{"id":12471,"date":"2023-05-29T10:37:50","date_gmt":"2023-05-29T10:37:50","guid":{"rendered":"https:\/\/www.invitereferrals.com\/blog\/?p=12471"},"modified":"2025-05-13T12:32:35","modified_gmt":"2025-05-13T12:32:35","slug":"setup-a-referral-program-for-shopify-store","status":"publish","type":"post","link":"https:\/\/www.invitereferrals.com\/blog\/setup-a-referral-program-for-shopify-store\/","title":{"rendered":"The Complete Guide To Setup A Referral Program For Shopify Store"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Say you\u2019ve already figured out <\/span><span style=\"font-weight: 400;\">what to sell on Shopify<\/span><span style=\"font-weight: 400;\">. You have your Shopify store up and running and have even gained some loyal customers. Congratulations! Because a loyal customer is worth <\/span><span style=\"font-weight: 400;\">10<\/span><span style=\"font-weight: 400;\">x the money they first spent on the first purchase. But did you know that these loyal customers can be your key to winning more customers? How? Through a Shopify referral program!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Running a referral program that rewards customers for referring others to your business may boost sales owing to the explosive nature of word-of-mouth marketing. Why? For the simple reason that <\/span><span style=\"font-weight: 400;\">90%<\/span><span style=\"font-weight: 400;\"> of buyers put faith in personal recommendations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Want to <strong>setup a referral program for shopify store<\/strong>? We&#8217;ll explain everything you need to know, including what it is, why it is used, and how you can plan for one.\u00a0<\/span><\/p>\n<h2><strong>What is a Referral Program?<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">A customer referral program is marketing with word of mouth. Businesses reward customers for spreading their enthusiasm about your business to their friends and acquaintances and bringing in new quality leads. Through this program, current customers may tell about their positive experiences with your business to their:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0friends,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">coworkers,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">and acquaintances.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">For example, if you sell <\/span><span style=\"font-weight: 400;\">Spotify merch<\/span><span style=\"font-weight: 400;\"> on Shopify, your customers can refer you to their music friends who love Spotify. Since new customers come to you with personal recommendations, they\u2019re more likely to convert to paying customers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You may save a lot of marketing money on acquiring new clients and converting them into loyal ones by saving on customer acquisition costs (CAC). Statistics show a <\/span><span style=\"font-weight: 400;\">fivefold<\/span><span style=\"font-weight: 400;\"> increase in sales when people spread the word about your business in contrast to when they see ads.\u00a0<\/span><\/p>\n<p>You may save a lot of marketing money on acquiring new clients and converting them into loyal ones by saving on customer acquisition costs (CAC). With the right setup, such as using a <a href=\"https:\/\/amzprep.com\/best-shopify-3pl-fulfillment-companies\/\" target=\"_blank\" rel=\"noopener\">Shopify 3PL store<\/a>, you can focus more on growing your customer base organically. Statistics show a fivefold increase in sales when people spread the word about your business in contrast to when they see ads.&#8221;<\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s more to it! Referral programs also boost customer retention and add lifetime value, increasing your loyal customers because who doesn\u2019t love getting incentives to spread the word to their social circles?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, when you start a referral program for your Shopify store, you not only get organic customer growth without much acquisition cost but also:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">retain your current customers,<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">and create a loyal customer base.\u00a0<\/span><\/li>\n<\/ul>\n<h2><strong>The Intentions of Your Referral Program<\/strong><\/h2>\n<p><a href=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071014\/the-intentions-of-your-referral-program.webp\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-12476\" src=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071014\/the-intentions-of-your-referral-program.webp\" alt=\"The Intentions of Your Referral Program\" width=\"500\" height=\"309\" srcset=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071014\/the-intentions-of-your-referral-program.webp 500w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071014\/the-intentions-of-your-referral-program-300x185.webp 300w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071014\/the-intentions-of-your-referral-program-370x229.webp 370w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071014\/the-intentions-of-your-referral-program-270x167.webp 270w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Now that you understand the referral program let\u2019s dig into why you\u2019d be interested in starting it. There are several intentions of eCommerce store owners behind starting a referral program. They all come from a plethora of benefits it offers. Some of the common intentions for starting a referral program can be:\u00a0<\/span><\/p>\n<h3>Reduce customer acquisition cost<\/h3>\n<p><span style=\"font-weight: 400;\">Using referral marketing, online businesses may save money while bringing in more valuable clients. Referral marketing saves costs compared to more conventional advertising methods since it leverages your existing clientele to spread the word and bring in new business.\u00a0<\/span><\/p>\n<h3>Drive sales and Revenue<\/h3>\n<p><span style=\"font-weight: 400;\">Companies that engage in referral marketing activities enjoy sustained revenue development because they attract qualified clients that are more inclined to make purchases. Let\u2019s look at a successful example:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To draw in more online shoppers, <\/span><a href=\"http:\/\/goodairx.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Good AirX<\/span><\/a><span style=\"font-weight: 400;\"> developed a unique <\/span><span style=\"font-weight: 400;\">referral program<\/span><span style=\"font-weight: 400;\">. Referrers receive a discount coupon for 10% off future purchases, while new customers receive a voucher for 7% off their first order.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">GoodAirX was able to lower its per-customer cost of acquisition with the help of its referral marketing initiative. It also grew orders by <\/span><span style=\"font-weight: 400;\">21%<\/span><span style=\"font-weight: 400;\"> and raised sales through referrals by over 73%!<\/span><\/p>\n<h3><b>Increase customer loyalty<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Customers acquired via a referral program tend to be more loyal than those you get through more conventional advertising. According to research from <\/span><span style=\"font-weight: 400;\">Wharton Business School<\/span><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There was less churn among incentive recipients compared to non-reward recipients.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The retention rate for referred customers was 18% greater than that of non-referred consumers, and this difference remained stable over time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Referrals brought customers with an 82% chance of still being active 33 months later.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In addition to this, by offering incentives to current clients for referring friends, family, and acquaintances, businesses even promote engagement and loyalty amongst them.\u00a0<\/span><\/p>\n<h3><b>Increased social media visibility and brand awareness<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In terms of reaching your target audience, referral marketing is unparalleled. The new social media reposting options in referral offers makes it easy for your client base to promote a refer-a-friend promotion to their wider networks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So even if your intention is to simply create brand awareness, get more followers, and increase exposure, a referral program is a good choice. Plus, the other benefits will follow and only add to your bottom line!\u00a0<\/span><\/p>\n<h2><strong>What is your motive?<\/strong><\/h2>\n<p><a href=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063228\/what-is-your-motive.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-12472\" src=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063228\/what-is-your-motive.webp\" alt=\"What is Your Motive?\" width=\"336\" height=\"480\" srcset=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063228\/what-is-your-motive.webp 336w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063228\/what-is-your-motive-210x300.webp 210w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063228\/what-is-your-motive-270x386.webp 270w\" sizes=\"(max-width: 336px) 100vw, 336px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Before we get into how to set up a referral program, you\u2019ll need to set goals and define your motive. Since you already know what intentions could go behind the referral program, you can use them to clarify your motivations for creating the referral program.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Are expansion and increased income your primary concerns? Or do you intend to include retention in this equation? Do you work in a field where establishing credibility is crucial? In that case, you may benefit from referrals from credible influencers in your field.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your motives will define how you go about designing the template, content, and CTA of your referral. If you take the time to carefully consider and articulate your objectives, the path forward should become clearer.<\/span><\/p>\n<h2><strong>How to setup a referral program for shopify store<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">As long as you\u2019ve got the <\/span><a href=\"https:\/\/printify.com\/blog\/things-to-sell-to-start-a-business\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">best things to sell to start a business<\/span><\/a><span style=\"font-weight: 400;\">, you\u2019re ready to <span style=\"text-decoration: underline;\">setup a referral program for shopify store<\/span> after knowing your motives behind it. Follow the steps below to create a plan for your referral program:\u00a0<\/span><\/p>\n<h3>Step 1: Understand Your Target Audience<\/h3>\n<p><a href=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071148\/understand-your-target-audience.webp\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-12477\" src=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071148\/understand-your-target-audience.webp\" alt=\"Understand Your Target Audience\" width=\"500\" height=\"401\" srcset=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071148\/understand-your-target-audience.webp 500w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071148\/understand-your-target-audience-300x241.webp 300w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071148\/understand-your-target-audience-370x297.webp 370w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071148\/understand-your-target-audience-270x217.webp 270w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">This will include gaining an understanding of who exactly is your ideal client. Get down into the customer psychology and understand their buying behaviors.<\/span><\/p>\n<h3>Step 2: Figure out Potential References Sources<\/h3>\n<p><span style=\"font-weight: 400;\">Once you\u2019ve figured out your target audience, understand who\u2019ll be your brand advocates&#8211; the people who will refer your business to their friends or family. These can be current and former customers, missed clients, experts in your field, reliable suppliers, etc.\u00a0<\/span><\/p>\n<h3>Step 3: Decide on Rewards and Incentives<\/h3>\n<p><span style=\"font-weight: 400;\">Decide what referrers will get for referring your business to friends and family. Define the criteria they must meet to receive these benefits. Don\u2019t forget to give a bonus to new customers too.\u00a0<\/span><\/p>\n<h3>Step 4: Plan how to reach out<\/h3>\n<p><span style=\"font-weight: 400;\">When reaching out to potential brand advocates, timing is very important. Time your requests for advocates to participate in your referral campaign strategically. Some businesses wait before they initiate this relationship, while many merchandise businesses initiate with the first sale.\u00a0<\/span><\/p>\n<h3>Step 5: Create Templates for Referrals<\/h3>\n<p><a href=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063940\/create-templates-for-referrals.webp\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-12473 size-full\" src=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063940\/create-templates-for-referrals.webp\" alt=\"Create Templates for Referrals\" width=\"362\" height=\"500\" srcset=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063940\/create-templates-for-referrals.webp 362w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063940\/create-templates-for-referrals-217x300.webp 217w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29063940\/create-templates-for-referrals-270x373.webp 270w\" sizes=\"(max-width: 362px) 100vw, 362px\" \/><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Lastly, create a <a href=\"https:\/\/picsart.com\/templates\/\" target=\"_blank\" rel=\"noopener\">template<\/a> that can be used by anybody in the company, be it employees or customers. Use your understanding of your target audience and create one that creates a strong appeal and can be modified with ease to reflect the brand&#8217;s tone, style, and character.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">How to Track and Analyze Referrals<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You must have tracking systems in place when you&#8217;re thinking of any marketing strategies. Take this as an opportunity to learn about customer relationship management systems (CRMs) if you haven&#8217;t previously. One of the most important aspects of customer success is account and relationship management since it allows you to treat each client distinctly.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can use referral marketing tools that may manage invites, create tracking codes or links, and monitor referral-based activity. These tracking systems help you remember every little detail, such as:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Who are the referrers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Who are they referring<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How many of them convert<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">How many don&#8217;t convert, and why<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ways to follow up and build a relationship, etc.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Think About Promoting Your Program<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The last thing to do before you launch your referral program is to promote it. To let clients learn about your Shopify store&#8217;s referral program, use promotional tools like:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">website banners,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">social media campaigns,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">email,\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">and others.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Creating a plan and marketing strategy designed to encourage client referrals must be developed by marketing departments.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">It is Time to Optimize and Launch<\/span><\/h3>\n<p><a href=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071008\/it-is-time-to-optimize-and-launch.webp\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-12475\" src=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071008\/it-is-time-to-optimize-and-launch.webp\" alt=\"It is Time to Optimize and Launch\" width=\"500\" height=\"500\" srcset=\"https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071008\/it-is-time-to-optimize-and-launch.webp 500w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071008\/it-is-time-to-optimize-and-launch-300x300.webp 300w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071008\/it-is-time-to-optimize-and-launch-150x150.webp 150w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071008\/it-is-time-to-optimize-and-launch-370x370.webp 370w, https:\/\/cdn3.invitereferrals.com\/blog\/wp-content\/uploads\/2023\/05\/29071008\/it-is-time-to-optimize-and-launch-270x270.webp 270w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Starting a referral scheme will be easy and smooth once you&#8217;ve planned it well. Several tools facilitate quick and simple program configurations. They take care of everything when an e-commerce business owner sets up their desired incentives.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One thing we\u2019d like to point out is that there is no one-size-fits-all approach to developing a successful Shopify referral program.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Based on how you analyze your clientele&#8217;s wants, needs, and demands, the optimal referral program for your company will be refined over time. It&#8217;s natural to take some trial and error before you find out what is effective and what is not. Regular testing can help you determine the strengths and weaknesses of your program.<\/span><\/p>\n<h4><strong>Conclusion<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">It&#8217;s expensive to find and <a href=\"https:\/\/www.invitereferrals.com\/blog\/how-to-attract-new-customers\/\">attract new customer<\/a>, which is why your business could benefit a lot from referral programs. With a referral program, your current customers will promote your business and bring in new ones as brand advocates.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Provide attractive incentives and rewards for both the referrer and the referred customers and see how you increase your revenue, improve customer loyalty and engagement, and shoot up <\/span><span style=\"font-weight: 400;\">ROI. We hope this guide will help you <em>setup a referral program for shopify store<\/em>.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Say you\u2019ve already figured out what to sell on Shopify. You have your Shopify store up and running and have even gained some loyal customers. Congratulations! Because a loyal customer is worth 10x the money they first spent on the first purchase. But did you know that these loyal customers can be your key to [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":12485,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[146],"tags":[],"class_list":["post-12471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-marketing"],"_links":{"self":[{"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/posts\/12471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/comments?post=12471"}],"version-history":[{"count":12,"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/posts\/12471\/revisions"}],"predecessor-version":[{"id":22853,"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/posts\/12471\/revisions\/22853"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/media\/12485"}],"wp:attachment":[{"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/media?parent=12471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/categories?post=12471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invitereferrals.com\/blog\/wp-json\/wp\/v2\/tags?post=12471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}