Best tips to get success in eCommerce Referral Program

Various tools are coming out in eCommerce businesses in various forms, right from PPC ads to email, and retargeting to social media. But, it's hard to find beating any of the referral programs. Well, it is a proven the fact that a happy customer is always a better ambassador for any brand.

In this modern digitalized world, customers are always pitched up through ads and product placements, in a nutshell, which means it is vital for the people to dig out the valuable product information out of the box and invest their money in those products and services that satisfies them the most. But for that, if you were seeking to go for online storefront, you have to go for Magento website development.

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Referral Power:-

Those companies who offer referral marketing as a part of their strategies opens the door of opportunities for the business growth. The best part about referral is that it is way less expensive than traditional marketing, along with the fantastic branch reach. Buyers who are satisfied with the company will refer to the concerning pals who are interested in it, making the brand more popular on both offline and online platforms. So, this eases the work of business owners to find the potential prospects and leads by own. A proper managed referral program act as magic in the online segment.

These types of programs undoubtedly attract unique visitors on an eCommerce website. But when it comes to digital business, it is all about the conversions along with traffic. And this is the reason why referral marketing shows tremendous results.
  • Referrals create an impact on 50% based on purchasing decision and proportionately four times more chances of buying when a friend refers the same.
  • Leads which are generated by the referral programs have a probability of 30% or better conversion than others.
  • Customers are more loyal who comes from referral program and help in growing up the business with 25% or more profit margins.
  • In the specific domain referred customers lifetime value is 16% higher in comparison to non-referred ones.
  • Almost every companies are aware with the power of referral marketing. 885 of the sales reps, 82% of the sales leaders, and 70% of the marketers appreciates the strategy of referrals as best due to its power of generating the potential leads.
The work of online store owners is initiate the best referral program and draw up the existing customers in. In this article, we had listed out the best practices to work on for running a referral program at online storefront.

Let's discover,

Easy enrollment:-

Looking towards the reality we see that time is a resource which is lacking in our lives these days. There is no sense of being engaged by the people to take part in the referral program if it has long process to sign in. Thus, overall process of the enrollment for the referral program should be easy and get completes in few steps. The sign in form should be develop with minimum required field along with the enabling the option of emails and social media, so that it can ease the task of invites to join with couple of clicks.

Make simple rules and terms:-

It is very much significant to look after the rules of referral program. Rules should be easy, clear and understandable to all the participants, along with the marketing campaign. It will be even better to make them access the website and not to overload the visitors with pages like terms and conditions. To employ best UI/UX practices along with attractive landing page which has complete information of your referral program providing all the mandatory information. Use beautiful illustrations and graphics to explain the descriptions and a video which can tell full story of your referral program. Video content helps in driving more of the traffic on your website, which further enlarge the scope of your referral marketing campaign.

To give rewards to participants:-

To bring out and attract the interest of the participants into the program, it is very crucial to offer good rewards to them. No matter your products are good, customers will recommend your product to their near and dear ones only when they will get handsome reward for the same. It can either be discount, gift cards, coupons or the freebies. Moreover, the cash based referral program is also the best option to go on. Offering the non-material stuffs to the participants can also encourage them for the same. Even you can offer some of the extra services like fast delivery or early access to new releases of the products. To upgrade the account on higher level is also a great option depending upon the applicability on your store. It is very crucial to know that referrers and referrals will take the same advantage of your referral program.

Spread the word:-

Well, those who advocates the brand will surely notice the new referral program at the time of browsing the new website for the purchase. To take as many as participants as possible in your referral program, try to make use of the channels that you possess. Create Call-to-action and place it in emails, landing pages and blogs. Moreover, one of the better way to prompt the customers is to mention the referral program on checkout page too. Even leveraging the social media and notifying the followers about the program launch will bring higher awareness among them.

Once you are done with sharing the news of referral program, it is very important to send reminders time to time. Even if your company is popular among the customers, they forget to refer it to their friends if you stop reminding them. As per the research of an independent agency, 88% of the happy customers will do referrals, however 30% refers in actual. But try not to bombard the customers with referral program, else people will starting hating your program. Moreover, it is very important to share useful and relevant information with them, along with highlighting the advantage about the program which participants are willing to get.

Continue to experiment, after the program launch:-

Once you are done with launching the referral marketing campaign, keep tracking it and check whether it is performing or not. Although, you have made the great program which is beneficial for the customers, but don’t let the chip fall. Remember, your competitors may always in seek to compel and offer better rewards to steal your buyers.

Track the opted strategy once in 6months that can help you out to check the pros and cons of the referral program and area of improvements. If the results are not as per the desired goal, you can opt the new strategy for the referral rewards, along with optimization of the land page, and setting the new CTA. The crucial thing that you must know, is to keep the experience of the customers seamless, without doing changes on regular basis.


No doubt, referral marketing is ultimate business driver, giving business opportunities to grow up the relationships with the existing clients and can get the new one. By starting a referral program in place, you can think to invest based on higher customer loyalty and engagement. Applying the above strategy, sales will definitely grow as per the market domain.

We hope for the best for planning out and running a successful referral strategy campaign.

By the way, at Panacea Infotech we have magento certified developers who have an experience of more than 12000 hrs. Will develop the best in class eCommerce website for your online storefront which will enable you to start an effective referral program.