7 Simple Referral Marketing Strategies for Your Business

Let’s imagine that your friend showed you a new advanced stylish watch they recently bought from an online store, and it had all the exciting features. He loved it so much, boasted about it enough, and recommended you the product to give it a try. If you liked it, wouldn’t you collect the store and product details from your friend? That’s how ‘word-of-mouth’ marketing has been working since the beginning. 

People have been doing it for years! A referral program offers a lot of advantages. It’s one of the finest marketing strategies to increase sales for your eCommerce store. Most of all, people trust their friends’ words more than anything. So, there are more chances for WoM marketing to work well if you have effective referral marketing strategies.  

Most eCommerce stores implement this referral marketing as it is simple and easy. Use the points and rewards method to reward your customers for making a successful referral. Give your customers a free hand to share coupon codes with their friends or families, and reward both referrer and referee if the referee signs up and makes the first purchase. 

What is a referral program? 

Referral marketing is where you reward your existing customers for referring your brand or product to their friends and family. When you see a positive review about some product, you decide to purchase it, but when your friends or close ones suggest it, you will try it. This is how powerful it is. 

Referral marketing allows you to engage and reward your customers. Also, you can create brand loyalty and grow your customer base. To do so, all you have to do is attract them with rewards. You can coupons/ discounts, create coupons, free products, or ship according to your preference. Also, you can repeat the same process with your new customers by asking them to make a referral. 

You value your customers’ effort and time. Appreciate their efforts in making referrals. Send them frequent emails and shower your love upon them in the form of rewards. They are the free ambassadors of your store. 

Benefits of referral marketing

Word-of-mouth marketing offers more benefits than any other marketing program. Let’s look into some of the benefits of a referral marketing strategy. 

Customer Recognition

The first and foremost of every referral marketing is trust. Customers who enjoy your products and services and take the time to tell their friends and family must be rewarded. It strengthens customer loyalty towards your brand and not only that, but it also encourages them to make many new purchases. 

Moreover, making customers feel recognized and seen will encourage them to spread the word about your brand, and you could quickly acquire new customers. Also, show them they get something in return through rewards while making a referral. 


Referral marketing programs are perfect for startups and other businesses since they are cost-effective and give excellent results. It’s risk-free for stores with huge marketing expenditures. On the other hand, implementing a referral marketing strategy is cost-effective in brand building and customer loyalty. Additionally, it helps you attract more customers. 

Referred customers are more valuable. 

Customers are more dedicated to a brand when they believe in it. They are considerably more likely to tell their connections about their experience after that relationship has been made. Make your customers feel you always care for the time and effort they put into your brand.

Once you have given them the feeling that they are a part of your brand, they naturally tend to spread the word about your brand. Another exciting part is, compared to the usual customers, customers you gained through word-of-mouth referrals have a higher lifetime value. Gen Z statistics say 82% of this generation trust their friends and family most regarding suggestions on products or brands.

An excellent source of leads

Getting high-quality leads is another crucial benefit of a referral marketing strategy. Getting hundreds of new customers to your store is easy, but making them complete their purchase is all it needs. Though, if you attract 20-30 high-quality leads who join the program and make a purchase, it is a win. 

Referral programs give you high-quality leads, precisely what every eCommerce store needs. These high-quality leads are with your brand only because their friends have suggested your brand. 

Seven referral marketing strategies for your business

Want to know more about referral marketing strategies? Here are some strategies that will work for your store.

Running a referral program can be easy if you have chosen the right referral marketing plugin. Once you have selected an automated referral plugin, you can track all the referrals and all the referral details. On the other hand, you can provide rewards to both the referral and the referee. 

Offer the best offers to encourage your audience once you have selected the right plugin for your store. . Ensure to provide exciting offers and discounts to encourage more customers. 

Attractive headlines

Once the right plugin is chosen, the next referral marketing strategy is to give an attractive headline for the referral program that will instantly capture the reader’s eyes. The headlines are the first thing people notice, so make it eye-catchy and easy for the viewers to understand.

Headlines have the power to touch the audience emotionally and encourage them to make more purchases. Don’t stuff your headline with words; instead, be straightforward. Tell customers what they get through this referral program in simple terms. 

Reach Your Customers

Another important aspect of the referral marketing strategy is waiting for the right time. Don’t force the customers and don’t ask them too soon as they might find it disturbing. Sales conversion can happen only when you implement the right marketing strategy.

The right time to approach your customer is when they are most engaged and happy with your brand. Target those who have made more purchases and those who are your loyal customers. Also, sending emails at the right time has the highest conversion rate, and referrals will also increase. 

Email referral marketing 

One of the effective referral marketing strategies is email marketing. Despite social media marketing, referral email marketing is valuable and relevant. People receive many emails daily, so it can be a way to communicate with customers. Email marketing primarily results in high open rates and more sales. 

Though email marketing is beneficial, it needs to be automated and incentivized. People open the mail only to be surprised with rewards. So, you have to give the customers exciting rewards through email and make them open their emails.

Reward customers

Giving rewards for referrals is a fresh idea every eCommerce store follows. You can offer rewards for the referral and the referee, and the rewards can be the same or different. Usually, instead of giving the same reward to the referral and the referee, offering them differently, yet suitable rewards will make a difference in the conversion.  

For instance, instead of giving 10% off for every referral, you can give 20% to the referee and 5% to your old customer. This will encourage the new customer to make his first purchase and motivate them to participate in the referral program.

Free Gifts/shipping

Make your customers curious while they guess the incentives you offer. The only way to make the referral program work well is to fill them with exciting gifts. Also, gifts and free shipping will motivate and encourage customers to participate in the referral program and help you acquire new customers. 

Instead of being ordinary in gifting, understand what your customers like and give the gifts accordingly. Look at the purchasing history to understand their shopping behavior and choose the gifts befittingly. Happy customers come back for more, and it’s one of the ways to increase customer retention rates as well. 

Run a referral contest

Running a referral contest is a fantastic way to expand the email list, promote the brand, and boost sales. Even if a contest is entirely irrelevant, people have a natural tendency to participate and win it. Store owners can cleverly utilize this natural tendency to convert those participants into customers or referrals.

Examples of referral programs

Here are a few examples of referral programs to make you even more convinced of how referral marketing strategies work for your store. 


Zooshoo offers the best stylish footwear and a simple eCommerce referral program. ZooShoo rewards the Referrer and the Referral $10 each. The customer will be given a link, and his acquaintance must use it to purchase to receive the discounts. Also, the referral must spend $40 to use the reward. 


Watchshop’s referral program is excellent, just like their watches. They offer 30% off your friend’s first purchase and a chance to win a $250 watch as well. On the other hand, you will receive a $10 Tesco digital gift card on your next order when you refer a friend, and they complete their first purchase at their store. 

Blenders eyewear

Blenders eyewear offers affordable sunglasses to its customers. They follow a strategy where the customer is rewarded only if the referral makes a purchase. If the referral spends $50 on their purchase, both customers will receive 20% off on their next purchase. 


Uniqlo offers an eCommerce referral program where your friend gets a $10 discount when they make their first purchase, and you get a $25 discount on your next purchase. Remember that Uniqlo offers high-end winter clothes, so discounts of $10 are great. 


Hentley is where you can get all the leather products like wallets and bags for all ages. Henley’s referral program is found to be interesting. You will be paid for the number of referrals you bring in. When you bring in five referrals, you’ll receive a 17% discount; when you bring in 11 referrals, you’ll receive a free product. Also, a 10% discount whenever your referral makes their first purchase. 

Cole Haan

Cole Haan provides sneakers and other accessories for both women and men. They run an easy referral program. Both the referral and referee will get a $25 discount when the referral completes his first purchase. 

Brilliant Earth

Brilliant earth offers a fantastic referral program like the jewels in their store. They provide an enormous $100 discount to the referee, and the referral will get a surprise gift on their first purchase. But the exciting thing to note is the referral must have spent $1000. Only then will you be able to receive the rewards. 


Lulus stores are customized especially for women. If the referral orders are above $50, then the referral and the referee will get $25 off on the next purchase. Their main motive is encouraging customers to complete purchases and earn more orders.


FarFetch is where you can step in to get all the fashion products. It’s simple because you get 10% off when your friend completes his first purchase, and also, he gets 10% off on his next purchase. People participate in this referral program, though it’s just 10% off because the brand they have at their store is hot!


Decathlon is the perfect store for all your fitness equipment. You can share a referral link among your friend’s group. The referral you refer must purchase for a minimum of $50 to use the 10% off he receives. As soon as he makes his first purchase, you will also get a 10% off. 


A Referral marketing strategy will definitely help you to gain more sales and generate more revenue than you expect. Apart from the examples mentioned in the blog, there are many more referral programs you have to look into. Looking into various referral program examples will make you understand how the referral marketing program works clearly. Though many strategies are available, these referral strategies are very much cost-effective. 

Hope this blog has given you a clear idea of a referral program and how it will boost your revenue. So, what are you waiting for? Start a referral program right away and increase sales and growth rapidly. 

Author Profile

Ali Armian
Video Producer

Ali has interviewed many stars on the red carpet and does alot of video production too for all the big media brands. Output also includes MarkMeets on Youtube.

Email https://markmeets.com/contact-form/

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