Encourage customers to invite their friends to your store and reward them for referrals
Important note for users of Refer a Friend v.1.*: version 1.X and 2.X are not fully compatible. To find out more details, please read the description.
Advocacy is the end game of most marketing effort. Whether it be through unique portfolio, great customer service, or engaging content, once you’ve convinced customers to speak on your behalf you’ve gained one of the most powerful marketing tools available. Not only do referrals and personal recommendations enjoy a much higher conversion rate, they also attract higher quality customers and increased average order value.
Convincing your customers to become your advocates may take a lot of effort over a long period of time, but it does not have to be the case. What we have for you is an advocacy tool with a built-in loyalty program that rewards customers for inviting people to your store. Our Magento Refer a Friend extension comes with a full range of customization options, allowing you to set up the referral program in Magento to fit your business model and reward the type of behavior that suits you best.
There is a number of options available for the customer to refer people to the store:
Landing page for the referral link is provided by the store owner.
Invites are logged within the customer area, allowing the customer to see how many people have responded and the amount of bonuses earned.
A customer may receive bonus for one of three things: number of customers attracted, amount they spent, or the number of items they bought. There is also an option to reward those who responded to an invite with a one-off reward upon sign up.
You decide at what point the bonus is activated (e.g. per each 5 customer sign-ups or each $100 spent, etc.), whether it is going to be a fixed sum or a percentage discount, and how many times a customer will be able to earn the same bonus.
Earned bonus may or may not be used together with a discount code, it may be limited to a certain percentage of cart total, and it is possible to allow bonuses only with purchases over a certain amount.
Within this Magento referral extension an unlimited number of rules may create to be used at different times or even simultaneously. In case rules overlap we suggest assigning priority numbers for each rules to decide which goes first. There is also an option to define whether the rules are compounded or limited to the first one engaged.
It is possible to edit the amount of bonus earned manually from backend.
Using the Refer a Friend extension together with the below Aheadworks products, online merchants get more valuable insights.
Tanya Poleshchuk | Head of Customer Care
I will be happy to tell you more about this extension!
With this extension, merchants are able to create own refer-a-friend programs. It allows you to generate new sales and ramp your customer base up.
Build a refer-a-friend program that actually works.
Note that a referral program is a general concept and it does not implies any specific attributes. The whole scope may include affiliate, customer referral, and partner programs to be defined as referral ones.
For example, affiliate programs are created for rewarding the activity of external agents, while partner programs are designed for rewarding third-party vendors or wholesale buyers of products and services. Meanwhile, the refer-a-friend program created by this extension helps to keep loyal existing customers and find new shoppers.
According to statistics, customers prefer purchasing products or services 4 times better if they are referred by friends. Moreover, the lifetime value of new referral shoppers is 16% higher than non-referrals. Finally, the reward points earned within refer-a-friend programs are strong motivating factors by themselves regardless of the obtained reward amounts.
So, the functionality provided by the extension is valuable by itself. Still, we also made our best to offer you simple and effective customer referral programs with straight rules, familiar interfaces and visual elements easily perceived by customers and non-tech savvy staff. The extension includes rich backed configuration options and the user-friendly frontend interface facilitating the whole process of creating refer-a-friend program in your store.
The functionality available allows creating RAF (refer-a friend) programs, which are easily comprehensible and intuitive. Almost without your participation, customers are able to join the program attracting new clients with discounts and receiving rewards in return.
Make sure your referral program does not kill your business.
There is nothing worse than to create a referral program which is poorly operated. Customers certainly like the fact is that you can offer big discounts, but they won’t work if it takes forever to obtain the rewards. As we know, a spoon is dear when lunch time is near.
So, the best idea here is to set rewards being transferred to brand advocates just after their referrals make the purchase. In its turn, it considerably increases the chances for immediate reward application by brand advocates. If a brand advocate is not in a hurry to spend awards for some reasons, you can define reward expiration terms. It makes brand advocates use points more actively making a referral program work in a proper manner.
Flexible configuration makes it possible to create motivating programs attractive for both brand advocates and newly referred customers. You can even differentiate programs for particular store views to make them corresponding to certain customer groups and local mindset preferences.
You are able to create refer-a-friend programs, which are beneficial for all the parties, including you, your brand advocates, and their friends. With the functionality provided, the program is well-managed and well-performing simultaneously, which ensures you profit and LTV increases.
Prevent your business from frauds, fake referrals, and financial losses.
It’s vital to set a customer referral program in the way it charges rewards to brand advocates only in the cases their referrals achieve the store and make purchases. For this purpose, Refer a Friend offers the functionality, which protects the fraudulent use of referral links.
Situation 1. Imagine the following situation. Linda sends the link to Robert, a new customer. Robert follows this link, comes to the store and makes the purchase. The extension charges reward points to Linda. It’s OK.
Situation 2. But what if Tom, a current client, sends his link to Linda to make a purchase? Since Linda is an existing customer, Tom will not get the reward via the Refer a Friend extension. That’s how the extension fraud protection system works. Also, note that brand advocates can’t refer themselves. The extension will block such attempts.
Moreover, to prevent the situation when brand advocates get drastically large discounts and apply them to buy the products or services with extremely low prices, it is reasonable to set the minimum order amount when brand advocates can apply their earned points. Moreover, to prevent your business from significant financial losses, it is possible to define the maximum reward amount that can be spent per order.
As a result, you have a safe and reliable refer-a-friend program at hand with various functional opportunities able to stop frauds and keep your business away from unreasonable loses.
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