5 Tips to Build a Strong Referral Program

Online shoppers are 4 times more likely to buy a product when referred by a friend. Talk about strong social proof!

Referrals incentivize your existing customers to bring new buyers to your brand and increase customer retention. Unlike most tools, Loox Referrals are effective because they’re easy for you to set up, and take no more than a single click for your customers to participate. 

We spoke to some of the most successful brands that rely on Loox Referrals to help them grow. Below are their 5 top tips for success:

1. Reward new and existing customers

Give your customers a reason to refer your brand to their family and friends by setting up a two-sided discount that will incentivize both parties (the referrer and the referred customer). This creates a win-win situation that encourages participation.

To set up a two-sided referral discount: 

• Go to the Referrals “Offer” settings page and select “Two-sided incentive”.

• Set the discount amount, advocate reward, and minimum purchase amount. 

2. Encourage referrals at every touchpoint

Opportunities for referrals exist at various stages of the customer journey. The more touch points, the more chances of success, so it’s important to make your referral program prominent and accessible. 

Loox enables you to display your program on your homepage, post-purchase, post-reviews, and even on a dedicated referrals page. 

Go to the Referral Widgets Menu to activate and customize any (or all) of these referral widgets. 

3. Make it yours

Brand consistency is key to being recognizable, establishing trust, and communicating personality. Loox Referrals enables you to customize every element of your referrals - from branding to messaging. 

• Customize your branding and elements of your email appearance from the Branding Settings section in your Loox Admin.
• Customize the content and messaging in your referral offer from the Referral Widgets Menu.

4. Spread the word

Maximize your chances of success by promoting your referral program outside of your online store. Easily set up a dedicated referral page on your site in the Shopify theme editor. For instructions, check out this article. 

Then, link to it from your social, email newsletters, and other customer marketing channels. 

5. Monitor your program

Keep track of your referral program’s performance and analyze the results regularly. This will help you identify areas for improvement and make any necessary adjustments. Loox displays all your referral performance data in your Dashboard.