Introduction
In this article, we will take a deep dive into the types of rewards you can offer in your referral campaigns and how to configure them to maximize engagement and generate successful referrals. You can choose from discount-based rewards or points-based rewards, each with their own configuration options and benefits.
✨ Referral campaigns are available on select paid plans. See pricing →
Referral rewards available
Reward Type
Configuration Options
Available to
Amount Discount
• Discount value
• Minimum cart requirement
• Applies to (entire order or collections)
• Purchase type (one-time, subscription, both)
• Reward expiration
• Delivery timing (immediate or order fulfillment)
Advocates, Friends
Percentage Off
• Discount percentage
• Minimum cart requirement
• Applies to (entire order or collections)
• Purchase type (one-time, subscription, both)
• Reward expiration
• Delivery timing (immediate or order fulfillment)
Advocates, Friends
Free Shipping
• Maximum shipping amount
• Minimum cart requirement
• Purchase type (one-time, subscription, both)
• Reward expiration
• Delivery timing (immediate or order fulfillment)
Advocates, Friends
Free Product
• Product selection
• Minimum order quantity
• Purchase type (one-time, subscription, both)
• Reward expiration
• Delivery timing (immediate or order fulfillment)
Advocates, Friends
Points Reward
• Points amount
• Frequency limits
• Custom reward description
Advocates only
📝 Important Note: Make sure that your referral campaign status is toggled ON and that your Referrals program is enabled too (Programs > Referrals).
Understanding Advocate vs Friend Rewards
Referral campaigns allow you to set up different rewards for two types of participants:
Advocate Rewards : Given to existing customers who successfully refer new customers to your store
Friend Rewards : Issued when a new customer claims a referral offer. The referral is completed after that friend places an eligible order
You can configure these rewards independently, allowing for different reward types, values, and restrictions for each group.
💡 Pro Tip: Consider offering higher-value rewards to advocates since they're driving new customer acquisition, while friend rewards can focus on encouraging that crucial first purchase.
Advanced Reward Configuration
Minimum Order Requirements
You can set minimum requirements that customers must meet to be eligible for referral rewards:
Minimum Cart Value : Set a minimum order amount (e.g., $50) that must be reached before the reward can be used
Minimum Order Quantity : Require a minimum number of items in the cart (available for Free Product rewards)
First Order Only : By default, referral rewards are only available for a customer’s first purchase to prevent abuse
Purchase Type Eligibility
Control which types of purchases are eligible for referral rewards:
One-time purchases : Standard single purchases (default setting)
Subscription purchases : Recurring subscription orders
Both : Allow rewards to be used on any purchase type
Reward Delivery Timing
Choose when advocates receive their rewards:
Immediate : Reward is sent as soon as the referred friend places their order
Order Fulfillment : Reward is sent only after the referred friend’s order is fulfilled, reducing fraud risk
Reward Expiration
Set expiration periods for discount-based rewards to create urgency:
Configure expiration in the unit available in your settings, such as hours, days, or months
Leave blank for rewards that never expire
Expired rewards cannot be redeemed and will show as expired in customer accounts
Points vs Discount Rewards
Discount-Based Rewards
Traditional discount codes that customers can apply at checkout:
Benefits : Immediate value, familiar to customers, works with existing checkout flow
Best for : Encouraging immediate purchases, one-time incentives
Limitations : Can be shared or misused, may reduce perceived brand value
Points-Based Rewards
Award loyalty points instead of discount codes:
Benefits : Builds long-term engagement, integrates with your loyalty program, harder to abuse
Best for : Advocates who are already engaged with your loyalty program
Configuration : Set point amounts, frequency limits, and custom descriptions
Frequency Limits : Prevent abuse by limiting how often advocates can earn points
⚠️ Note: Points-based rewards are only available for advocates, not friends. Friends will always receive discount-based rewards to encourage their first purchase.
Tiered advocate reward sequences
If you want advocates to earn different rewards as they complete more referrals, use Shopify Flow instead of relying only on the standard points reward in the referral campaign.
For example, you could create a sequence like:
First completed referral: award points
Second completed referral: award more points
Third completed referral: trigger a product gift workflow
To build this, use the Referral Completed trigger in Shopify Flow. The trigger includes the advocate’s total Referrals Completed count, which lets you branch your workflow by milestone. In each branch, choose the action you want to run, such as adding points, adding store credit, using a custom action, tagging the customer, or starting a separate product-gift workflow.
This is the best setup when each milestone needs a different outcome. The standard campaign points reward is designed to award the same advocate points reward when a referral is completed, while Shopify Flow gives you the branching logic needed for tiered sequences.
💡 Tip: Keep your Flow conditions mutually exclusive, such as "Referrals Completed equals 1", "equals 2", and "equals 3", so a single completed referral only matches the intended milestone.
For full setup steps, see Integrating with Shopify Flow.
Creating a reward for your campaign
From the Referral Campaigns page, click Edit on the referral campaign or create a new campaign here
In the General section, scroll down to Advocate Incentive and click Add
Select your preferred reward type:
Configure the reward settings:
Repeat the process for Friend Incentive (note: friends can only receive discount-based rewards)
Save your changes and ensure your campaign status is set to Active
Best Practices & Tips
Reward Strategy
Balance Value : Offer meaningful rewards without hurting your margins. Consider your average order value when setting reward amounts
Test Different Types : Try both discount and points-based rewards to see what resonates with your audience
Seasonal Adjustments : Increase reward values during slow periods or special promotions
Fraud Prevention
Use Minimum Order Values : Prevent low-value abuse by setting appropriate minimum cart requirements
Order Fulfillment Timing : Consider delaying advocate rewards until orders are fulfilled to reduce fraudulent referrals
Frequency Limits : For points-based rewards, set reasonable frequency limits to prevent gaming
Customer Experience
Clear Communication : Make sure customers understand when and how they’ll receive their rewards
Reasonable Expiration : If using expiration dates, give customers enough time to use their rewards (3-6 months recommended)
Mobile Optimization : Ensure your referral experience works well on mobile devices where many referrals happen
🎯 Success Tip: Monitor your referral campaign performance regularly and adjust reward values based on conversion rates and customer feedback. The most successful campaigns often start with higher rewards to build momentum, then optimize over time.