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Ecommerce

Building high-converting referral programs for ecommerce businesses with RefRef

This guide provides strategies for implementing successful referral and affiliate programs for ecommerce businesses using RefRef.

Why Referrals Work for Ecommerce

Ecommerce businesses benefit from referral programs in several key ways:

  • Lower customer acquisition costs compared to paid advertising
  • Higher average order values from referred customers
  • Increased trust and conversion rates through social proof
  • Enhanced customer loyalty and repeat purchase behavior
  • Expanded reach into new customer segments

Designing Your Ecommerce Referral Program

Key Design Considerations

  • Incentive Type - Discounts, store credit, free products, or cash rewards
  • Incentive Value - Finding the right balance between appeal and profitability
  • Reward Structure - One-sided vs. two-sided rewards
  • Timing - When to reward referrers (after purchase, after return period, etc.)
  • Promotion Strategy - Where and how to promote your referral program
  1. The "Give $X, Get $X" Model

    • Both referrer and new customer receive a discount or store credit
    • Creates mutual benefit and clear value proposition
    • Easy to communicate and understand
  2. The Percentage Discount Model

    • Offers percentage discounts instead of fixed amounts
    • Works well for stores with varied price points
    • Can scale with purchase value
  3. The Tiered Rewards Model

    • Increasing rewards for more successful referrals
    • Gamifies the referral process
    • Incentivizes ongoing participation

Implementation in RefRef

  1. Create a new project using the Ecommerce template
  2. Configure your reward structure and tracking parameters
  3. Set up custom referral pages and emails
  4. Integrate with your ecommerce platform (Shopify, WooCommerce, etc.)
  5. Implement post-purchase referral touchpoints

Optimizing Your Program

Key Touchpoints for Referral Prompts

  • Order confirmation pages and emails
  • Shipping confirmation and delivery notifications
  • Product review requests
  • Account dashboards and order history pages
  • Customer service interactions
  • Social media and loyalty program communications

Testing and Iteration

  • A/B test different incentive structures
  • Experiment with referral messaging and positioning
  • Try various placements within your customer journey
  • Test different sharing mechanisms (email, social, direct link)
  • Iterate based on conversion data

Advanced Strategies

  • Seasonal Campaigns - Enhanced referral incentives during key shopping periods
  • Product-specific Referrals - Targeted programs for high-margin or new products
  • Influencer Integration - Combining referral tracking with influencer marketing
  • Loyalty Program Integration - Awarding loyalty points for successful referrals
  • Post-purchase Upsells - Using referral offers to increase repeat purchases

Measuring Success

Track these metrics in your RefRef dashboard:

  • Participation rate (% of customers who refer)
  • Share rate (average referrals per participant)
  • Conversion rate (% of referrals who purchase)
  • Average order value of referred customers
  • Customer lifetime value comparison
  • Return on investment for referral incentives

Case Study: FashionFinder

Learn how FashionFinder, an online clothing retailer, achieved a 42% increase in new customer acquisition and a 28% higher average order value through their "Give $20, Get $20" referral program implemented with RefRef.