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Referral reward types

Set the rewards for your referral campaigns

James Dohm avatar
Written by James Dohm
Updated over a week ago

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 the Scale and Plus plans. See pricing →


Referral rewards available

Reward Type

Configuration Options

Available to

Amount Discount

• Discount value

• Minimum cart requirement

• Applies to (entire order, specific products/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, specific products/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 (per day, week, month, or lifetime)

• Custom reward description

• Auto-redeem options

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: Given to new customers who make their first purchase using a referral link

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 months (e.g., 3 months, 6 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 (daily, weekly, monthly, or lifetime limits)

⚠️ Note: Points-based rewards are only available for advocates, not friends. Friends will always receive discount-based rewards to encourage their first purchase.


Creating a reward for your campaign

  1. From the Referral Campaigns page, click Edit on the referral campaign or create a new campaign here

  2. In the General section, scroll down to Advocate Incentive and click Add

  3. Select your preferred reward type:

    • For Discount Rewards: Choose from Amount Discount, Percentage Off, Free Shipping, or Free Product

    • For Points Rewards: Select the Points option and configure the point amount and frequency limits

  4. Configure the reward settings:

    • Reward Value: Set the discount amount, percentage, or points

    • Minimum Requirements: Add minimum cart value or order quantity if needed

    • Purchase Type: Choose whether the reward applies to one-time purchases, subscriptions, or both

    • Expiration: Set an expiration period in months (optional)

    • Delivery Timing: Choose immediate delivery or wait for order fulfillment

  5. Repeat the process for Friend Incentive (note: friends can only receive discount-based rewards)

  6. 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.

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