to set up and manage, and trackable. In fact, studies have shown that referral programs can generate up to 50% of all new customers for a business.

So why not start a referral program for your Shopify store today? In this article, we’ll explain how to set up a Shopify Referral program. 

Turn your customers into brand ambassadors with a referral program.

What is the Shopify Referral Program?

The Shopify Referral Program transforms your current customers into brand advocates while generating new customer acquisitions through word-of-mouth sales. When you set up a Shopify Referral Program, you can offer your customers rewards for referring their friends and family to your store. This could be anything from a discount on their next purchase to a free product.

The Shopify Referral Program is easy to set up and use. You can create a custom referral link for each customer, and they can share it on social media, email, or through text message. When someone makes a purchase with the referral link, the referring customer will earn their reward.

The Shopify Referral Program is a great way to boost your sales and grow your business. With its low cost and high impact, this marketing strategy helps you connect with new customers and foster their loyalty.

Why Should You Create a Shopify Referral Program?

A Shopify referral program is a great way to increase customer acquisition and retention, boost sales, and generate positive word-of-mouth for your store. Here are some of the benefits of creating a Shopify referral program:

  • Increase customer acquisition:A referral program can help you acquire new customers by tapping into your existing customer base. When your customers refer their friends and family to your store, they are essentially acting as your salespeople. This approach proves highly effective in reaching prospective customers who already exhibit an interest in your offerings.
  • Boost sales: A referral program can also help you boost sales by encouraging your customers to make repeat purchases. When your customers refer their friends and family to your store, they are more likely to make a purchase themselves. This is because they are essentially getting a commission for each referral.
  • Generate positive word-of-mouth:A referral program can also help you generate positive word-of-mouth for your store. When your customers refer their friends and family to your store, they are essentially giving your store a glowing recommendation. This can be a very powerful way to attract new customers and build brand awareness.
  • Reduce customer acquisition costs:  A referral program can help you reduce your customer acquisition costs. When you acquire new customers through a referral program, you are not paying for advertising or marketing. This can save you a significant amount of money, especially if you are running a large-scale referral program.
  • Increase customer loyalty: A referral program can also help you increase customer loyalty. When your customers refer their friends and family to your store, they are essentially showing that they are happy with your products and services. This can lead to repeat purchases and increase customer lifetime value by 16% than average customers.

If you are looking for a way to grow your Shopify store, a referral program is a great option. It is a low-cost, high-impact way to acquire new customers, boost sales, and generate positive word-of-mouth.

How to Choose a Shopify Referral Marketing Platform.

There are many Shopify referral marketing platforms available, so it can be tough to decide which one is right for you. Here are some factors to consider when choosing a Shopify referral marketing platform:

  • Start by defining your goals. What do you hope to achieve with your referral program? Do you want to increase customer acquisition, boost sales, or generate positive word-of-mouth? Once you know your goals, you can start to narrow down your options
  • Consider your budget. Referral marketing platforms can range in price from free to hundreds of dollars per month. It’s important to set a budget before you start shopping around so you don’t overspend.
  • Think about your customer base. What are your customers like? What are their interests? What rewards would be most appealing to them? Choosing a platform that’s a good fit for your customer base will help you get the most out of your referral program.
  • Read reviews.  Once you’ve narrowed down your options, take some time to read reviews of different referral marketing platforms. This will give you a good sense of what other people have experienced with each platform.
  • Look for features that are important to you. What types of rewards do you want to offer your customers? Do you want to offer discounts, free products, or cash back?. How do you want to track the performance of your referral program? Do you want to track the number of referrals, the amount of sales generated, or the ROI?
  • Integration. Make sure the platform integrates with your Shopify store. This will make it easy to set up and manage your referral program
  • Support. Make sure the platform offers good customer support. This will be important if you have any questions or problems with the platform.

Best Shopify Referral Apps

There are a number of great Shopify referral program apps available. Here are a few of the top options:

  • ReferralCandy: ReferralCandy is a popular and well-established Shopify referral marketing platform. It offers a wide range of features, including customizable rewards, tracking, and integrations.
  • Smile.io: Smile.io is another popular Shopify referral app. It offers a user-friendly interface and a variety of features, including social sharing, email marketing, and analytics.
  • ReferralRock: ReferralRock is a more affordable referral marketing app. It offers a basic set of features, but it is easy to use and integrates with Shopify.
  • Retainful: Retainful is a referral marketing platform that focuses on customer retention. It offers a variety of features, including automated email campaigns, personalized rewards, and analytics.
  • Shopjar – Referral and Affiliates: Shopjar is the best Shopify referral marketing app that also offers affiliate marketing features. It offers a wide range of features, including customizable rewards, tracking, and integrations.

These are just a few of the many popular Shopify referral apps available. The best platform for you will depend on your specific needs and budget.

How to Set Up Your Referral Program on Shopify

Referral marketing is one of the most powerful organic methods to increase your store revenue. It helps you turn your existing customers into brand ambassadors who can bring in their friends as new customers.

Shopjar is a tool that can help you create and automate a referral program for your Shopify store. With Shopjar, you can easily set up a referral program that rewards your customers for referring their friends. You can choose from a variety of reward options, such as discounts, free products, or shipping perks.

Shopjar also makes it easy to track the performance of your referral program. You can see how many referrals have been generated, how many new customers have been acquired, and how much revenue has been generated.

If you’re looking for a way to increase your store revenue, referral marketing is a great option. And Shopjar is the perfect tool to help you get started.

This guide will help you set up the Referral program in a few simple steps:

Discover the step-by-step process to create a Give $10 Get $10 referral program, also known as a fixed reward-based referral program. This guide will assist you in setting up your program using the Shopjar: Referral & Affiliate app on Shopify. Follow these user-friendly steps to implement a successful referral program that motivates advocates and benefits their referred friends.

Step 1: Access Shopify and Open Shopjar: Referral & Affiliate

To begin, log in to your Shopify account and launch Shopjar: Referral & Affiliate app.

Step 2: Go to Programs and Click “Create a Reward”

Within the Shopjar: Referral & Affiliate dashboard, locate the “Programs” tab and proceed by selecting “Create a reward.”

Creating a reward

Step 3: Choose Who Receives the Reward

A pop-up page titled “Choose who gets this reward” will appear. Identify the two main participants in your referral program: the advocate and the friend.

Choosing who receives the reward

Step 4: Set Up the Friend’s Reward

Select the “Friend” option and define the fixed reward amount for the friend, such as $10.

Step 5: Configure the Reward Type

After creating the reward, choose the “Fixed Discount” option as the reward type. Enter the reward value as “10” and save your settings.

Configuring who receives the reward

Step 6: Define Additional Requirements (Optional)

Optionally, set additional requirements, such as a minimum purchase amount or quantity of items. Consider adding a “First Order” condition if it aligns with your program goals.

Step 7: Test Your Referral Program

To ensure the effectiveness of your referral program, follow these testing steps:

  • Share the referral link with friends.
  • Friends should click the referral link and provide their email address to receive the reward coupon.
Claiming your reward
  • Upon clicking the “Claim Reward” button, the coupon will be displayed.
  • Friends should copy the coupon and proceed with their purchase.
Copy discount coupon code
  • At the payment page, apply the copied coupon to automatically redeem the $10 fixed reward.
Applying Discount coupon code

Get more customers and sales with a referral program that’s easy to set up and manage.

What is the best way to promote a referral program?

Once you have set up your referral program, you need to promote it to your customers. Here are a few tips for promoting your referral program:

  • Email marketing: Email is a great way to reach your existing customers and let them know about your referral program. You can send out a welcome email to new customers, or you can send out periodic reminders to existing customers.
  • Social media: Social media is another great way to promote your referral program. You can create posts and ads that promote the program, and you can also encourage your customers to share their referral links on their own social media accounts.
  • Your website: Make sure to prominently display your referral program on your website. You can include a link to the program in your footer, or you can create a dedicated landing page for the program.
  • In-store promotions: If you have a brick-and-mortar store, you can promote your referral program in-store as well. You can put up posters or flyers, or you can offer in-store discounts to customers who refer their friends.
  • Word-of-mouth: The best way to promote a referral program is through word-of-mouth. If your customers are happy with your products or services, they’re more likely to refer their friends. You can encourage word-of-mouth by offering referral bonuses that are more valuable than the standard rewards.
  • Create a referral landing page: A dedicated landing page is a great way to explain your referral program in detail and provide clear instructions on how to participate. You can include a link to the landing page in your email marketing campaigns, social media posts, and other promotional materials.
  • Run a referral contest: A referral contest is a great way to generate excitement and engagement around your referral program. You can offer a grand prize to the customer who refers the newest customers, or you can offer smaller prizes to all participants.
  • Partner with other businesses: You can partner with other businesses to promote your referral program.

Best referral program examples

Here are some of the best referral program examples:

1. PayPal: PayPal’s referral program is one of the most famous referral programs. It offers a $10 reward for both the referrer and the referee. The reward is given in the form of a PayPal credit, which can be used to make purchases on PayPal.

P2P Referral Program PayPal US

2. Dropbox: Dropbox’s referral program offers 500 MB of free storage space to both the referrer and the referee. This is a great way to attract new users to Dropbox, as they can get a free upgrade to a higher storage plan. 

Dropbox referral program

3. Airbnb: Airbnb’s referral program offers $30 to both the referrer and the referee. The reward is given in the form of a travel credit, which can be used to book a stay on Airbnb.

Airbnb Referral Program

4. Tesla: Tesla’s referral program offers a variety of rewards, including free Supercharging miles, $1,000 credit, Tesla merchandise, and even a Tesla car. The rewards are based on the number of referrals that a customer makes.  

Tesla Referral Program

5. Good AirX: Good AirX is an Air Purifier company that offers a referral program that rewards both the referrer and the referred friend. The referrer receives a 10% off for each new customer they refer, and the referred friend receives a 7% off discount on their first purchase.

Good Air X Referral Program

6. Evernote: Evernote is a note-taking app that offers a referral program that rewards both the referrer and the referred friend. The referrer receives 10 points for each new customer they refer, and the referred friend receives a free month of Evernote Premium

Evernote referral Program

7. ZooShoo: ZooShoo is a footwear company that offers a referral program that rewards both the referrer and the referred friend. The referrer receives a $10 credit for each new customer they refer, and the referred friend receives a $10 discount on their first purchase.

ZooShoo Referral Program

8. Thrive Causemetics: Thrive Causemetics is a cosmetics company that offers a referral program that rewards both the referrer and the referred friend. The referrer receives a 10% commission on any sales made by the referred friend, and the referred friend receives a free gift with their first purchase.

Thrive Causemetics referral program

9. ASOS: ASOS is a fashion retailer that offers a referral program that rewards both the referrer and the referred friend. The referrer receives a 20% discount on their next purchase for each new customer they refer, and the referred friend receives a 10% discount on their first purchase.

ASOS Referral Program

10. Glossier: Glossier is a cosmetics company that offers a referral program that rewards both the referrer and the referred friend. The referrer receives a 10% commission on any sales made by the referred friend, and the referred friend receives a free gift with their first purchase.

Glossier Referral Program

These are just a few more examples of successful referral programs for ecommerce stores. By following the tips I mentioned earlier, you can create a referral program that will help you acquire new customers, increase sales, and build customer loyalty.

Reward your customers for referring to their friends and family.

Conclusion

Referral marketing is a powerful way to grow your Shopify store. By creating a referral program that rewards your customers for referring their friends, you can generate new leads and sales.

There are many different ways to create a referral program on Shopify. You can use a third-party referral software program, or you can use the built-in referral program features that are available in Shopify.

No matter which method you choose, make sure to promote your referral program effectively. Use email marketing, social media, and your website to let your customers know about the program and how they can participate.

If you do it right, your referral program can be a valuable asset to your Shopify store. It can help you grow your customer base, increase your sales, and boost your bottom line.

So what are you waiting for? Start creating your referral program today!

What is a referral program?

A referral program is a marketing strategy that rewards customers for referring their friends and family to your business. When a customer refers a friend, they are given a reward, such as a discount, free product, or entry into a contest. The friend who is referred is also typically given a reward, such as a discount or free shipping.

How do I create a referral program on Shopify?

There are a few different ways to create a referral program on Shopify. One way is to use a third-party referral software app. There are many different referral software apps available, and they typically make it easy to set up and manage your referral program. Another way to create a referral program is to use Shopify’s native referral program feature. This feature is not as robust as some of the third-party referral software apps, but it is a good option if you are on a budget.

What are some good rewards for a referral program?

The best rewards for a referral program are those that are valuable to your customers. Some popular rewards include discounts, free products, free shipping, and entry into contests. You can also offer more personalized rewards, such as gift certificates to their favorite restaurants or coupons for their favorite stores.

How do I promote my referral program?

There are many ways to promote your referral program. One way is to email your existing customers about the program. You can also promote the program on your website, social media, and in-store. You can also run referral contests or partner with other businesses to promote the program.

How do I track the results of my referral program?

It is important to track the results of your referral program so you can see what is working and what is not. You can track the number of referrals, the number of new customers, and the amount of revenue generated by the program. You can also track the number of clicks on your referral links and the number of times your referral links have been shared.

How do I set up a referral program on Shopify?

To set up a referral program on Shopify, you can use a third-party referral software app or Shopify’s native referral program feature. If you are using a third-party referral software app, you will need to create an account with the app and then follow the instructions to set up your program. If you are using Shopify’s native referral program feature, you will need to go to your Shopify admin and then click on the “Marketing” tab. From there, click on the “Referral Program” section and then follow the instructions to set up your program.

What are the benefits of having a referral program?

There are many benefits to having a referral program. First, referral programs can help you acquire new customers. When your existing customers refer their friends and family to your business, you are essentially getting free advertising. Second, referral programs can help you increase your sales. When your new customers make a purchase, they are more likely to become repeat customers. Third, referral programs can help you build customer loyalty. When your customers are rewarded for referring their friends, they are more likely to stay loyal to your business.

What are some common mistakes to avoid when creating a referral program?

There are a few common mistakes to avoid when creating a referral program. First, you should not make the rewards too complicated. Your customers should be able to understand how to earn the rewards and how to redeem them. Second, you should not make the referral process too difficult. Your customers should be able to easily share their referral links with their friends. Third, you should not set your expectations too high. Referral programs can be a great way to acquire new customers, but they should not be your only marketing strategy.

What are some resources for learning more about referral programs?

There are a few resources that you can use to learn more about referral programs. First, you can check out the Shopify documentation on referral programs. Second, you can read blog posts and articles about referral programs. Third, you can attend webinars and workshops about referral programs.

Are you looking to boost your sales and grow your customer base through referral and affiliate marketing?