Referral Reward Strategy: Retail

Recommended Reward Structure

Extole recommends offering a reward equivalent to 20% off, either as a percentage or a fixed dollar amount based on your average order value (AOV). This structure ensures both the advocate and their friend receive a meaningful incentive.

If this offer does not align with your other promotions, consider a reward structure that meets the following criteria:

• Balanced and equal rewards for both the advocate and the friend (e.g., Give 20%, Get 20%) to create a strong incentive for sharing.
• Comparable or greater value than your standard SMS/Email welcome offer, ensuring referral rewards feel special and valuable.
• Usable on all (or most) products to prevent friction at checkout and encourage broader adoption.

Adapting Your Referral Program Throughout the Year

To maximize engagement, referral programs should evolve in alignment with your broader promotional calendar. Adjusting rewards seasonally can help sustain momentum during slow periods and amplify referral volume during peak shopping times.

Consider the following strategies:

• Increase engagement with limited-time offers – During key promotional windows (e.g., holiday sales, back-to-school, or post-holiday lulls), run higher-value referral rewards or double rewards campaigns to create urgency and encourage participation.
• Offer a small, stackable discount (e.g., 5-10%) – Enhance your other onsite deals, to boost conversions while maintaining flexibility.
• Diversify reward types – Experiment with non-monetary incentives like free gifts, exclusive access, or giveaway entries to keep the referral program fresh and engaging.

Don't Forget A/B Testing

Like all aspects of the referral program, the incentives can and should always be tested to see what works best for your audience. Check out the resources below to set one up.