A referral program for Shopify stores is one of the best ways to increase sales. You can use your existing customers to become your brand advocates through referral marketing.
Identify loyal customers open to spreading your brand’s love through word-of-mouth marketing. Shopify’s referral program is a way to reward these customers for their efforts in bringing in new referrals and sales.
You will learn in this blog everything you need to know about creating a referral program for your Shopify store from its importance to benefits to best practices. If you follow the instructions in this blog, you can set up your referral marketing for Shopify in minutes.
Leverage Afflr’s referral program to automatically convert existing customers into brand ambassadors.
What is a Shopify Referral Program?
A Shopify referral program is a way to reward your existing customers with discounts or commissions in return for encouraging their friends and family to shop in your Shopify store.
It is a form of affiliate marketing but instead of recruiting affiliates or influencers, you can partner with your own customers.
What makes a customer referral program more beneficial than the rest is that it creates a win-win situation.
- The Shopify merchants can get new customers and sales while maintaining a healthy engagement with existing customers.
- Brand advocates of the Shopify store can get offers and cash rewards for referrals.
- Referred customers can benefit from additional discounts.
Several Best referral apps for Shopify stores can help you create and manage your partner program with ease.
Why Create a Referral Program for Shopify?
Creating a referral program for Shopify is a way to bring more sales and a strong customer acquisition strategy. However, its benefits don’t end there. You can understand how satisfied your existing customers are, what are the most recommended products, and ensure an increase in repeated purchases.
83% of customers are open to recommending the products they use to others. On the other hand, 92% place their trust in recommendations before making a purchase.
These high numbers are the reason in itself why a referral program is a must-have for your store. Tapping into this potential word-of-mouth marketing strategy can open doors to many quality leads and help customer retention through referral rewards.
How Does a Shopify Referral Program Work?
A Shopify referral program works straightforwardly and effectively. You can encourage your existing customers to promote your business to their friends and family. In return for their efforts, you can give them attractive incentives in the form of Store credits and other referral rewards.
The steps to launch a referral campaign on Shopify are:
1. Launch Your Referral Program
Create a program that offers compelling double-sided incentives, i.e. referral incentives and customer discounts.
2. Generate Unique Referral Links or Codes
Create an affiliate link or referral code for each customer that they can easily share with their network.
3. Encourage Customers to become brand advocates.
Motivate customers to share your products with friends and family by using their unique referral link or code when making purchases.
4. Monitor Key Performance Metrics
Keep track of important metrics related to sales, rewards, and referral activity to evaluate the program’s success.
5. Analyze and Optimize
Regularly review and optimize your referral partner program to maximize output and enhance customer engagement.
Additionally, integrating your referral program with a loyalty program in Shopify can provide customers with loyalty points that they can redeem for future purchases.
Scaling your referral marketing is seamless as it can grow alongside your customer base. By using a Shopify referral app, you can automate your marketing campaigns, reducing manual labor and streamlining the entire process.
How to create a Referral Program in Shopify?
To successfully start a referral program for Shopify, you need to follow specific steps to structure your refer-a-friend marketing campaign effectively.
Choose a Shopify Referral App
One of the most crucial elements is to use a dedicated Shopify referral app that automates the process, making it easier to manage your referral program.
Afflr stands out as a comprehensive solution for all your referral as well as affiliate marketing needs in Shopify. This user-friendly and mobile-responsive referral app is affordable and has the required analytics integration for referral campaigns.
With Afflr, you can effortlessly create a referral marketing program, set up flexible rewards and discounts, manage referral links, and add customers as brand ambassadors. Additionally, Afflr allows you to monitor performance metrics, enabling you to refine your strategies for maximum impact.
Create a Shopify Referral program.
To create a Shopify Referral Program, Go to your Shopify admin dashboard -> Apps -> Afflr -> Programs and then click on the Add Program button.
You can customize the program concerning referral incentives, discounts, and other conditions like sale limits, expiry dates, etc. Once the program is set, you can simply click save and you are good to go.
Here is an example of a simple referral program for a Shopify store that gives 10% rewards and 10% discounts to customers.
Furthermore, Afflr also allows additional features that can help customize your referral program.
These additional features include activating recursion commission, setting minimum requirements, setting usage limits, or limiting to one use per customer.
In addition, you can also set reward tiers for loyal customers and increase their rewards based on performance.
How to Add Customers as Brand Advocates?
There are multiple ways to add customers as brand advocates in Shopify using Afflr. They are:
- Manually Adding Customers by Admin
- Referral Sign-Up Form
- Thank You Form for Referral Conversions
- Automatic Conversion to Referral Partner
Afflr offers all these ways through which you can add members to your customer referral program and build your Shopify referral network.
1. Manually Adding Customers by Admin
To add customers manually by admin, Go to your Afflr admin dashboard -> Affiliates and click on the Add Affiliate button.
You can enter all the details as shown in the screenshot and click save.
2. Referral Sign-Up Form
A dedicated signup form for your Shopify referral program makes it easy to share on social media, thereby increasing the reach of the program. This will considerably increase the signups.
With Afflr, you can create an attractive signup form like the following and embed the signup form in your Shopify store.
3. Thank You Form for Referral Conversions
A thank you form will be ideally placed on the order confirmation page. Once, the customer completes their order, you can display a Thank you page that displays an invitation to become part of your Shopify referral program.
This Thank you page for the referral program in Shopify can be easily created using Afflr. Following this, you can add the Thank you page to the Shopify store and easily turn loyal customers into brand advocates.
4. Automatic Conversion to Referral Partner
Afflr has provisions to directly convert every customer who shops with you into your brand advocate. A unique referral link is created for them and they are added to your referral program.
One of the key benefits of this feature is that your referral network in Shopify can be expanded effortlessly. Enabling this feature in Afflr is as simple as just toggling a button.
Turn happy customers into advocates using a Thank you page in order confirmation page with Afflr.
How to Track and Manage Shopify Referral Performance?
Tracking and managing Shopify referral performance provides valuable insights. These insights can help you analyze, refine, and optimize your Shopify referral program strategy. Real-time tracking of referrals can help drive more sales and increase revenue.
(i) Track Referral Sales
To monitor referral sales with Afflr, navigate to your Afflr admin dashboard -> Sales.
You’ll find a comprehensive overview of all referral sales generated through customer promotions as shown in the screenshot.
(ii) Track Referral Rewards
To keep an eye on the affiliate commissions, go to your Afflr admin dashboard -> Commissions.
This section lists all rewards awarded to customers for their successful referrals, allowing you to manage and optimize your referral rewards strategy.
As shown in the screenshot, all rewards awarded to customers for their referrals can be viewed.
You will be easily able to identify who brings the highest sales, which commission structure works, what payment method referral partners prefer, etc.
This will help you build a more effective referral partner program campaign for Shopify.
Reward Payout Options for Referral Programs
Paying rewards to customers with Afflr is a streamlined process. Customers who make a successful sale will be placed in the payout queue automatically. You can choose when and how these customers will be rewarded.
The five modes of payout available for the Shopify referral program are:
- Manual payout
- PayPal payout
- Gift Card
- Coupon
- Store Credit
Using Afflr, to initiate the process of payout to the affiliates, Go to your Afflr admin dashboard -> Payouts.
Click Pay to choose the amount to be paid and payment mode.
Afflr also offers provisions for bulk payout of referral payouts.
Having multiple reward payout options will increase the interest of the customers. Using a referral app will maintain a transparent record of all the payout history.
Best Practices for Optimizing Shopify Referral Programs
The best practices for optimizing Shopiy referral programs are:
Multi-Tier Referral Programs
Using a multi-tier referral program, you can revise the referral incentives based on the performance of the customers. The more sales they bring, the more percentage of commission they can gain. This is particularly designed to identify top-performing referral partners and reward them to work more. This will keep the customers motivated to work efficiently.
Here is a simple example of how a multi-tier referral commission is set based on sales.
Referral and Loyalty Program Integration
Integrating referral and loyalty programs can grow your customer retention and engagement. By rewarding customers for both referrals and repeat purchases, you can increase customer lifetime value. According to reports, loyalty programs make 85% of customers continue shopping with the brand.
Transparency in Referral Program Terms
Transparency in referral program terms is important to build customer trust. Clearly outlining rules, rewards, limitations, conflict-resolving techniques, etc. This will help eliminate confusion. Providing a FAQ section to address common questions for better user experience.
Incentives for Customer Signups
Gift something to anyone joining your customer referral program even before they start referring. This extra reward will excite the customers and help them work harder. If this initial incentive is a store credit or discount, then the chances for customers to purchase with your brand will be higher.
Here is an example of how a clothing brand Aroka offers 50 loyalty points as a signup bonus.
Examples of Successful Shopify Referral Programs
A great example of a successful referral program is boAt. It is a popular Indian brand known for its affordable audio products and wearables.
Targeting a youthful audience, boAt used its Shopify store to launch a referral program aimed at increasing customer engagement and acquisition.
boAt’s referral program offered 100 reward points to both the referral partner and referee for every successful referral. This was believed to encourage both parties to participate.
According to reports, this Shopify brand is believed to have achieved a 12% boost in new user acquisition, and a 40% jump in referral-driven sales.
Thus a clear objective, clever campaigning, and the use of an efficient referral app in Shopify can hugely contribute to the success of your refer-a-friend marketing campaign.
Create a loyal customer base by rewarding referrals with Afflr. Strengthen your relationships while expanding your reach!
Conclusion
A carefully set up Shopify referral program can drive customer acquisition, retention, and revenue growth.
Use the insights shared in this blog to design your first referral program and begin your referral marketing journey.
With the right strategy and tools, you can elevate your business, increase customer engagement, and achieve sustainable growth through a loyal network of brand advocates.
Further Reading
- 11 Best Customer Referral Program Examples for DTC Shopify Store
- How to Create an Affiliate Program in Your Shopify Store
- A Guide to Shopify Influencer Marketing
- 9 Types of Affiliate Commission Models in Affiliate Marketing
To set up a referral program on Shopify, you need to follow specific steps like:
1. Choosing a Shopify referral app
2. Creating a referral program
3. Setting up referral rewards and discounts
4. Adding customers as referral partners
5. Generating unique referral link
6. Monitoring referral performance
7. Optimizing your referral program
Yes, Shopify supports referrals through various referral apps like Afflr, which integrate with stores to create referral programs. With these apps, you can easily reward customers for new sales they bring.
Yes, Shopify has a referral program. Shopify allows commissions based on the based on location which vary from $25 to $250. Shopify will allow the reward amount once the referrals sign up by paying the full price.
The benefits of using a referral program on Shopify are increased customer acquisition, higher conversion rates, high ROI on marketing costs, an increase in sales and revenue, and enhanced customer relationships.
