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Referrals Quickstart

When combining memberr Store Credit with Referrals, users experience a direct & tangible benefit by recommending friends and acquaintances.

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Using Shopify Store Credit to Power a Referral System

Implementing a referral system is an effective strategy to attract new customers while rewarding existing ones. Shopify Store Credit offer a seamless and motivating way to drive such a system.

1. The Basics

A referral system incentivizes existing customers to bring in new customers by offering rewards. When a referred friend makes a purchase, both the referrer and the new customer receive Store Credit. This creates a win-win situation, encouraging word-of-mouth marketing and expanding the customer base.

2. Setting Up the Referral Program

To start, merchants need to set clear rules and rewards for their referral program. Typically, this involves:

  • Reward for Referrers: Offering Store Credit to existing customers when their referred friends make a purchase.
  • Reward for New Customers: Providing an introductory Store Credit to new customers on their first purchase, encouraging them to complete the transaction.

3. Issuing Store Credit for Referrals

Shopify's admin panel or integrated apps can automate the issuance of Store Credit. When a referred customer makes their first purchase, the system automatically credits the referrer's account with the specified amount. Similarly, the new customer receives their Store Credit as part of their welcome package.

4. Promoting the Referral Program

To ensure the success of the referral program, merchants should actively promote it across various channels:

  • Email Campaigns: Send personalized emails to existing customers, explaining the referral program and its benefits.
  • Social Media: Utilize social media platforms to spread the word, encouraging customers to share referral links with their followers.
  • Website Banners: Display banners on the Shopify store, highlighting the referral program and the rewards for participation.

5. Tracking and Managing Referrals

Effective tracking is crucial for the success of the referral program. Shopify offers various apps that can help monitor referrals, issue Store Credit automatically, and provide analytics on the program's performance. This allows merchants to adjust strategies and optimize the program for better results.

6. Benefits of Using Store Credit for Referrals

  • Cost-Effective: Store credits are a cost-effective way to reward customers compared to cash rewards, as they ensure that the credits are spent within the store.
  • Customer Retention: By rewarding customers with Store Credit, merchants encourage repeat purchases and build long-term loyalty.
  • Organic Growth: Satisfied customers become brand advocates, promoting the store to their friends and family, thus driving organic growth.