Referral Marketing 101: 5 Tips To Boost Ecommerce Growth

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Referral Marketing 101: 5 Tips To Boost Ecommerce Growth

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Worldwide, people spend more time online browsing for the next best thing. Shopping for their favorite items has also become more convenient, with e-commerce stores emerging everywhere. Because products are now freely available, clients rely heavily on word of mouth or referrals to steer them toward the right purchase.

An article by Forbes Advisor predicts that 20.8% of purchases could be online in 2023, while it could increase to 24% in 2026. Furthermore, the growing popularity of shopping online changed how business owners view their marketing strategy.

More precisely, e-commerce store owners now include referral marketing programs to incentivize their clients to send new business their way. For more detail on this strategy, continue reading here for tips to boost your e-commerce growth:

  1. Reward both old and new clients

In the past, referral programs started by rewarding only the person doing the referral. However, the latest strategy would be to incentivize both old and new clients. It will purposefully draw in new customers and instantly put the company in a favorable light.

Therefore, to build a referral program with traction, companies could change their marketing to include both of these customers. Along with hooking new business, existing clients will also feel more confident to refer family or friends, knowing there will also be a reward for them.

Clients tend to invest more in businesses with caring customer approaches. Offering a reward before they even made a purchase could set a positive tone for the rest of the client relationship.

  1. Determine the best goal for the campaign

Marketing campaigns with a clear goal tend to be more successful than others. Although funneling more clients to the online store is a good goal, measuring the success or outcome would be more beneficial.

Furthermore, having specific data to show the number of interactions allows the business to make its target more tangible. Understanding how customers react to a new referral marketing campaign could give the e-commerce store owner additional insights.

Seeing how clients respond provides opportunities to customize the strategy for maximum results. For this reason, adding a measuring tool or doing metrics analysis is invaluable to keeping the incentive program's goal on track. Making the necessary adjustments to the referral program leads to accomplishing the campaign's purpose.

  1. Consider adding variety to the incentives

In a digital age where clients can easily find new products, new promotions, and new suppliers online, clients expect variety. A referral marketing campaign could thus quickly become uninspiring.

Instead of running the same referral program for months, e-commerce store owners could consider changing some aspects. Consequently, the essence of the process remains the same, although the rewards may differ.

One way of creating new hype could be to offer tiered incentives for clients who consistently refer new clients. Clients who thus call others to action remain engaged with the program. At the same time, both they and the company benefit over time.

  1. Make invites instant message friendly

Tedious referral programs that are challenging to share with others will attract fewer partaking clients than store owners would hope for the campaign. Online shoppers may want social proof of the product working for others before they invest their money. So, making it challenging to find this proof could discourage them from buying an item.

Sprout Social explains that 83% of clients recommend a brand to family or friends. Furthermore, the article states 82% of Americans will ask for referrals from their loved ones. These statistics prove the value of social proof for a referral marketing campaign.

The word could travel fast when referral marketing includes ways for clients to share the details on social platforms. Moreover, directly sending a promotion to another person via instant messaging gives them social proof on a one-on-one level.

  1. Ask for referrals from current partners

In addition to unforgettable headlines, eye-catching colors, and a clear explanation of the benefits, customization of a referral request is essential. When asking for referrals, your partners and suppliers should understand their total value from only a glance.

According to HubSpot, some businesses are unsure how to ask for referrals or structure their approach. Their blog post also explains 13 ways of asking for referrals that could guide e-commerce stores in the right direction.

With many available options, businesses could likely find the most successful way for their needs. Companies that don't capitalize on this form of marketing may lose out on many new clients and their spending. As a result, it could negatively affect their growth and bottom line.


Referral marketing has become synonymous with incentives because customers ask: "What do I get from the deal?" However, incentivizing clients for their word-of-mouth invitations to others is worth more than gold for an e-commerce store.

The driving force behind referral marketing campaigns is the availability of plenty of other options for them to choose from online. Making your brand more accessible and visible could thus include spreading the word through a referral marketing campaign that benefits all.


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Referral Marketing 101: 5 Tips To Boost Ecommerce Growth

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