7 Referral Program Ideas for Ecommerce Stores To Get More Sales

Referral programs are a cost-effective way to acquire new customers while strengthening relationships with existing ones. A well-designed referral program achieves three things:

1. Turns current customers into affiliates.
2. Engages creators and influencers as affiliates.
3. Keeps affiliates motivated with meaningful rewards.

Plus, referral programs let you control costs with set discounts and commission rates, making them more affordable than typical paid ads. In this blog, we’ll explore seven referral program ideas to help your ecommerce store grow.

To help streamline this, we’ll cover 7 practical referral program ideas to help you design campaigns that attract new customers and affiliates.

7 Referral program ideas for ecommerce stores

Here are seven referral marketing campaign ideas that can drive growth for your online store without burning a hole in your wallet:

Implement two-sided rewards

Two-sided referral rewards benefit both the Affiliate (referrer) and the Friend (referee), creating an incentive for participation on both ends. This approach works particularly well because the referring customer sees immediate value for themselves and their referrals.

Here’s how these programs work:

Two-sided rewards can be either:

• Symmetrical rewards offer the same benefit to both parties. For example, “Give 10%, Get 10%” guarantees both the Advocate and Friend enjoy equal discounts. This structure works best for products with a lower average order value (AOV).
• Asymmetrical rewards provide different benefits to the Advocate and Friend. For instance, “Give 20%, Get $20” might give the Friend a discount while rewarding the Advocate with store credit. This model is ideal for higher AOV products, where the Advocate receives a compelling incentive.

Divi’s referral program offers $20 cash per referral, while referees receive $20 off purchases over $45.

Create a tiered program

Tiered programs tap into customers’ desire to achieve higher levels, fostering loyalty and repeat referrals. As affiliates continue to make sales, their rewards will continue to increase.

Here’s how these programs work:

Instead of providing the same reward for every referral, you will introduce levels with increasing incentives. Here's an example of what it might look like:

• Entry level: Customers receive a basic reward for their first few referrals, such as a small discount or gift card (for example 5% discount on their next purchase).
• Mid-level: After a set number of referrals, customers unlock higher-value rewards, like free products or larger discounts (for example 10% discount).
• Top tier: The highest level offers premium rewards, such as exclusive products, store credit, or even cash incentives for a substantial number of referrals.

PurelyB, a superfood brand, offers a tiered referral system. In Tier 1 their affiliates will earn 10% commission for each sale, which increases to 15% in Tier 2 and 20% in Tier 3. 

Build urgency with limited-time deals

Creating urgency through limited-time deals can significantly boost your sales. Making an existing customer feel like they need to act quickly can drive immediate purchases. It's important to use this tactic in a way that doesn't feel too forceful but still encourages quick action.

Here’s how these programs work:

The limited-time offer program is designed to create a sense of urgency and drive quick action from your customers. Here’s how it works in simple steps:

• Create short windows, like a few hours or a full day, or extend it to several days for events like Cyber Monday or flash sales.
• Display real-time stock updates (e.g., “Only 10 items left!”) or a countdown timer showing how much time is left before the deal expires.
• Promote deals as “today only” or “flash sale for the next 24 hours” to give customers the feeling that they’re getting something special that’s not available for long.
• Send targeted emails with countdown timers and specific deals for the subscribers.

Align referrals with social causes

Aligning your referral program with a meaningful social cause can boost participation while allowing your customers to feel like they're making a difference. 

When customers know their referrals contribute to a greater good, they are more likely to spread the word, driving more engagement and loyalty. This strategy not only benefits your brand but also helps raise awareness for a cause that resonates with your audience.

Here’s how these programs work:

• Partner with a relevant charity or cause that aligns with your brand values and resonates with your customers.
• For every successful referral, donate a specific amount or percentage to the chosen cause.
• Share updates on how much has been donated and the difference being made, encouraging further participation.
• Use language like “Refer a friend and help us make a difference” in your marketing materials to reinforce the social cause.
• Offer referral incentives to both the referrer and the referee with special incentives, such as exclusive discounts or limited-edition products, to keep the momentum going.

Let’s say an eco-friendly skincare brand, launches a referral program that supports environmental conservation. For every new customer referred, the brand donates $5 to plant trees in deforested areas.

Plus, customers who refer 3 friends get a free skincare product, while top referrers are recognized on the brand's website as “Tree Champions” and receive a special thank-you gift.

They regularly update customers on how many trees have been planted, driving further interest in the program and building a community around the shared cause of sustainability. Customers feel proud to be a part of something larger, encouraging more referrals and increased brand loyalty.

Gamify your program with giveaways

Gamifying your giveaways turns them into a fun and engaging experience, motivating participants to take action. By introducing elements like spin-the-wheel contests or quizzes, you tap into the excitement of rewards and unpredictability. This not only boosts participation but also keeps people coming back, boosting brand loyalty.

Here’s how these programs work:

• Create a virtual spinning wheel that offers different rewards, such as discounts or free products. Participants can spin to see what they win.
• Design fun quizzes where users can earn rewards based on their answers, such as personalized product recommendations or exclusive discounts.
• Host raffles where participants can earn multiple entries by completing actions like sharing their posts, signing up for newsletters, or referring friends.
• Display the number of prizes left or how many people have entered the contest to create a sense of urgency and excitement.
• Use your website, social media platforms, and email marketing to highlight these gamified features.
• Create leaderboards and referral contests to make it competitive to drive more customer referrals. 
• Offer Holiday bonuses to make the experience more engaging and rewarding for your brand advocates. 

Activate your referral participants for better results

Referral programs can be the best way to grow your customer base, but simply offering a reward isn’t enough. To maximize the impact, you need to actively engage your referral participants.

By motivating them with exclusive rewards, clear communication, and personalized incentives, you can boost participation and encourage customers to spread the word more enthusiastically.

Here’s how these programs work:

• Offer attractive rewards for both the referrer and the referee, such as discounts, free products, or loyalty points.
• Provide users with simple, shareable, and unique referral links that can be sent via social media, email, or text.
• Allow referrers to easily track how many people they've referred and the rewards they've earned.
• Offer tiered rewards for referrers who bring in multiple new customers, encouraging them to keep participating.
• Regularly remind customers of the benefits through targeted emails, social media, or website banners to keep the referral program top-of-mind.

For example, the menstrual care brand, Myoovi, set up referral activation email flows using Social Snowball’s Klaviyo integration. The email copy clearly highlights the affiliates' referral codes and communicates the rewards. The brand also added social media widgets to sharing referral codes more convenient.

This creates excitement and motivates customers to share their links more frequently, driving new business and building stronger relationships with loyal customers.

You can create referral activation email flows easily with our Klaviyo integration. Once the integration is configured, you add pre-built flow templates and launch activation workflows in minutes. 

Plus, you can also set up reminder SMS directly from your Social Snowball dashboard SMS. Just connect your Klaviyo account in the Integration section and turn on the toggle button for  “Send SMS data for Klaviyo SMS”

Turn your customers into referrals

Happy customers often express their satisfaction through repeat purchases, positive reviews, or social media engagement—but many may not think of referring you unless prompted.

However, a well-timed and personalized invitation to participate in a referral program can convert your best customers into valuable brand ambassadors, helping you attract new clients while deepening relationships with your existing customers.

Here’s how these programs work:

• Customers sign up for the referral program, usually through an email, post-purchase page, or dedicated landing page.
• The program offers incentives to customers who refer others. This could be in the form of discounts, cash rewards, or other perks.
• Once the referred customer makes a purchase, the referrer is rewarded.
• New customers who purchase through a referral link or code are encouraged to join the program, creating a cycle of referrals. 

However, getting your customers to sign up as a referrer can be challenging. You will have to send them emails and follow up. Even after, only a percentage will actually sign up. With Social Snowball, you can put that on autopilot. With our “turn customers into affiliates” feature you can add your customers as affiliates immediately but just switching on the feature. 

For example, Outway—a brand known for its performance socks—successfully implemented a referral program with Social Snowball, a platform that streamlines affiliate marketing. Outway incentivized customers by offering CAD 15 for each successful referral, paid in cash. 

• The team integrated Social Snowball which created unique referral codes for customers as soon as they bought from the store.
• They reached out to their extensive email list, introduced the program on the post-purchase page, and built a user-friendly landing page.
• Within the first 24 hours, Outway surpassed their weekly signup goal, onboarding 5,000 affiliates by week’s end. The program generated 9% of its total revenue in weeks while maintaining a 5x ROI.

Intrigued? Read the full case study here!

Essential components of a referral program

A well-designed referral program doesn’t just bring in new customers; it strengthens relationships with your current ones. Here's how you can create a referral program that is seamless, engaging, and effective.

Customization

Tailor your referral program to suit your customers' motivations. Here are some tips to help you easily do this:

• Offer flexible rewards, like discounts for frequent purchases or referrals.
• For B2B relationships, consider joint promotions or mutual referrals.
• Identify customers who are influencers and provide tools for them to promote your brand effectively.

For example, if your customer base includes social media users, include templates for posts or stories.

Attractive incentives

Incentives are the backbone of a successful customer referral program so make them appealing yet sustainable. For example, you can:

• Provide store credit, gift cards, or discounts.
• Offer free merchandise like branded hats or T-shirts.
• Create a system where customers earn more rewards as they refer more people.

Bonus Tip: Make sure that the incentives are in alignment with your profitability goals and don't end up messing up your budget.

Easy shareability

Simplify the referral process for your customers. But wait, how can you do this? Here are some pointers:

• Create a dedicated referral page with clear instructions and links.
• Provide ready-to-use templates for social media or emails.
• Highlight positive referrals to inspire others.

For example, send referral links via text or email, making it easier for customers to share directly.

Post-purchase engagement

Just setting up a referral program isn’t enough – you need to stay connected with customers after their purchase to encourage repeat referrals. Some tips to do this are:

• Use follow-up emails to thank them and highlight referral opportunities.
• Send reminders about their referral benefits.

Periodic reviews

Evaluate the program regularly to measure its success and make adjustments. Some ways to do this are:

• Track which referrals convert into customers.
• Identify the most effective channels—Google reviews, LinkedIn, or other platforms.
• Survey customers to understand what works and gather suggestions for improvement.

Also, some key metrics that you can track are conversion rates, preferred incentives, and engagement levels across platforms.

Conclusion

Reviewing your referral program regularly is key to guaranteeing its effectiveness. By identifying what works—be it preferred tiered rewards, gamification, or customer engagement strategies—you can refine your approach and drive consistent growth. However, managing these moving parts manually can quickly become overwhelming.

This is where Social Snowball comes in. With our referral program software, you can simplify and scale your referral program without manual intervention. With us, you can:

• Automate onboarding by instantly generating affiliate accounts and referral links for new customers.
• Streamline payouts with options for cash, store credits, or gift cards in just two clicks.
• Secure profits using unique links generated by Safelinks to prevent coupon abuse and attribution errors.
• Customize rewards and messaging to match the motivations of different affiliate groups.

So, why wait? Schedule a demo today to launch a successful referral program, improve customer loyalty as well as customer experience, and drive sales without cutting your margins too thin! 

Frequently asked questions

1. What is a referral program, and why is it effective for eCommerce?

A referral program incentivizes your existing customers to recommend your products to their friends and family. It’s effective because shoppers trust recommendations from people they know more than traditional advertisements. This drives sales and also strengthens customer loyalty for ecommerce businesses.

2. What is the role of referral software in managing my program?

Referral software like Social Snowball simplifies the process by automating referral link creation, tracking referrals, managing payouts, and preventing coupon abuse. This makes it easier to scale your program, reduce errors, and maximize its impact without requiring extensive manual effort.