Mrudul
Loyalty and referral programs play a huge role in ecommerce growth, helping brands retain existing customers while attracting new ones. Nearly 48% of customers join loyalty programs to show their brand commitment, while 52% recommend brands to family and friends—making referrals a powerful tool for organic growth.
With almost five million online stores, Shopify is one of the top ecommerce platforms, offering a wide range of apps, including Shopify referral program integrations. These programs provide businesses with a seamless way to encourage word-of-mouth marketing while rewarding loyal customers.
The impact of a Shopify referral program is significant—27% of D2C shoppers consider loyalty programs (often paired with referral features) a key reason to shop directly from brands. Take Galen Leather Co. as an example—after launching a referral program, the brand saw $350,000+ in sales and gained 2,000+ new customers through referral codes.
In this guide, we’ll break down everything you need to know about Shopify referral programs, from how they work to the best strategies for setting one up successfully.
Table of Contents:
Shopify referral programs helps you reward customers for bringing in new business, usually through discounts, store credit, or free products. This encourages existing customers to spread the word about your brand while giving their friends and family an incentive to make a purchase.
When a customer joins your referral program, they receive a unique referral link. When they share it, their referred friends will see a discount code or other reward at checkout, depending on how you set up your program. This simple process boosts word-of-mouth marketing and encourages repeat purchases.
Since Shopify doesn’t offer a built-in referral program, you’ll need to integrate a third-party provider like 99minds. These apps seamlessly connect with your store, making it easy to launch and manage a referral program that drives growth and customer retention.
When setting up Shopify referral programs, you’ll typically choose between two main types: one-sided and two-sided programs. Each has its benefits depending on your business goals.
A widget-based referral program appears as a floating widget on your Shopify store, allowing customers to interact with the referral program from anywhere on the site.
Despite these potential drawbacks, widget-based referral programs can be highly effective. For instance, Galen Leather uses this approach and consistently attracts over 300 new referral sign-ups per month, generating impressive sales growth.
Brands like REN Clean Skincare have successfully embedded their referral programs within their loyalty pages. Their loyalty members contribute 38% of total revenue, and the program has driven a 68% increase in customer spending—proving that this approach can be incredibly effective.
Paid ads and SEO can help drive traffic, but research from Sprout Social reveals that a friend’s recommendation is the most influential factor in getting U.S. customers to purchase from social channels. Additionally, Gartner found that word-of-mouth recommendations drive 31% of purchases in the electronics sector.
Since referrals come from trusted sources, they are often a more cost-effective way to acquire new customers compared to traditional advertising.
A landmark study from Schmitt, Skiera, and Van den Bulte in the Journal of Marketing found that referred customers tend to have a higher contribution margin and long-term value compared to non-referred ones.
Additionally, 69% of consumers consider loyalty programs a top factor in brand loyalty, according to Forbes Advisor. Since many loyalty programs include built-in referral incentives, businesses that combine the two strategies can increase retention while attracting new customers.
Research from the American Marketing Association expands on these findings, showing that referred customers have a 16–25% higher customer lifetime value (CLV) than non-referred customers.
At 99minds data consistently shows that businesses implementing referral programs see higher average order values (AOV). A notable example is Shopcalico, which successfully tripled its AOV after launching a referral-integrated loyalty program.
A Shopify referral program can help drive new customer acquisitions, boost retention, and increase sales with minimal marketing costs. Since Shopify doesn’t offer a built-in referral system, you need a third-party solution like 99minds, which seamlessly integrates with Shopify to manage referral rewards and automate the process.
Here’s a step-by-step guide to setting up a referral program on Shopify using 99minds.
Start by installing the 99minds app from the Shopify App Store. Once installed, connect it to your Shopify store to sync products, customer data, and checkout settings.
99minds allows full customization of your referral program. Choose the structure that best fits your business goals:
The 99minds dashboard makes it easy to set up and adjust these rules as needed.
The success of a referral program depends on the incentives offered. With 99minds, you can offer:
Start by installing the 99minds app from the Shopify App Store. Once installed, connect it to your Shopify store to sync products, customer data, and checkout settings.
These incentives encourage participation and make the referral program more appealing.
99minds provides different ways to display and promote your referral program, making it easily accessible for customers.
By making the referral process seamless and visible, customers are more likely to participate.
Once your Shopify referral program is set up, it’s essential to let customers know about it. Some effective ways to promote it include:
The more visibility the program gets, the more engagement and referrals it will generate.
99minds provides real-time analytics, allowing you to monitor and improve your referral program. Some key metrics to track include:
Start by installing the 99minds app from the Shopify App Store. Once installed, connect it to your Shopify store to sync products, customer data, and checkout settings.
Implementing a Shopify referral program is one of the best ways to drive organic growth, increase customer loyalty, and boost revenue. By using 99minds, you can create a seamless, automated referral system that rewards customers for spreading the word about your brand. With the right incentives and smart promotion, your referral program can become a powerful tool for long-term success.