Today, we're thrilled to announce the launch of our most-requested feature—Refer a Friend for Mage Loyalty. After listening to merchant feedback, we've built a referral program that takes less than a minute to set up and turns your satisfied customers into a revenue-generating sales force.
Why Referral Programs Are Non-Negotiable in 2025
The numbers don't lie. Loyalty program members already spend 12–18% more per year than non-members. Now imagine multiplying those high-value customers through referrals—each one bringing in friends who are pre-qualified and more likely to convert.
With retail e-commerce sales projected to reach $4.3 trillion in 2025, the competition for customer attention has never been fiercer. Paid advertising costs continue to climb, making customer acquisition increasingly expensive. Meanwhile, referral programs offer one of the highest ROI marketing channels available—customers acquired through referrals have better retention rates and higher lifetime values than those from paid channels.
Here's the competitive advantage your rivals won't tell you about: referral programs create a compounding growth effect. One referred customer becomes a referrer themselves, creating a self-sustaining acquisition loop that costs a fraction of traditional marketing.
The Problem With Most Shopify Referral Programs
We've heard the same frustrations from merchants time and again:
Complex setup processes that require technical knowledge and hours of configuration. Many referral apps force you to navigate confusing dashboards, write custom code, or hire developers just to get started.
Limited customization options that don't align with your brand strategy. You're stuck with generic reward structures that don't reflect how your business actually operates or what motivates your specific customer base.
Disconnected experiences where your loyalty program and referral program don't communicate. Customers manage points in one place and referrals in another, creating friction that kills participation rates.
Inflexible reward structures that lock you into percentage discounts when you'd rather offer free products or exclusive perks. Your referral incentives should match your business model, not force you into a one-size-fits-all approach.
The truth is most merchants never launch referral programs—not because they don't see the value, but because the barrier to entry feels insurmountable.
Introducing Refer a Friend by Mage Loyalty
We built Refer a Friend to solve every pain point we've seen merchants struggle with. This isn't just another referral feature—it's a complete referral system that integrates seamlessly with your existing loyalty program and launches in under 60 seconds.
Lightning-Fast Setup (Seriously, Less Than 60 Seconds)
Here's what we discovered after analyzing how merchants actually use referral programs: the setup process matters more than any other factor in determining success. If it takes hours to configure, most merchants abandon it halfway through.
That's why we obsessed over simplicity. You can launch a fully functional referral program faster than it takes to write a promotional email:
Navigate to the Referrals section in your Mage Loyalty dashboard
Set your referrer reward (what customers get for referring)
Set your referee reward (what their friends get for signing up)
Click activate
Done. Your referral program is live.
Pro Tip
Start with asymmetric rewards—give referrers a higher value reward than referees. This incentivizes your existing customers (who already trust you) to actively promote your store, while new customers still get a compelling reason to make their first purchase.
Complete Customization Without the Complexity
Flexible Reward Options
Choose from four reward types for both referrers and referees:
Fixed Amount Off: Give a specific dollar/pound discount (£10 off, $25 off)
Percentage Off: Offer percentage-based savings (15% off, 20% off)
Free Shipping: Remove shipping costs to lower purchase barriers
Free Product: Award specific products automatically
This flexibility means your referral rewards can align perfectly with your margins, average order values, and promotional strategy. Selling high-ticket items? Percentage discounts might work better. Running on thin margins? Free shipping could be your sweet spot.
Custom Landing Pages
Control exactly where referred customers land when they click a referral link. Send them to your homepage, a special landing page, or a curated collection—whatever maximizes conversion rates for your store.
Social Sharing Built In
Your customers can share their referral links through multiple channels without leaving your site:
Direct link copying for messaging apps and email
One-click Twitter/X sharing
Facebook sharing
WhatsApp integration (configurable)
The easier you make sharing, the more referrals you'll generate. We tested these social integrations to ensure customers can share in their preferred channel with zero friction.
Good to Know
Referral rewards can stack with loyalty points. When someone refers a friend and that friend makes a purchase, the referrer can earn both their referral reward AND points for any purchases they make themselves. This dual-incentive structure drives even higher engagement.
Setting Up Your Referral Program: A Quick Walkthrough
Since you can launch in under a minute, here's exactly what that looks like:
Step 1: Access Referral Settings
Log into your Mage Loyalty dashboard and navigate to the Referrals section. You'll see two main configuration areas: Referral Rewards and Social Sharing Settings.
Step 2: Configure Referrer Rewards
Set what your existing customers receive when someone uses their referral link and makes a purchase. Consider your margins and customer lifetime value when choosing the reward amount.
For example, if your average order value is £50, a £25 off reward (as shown in the dashboard) represents 50% value—extremely compelling for customers to actively promote your store.
Step 3: Configure Referee Rewards
Set what new customers receive when they use a referral link. This should be attractive enough to convert first-time visitors but sustainable at scale.
The £10 off example (shown in the dashboard) removes friction for new customers while keeping your margins healthy. New customers see immediate value, making them more likely to complete their first purchase.
Important Warning
Make sure your referee reward is valuable enough to motivate action but doesn't exceed your first-purchase profit margin. If you're losing money on every referred customer, your program won't be sustainable even if it generates volume.
Step 4: Set Your Referral Landing URL
Choose where customers land when they click a referral link. You can customize both the domain and the path, or leave it blank to direct to your homepage by default.
Step 5: Enable Social Sharing Channels
Select which platforms customers can use to share their referral links. Twitter/X and Facebook come enabled by default, with WhatsApp as an optional addition for mobile-focused audiences.
You can also customize the default sharing message that pre-populates when customers click social share buttons. Make it conversational and benefit-focused: "Check out [your store] and claim a free gift!" performs better than generic "Click my link" messages.
Step 6: Activate and Promote
Once configured, your referral program goes live immediately. Customers will see the referral option in their loyalty widget, complete with their unique link and social sharing buttons.
The widget displays exactly what rewards they'll earn and what their friends will receive—transparency that encourages participation.
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If you need help deciding what are the best way to incentivise your customers with your refer a friend program, you can check out our complete Shopify referral program guide here.
Maximizing Your Referral Program Success
Having the program live is just the beginning. Here's how to drive actual results:
Announce the launch prominently. Send an email to your existing customers announcing the new referral program. Explain the benefits clearly and include a direct link to their loyalty dashboard where they can access their referral link.
Add referral CTAs to high-traffic pages. Include referral program mentions in your order confirmation emails, account dashboard, and even your thank you page. The more visibility, the more participation.
Create referral-specific campaigns. Run limited-time promotions where referral rewards temporarily increase. "This week only: refer a friend and get £50 off instead of £25" creates urgency that drives immediate action.
Leverage your VIP tiers. If you're using Mage Loyalty's VIP program, give top-tier customers enhanced referral rewards. They're your most engaged customers and most likely to refer successfully.
Track and optimize. Monitor which customers are generating the most referrals and what rewards are driving the best conversion rates. Use this data to refine your program over time.
Special Note
Merchants using integrated loyalty and referral programs report 40-60% higher engagement rates compared to those using separate systems. When customers can access everything in one place, they're far more likely to participate actively.
Conclusion
Launching a referral program shouldn't require technical expertise or hours of setup time. Your customers are already talking about your products—now you can reward them for it automatically, starting in less than a minute.
No technical knowledge required, no complex configurations, just a straightforward referral program that starts working immediately. After your quick setup, the platform handles everything automatically—tracking referrals, distributing rewards, and integrating seamlessly with your loyalty program.
Ready to turn your customers into your most effective sales team? Install Mage Loyalty today and launch your referral program before your next coffee break. With our 7-day free trial, you can see the results firsthand—without any commitment. Start your free trial now.
FAQ
How long does it take to set up a referral program on Shopify with Mage Loyalty?
Less than 60 seconds. Navigate to the Referrals section in your Mage Loyalty dashboard, set your referrer and referee rewards (fixed amount, percentage, free shipping, or free product), configure your landing URL if desired, enable social sharing channels, and activate. Your referral program goes live immediately with no coding or technical expertise required.
What types of rewards can I offer in my Shopify refer a friend program?
Mage Loyalty supports four flexible reward types for both referrers and referred friends: fixed amount discounts (like £10 off or $25 off), percentage-based discounts (15% off, 20% off), free shipping on their order, or free products that are automatically added to their cart. You can mix and match reward types between referrers and referees to create the optimal incentive structure for your business.
Can customers share their referral links on social media?
Yes. Mage Loyalty's Refer a Friend program includes built-in social sharing for Twitter/X, Facebook, and WhatsApp (configurable). Customers can also copy their unique referral link directly to share via email, text messages, or any other communication channel. The easier you make sharing, the more referrals you'll generate—which is why we built multiple sharing options directly into the loyalty widget.
How does the Shopify referral program integrate with my existing loyalty program?
Refer a Friend is built directly into Mage Loyalty, not bolted on as a separate app. Customers access their referral links through the same loyalty widget where they check points and redeem rewards, creating a unified experience. Referral rewards and loyalty points can stack—customers can earn their referral reward AND continue earning points on their own purchases. Everything is managed from one dashboard on your end, eliminating the fragmentation that comes with using separate apps.
What happens when someone uses a referral link on my Shopify store?
When a new customer clicks a referral link, they're directed to your store. Once they complete their first purchase, both the referrer and the referee automatically receive their designated rewards. The referring customer sees their reward added to their account, and the new customer receives their incentive—all without any manual processing required from you.
Can I customize where referred customers land when they click a referral link?
Yes. You have complete control over the referral landing URL. Set both the domain and the path where referred customers arrive, or leave it blank to default to your homepage. Many successful merchants create dedicated landing pages for referred traffic that highlight the referee reward and showcase best-selling products, maximizing the conversion rate of referred visitors.
Do I need a separate app for referrals if I already use Mage Loyalty?
No. Refer a Friend is included as part of Mage Loyalty—no additional apps needed. This integrated approach means better customer experience (one place to manage all rewards), simplified operations (one dashboard to manage), and stronger engagement (referral and loyalty programs work together instead of competing). Merchants using integrated systems report 40-60% higher engagement rates compared to those juggling separate loyalty and referral apps.
How do I promote my new referral program to existing customers?
Start with an email announcement explaining the referral program and its benefits. Include direct links to customers' loyalty dashboards where they can access their referral links immediately. Add referral program mentions to your order confirmation emails, thank you pages, and account dashboard. Consider running limited-time campaigns where referral rewards temporarily increase to drive urgency. The most effective promotion happens at high-engagement moments—right after positive purchases or when customers achieve VIP tier milestones.
