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Choosing Rewards

The reward you offer is one of the biggest levers on whether your referral program spreads, so decide it on purpose rather than copying a competitor. The short answer: match the reward type to how often your customers buy, and set the combined value below your profit on a referred order so every successful referral stays profitable. This article walks through how to make that decision for your store, then points you to the Bloop settings that put it live.

A Bloop referral has two rewards, and they do different jobs. The referee reward lowers the barrier for a new customer to try you, so it has to feel worth acting on. The referrer reward thanks an existing customer for the introduction, so it has to feel worth the small social risk of recommending you. Tuning both is the work; this page is about the strategy behind the numbers you eventually type into the rewards settings.

Start from your repeat-purchase pattern

The reward type should follow how customers buy from you, not what looks generous on a landing page.

  • Store credit pulls a customer back for another order, so it suits stores people buy from often. It also keeps the reward inside your store, which protects cash.

  • A percentage or fixed discount carries more weight when purchases are rare or one-off, because credit toward a "someday" order feels weak.

  • Cash is the strongest signal for high-ticket or infrequent purchases, where neither credit nor a discount feels worth a recommendation. Like a custom reward, it is tracked but not settled automatically, so plan to process it by hand.

  • A custom reward — a free gift, early access, swag, or a service you fulfil yourself — thanks a referrer without any discount at all, which suits premium brands wary of markdowns. Bloop holds it for you to approve and fulfil by hand rather than settling it automatically.

There is no universal right answer. Use the table as a starting point, then refine against your own margins.

Industry
Buying pattern
Suggested referrer reward
Suggested referee reward

Fashion & apparel

Frequent, impulse-driven

Store credit toward the next order

Percentage off the first order

Subscription

Recurring, retention-led

Store credit or a free billing cycle

Discount on the first cycle

Beauty & cosmetics

Repeat, habit-forming

Store credit to encourage restocking

Fixed amount off a trial-sized first order

Electronics & high-ticket

Infrequent, considered

Cash or a meaningful fixed amount

Fixed amount off the first purchase

Food & beverage

Low margin, high frequency

Modest store credit

Small percentage or a free add-on

The thread running through every row: high-frequency stores benefit from store credit because it loops customers back, while infrequent high-ticket stores often need cash or a sizeable fixed amount to feel worth a recommendation.

Position the reward, not just its price

The same value can read as a thank-you or as a markdown depending on how you frame it. Store credit framed as a "treat" or "thank-you" feels like a gift and keeps spend inside your store, while a raw percentage discount can read as just another sale. Tying the reward to a clear reason — "because you brought us a friend" — makes even a discount feel earned. And scale the reward to the ask: a one-tap share needs only a light nudge, while asking for a bigger commitment justifies a larger reward.

Set a value you cannot lose money on

The safe rule is simple: the referrer reward plus the referee reward should stay below the profit you make on a referred order. A referral that costs you more than it earns is a slow leak, even when conversion looks healthy.

  • Estimate the gross profit on a typical first order from a new customer.

  • Subtract the referee discount, which comes off that first order directly.

  • Whatever profit remains is your ceiling for the referrer reward.

If that ceiling is uncomfortably tight, lean on store credit for the referrer side — it is redeemed against a future order, so its real cost is your margin on that order, not its face value.

Be cautious with minimum-spend conditions on the reward: a "spend over X" string can make the offer feel like a sales push and suppress sharing, so weigh it against the margin it actually protects (see designing your offer). As your program grows, watch reward value too — an oversized reward on a very wide audience can start attracting sign-ups chasing the payout rather than customers who genuinely love you.

Decide where the reward applies

A reward only works if it is easy to use. In Bloop, discount and store-credit rewards settle automatically inside Shopify, while cash and custom rewards are tracked for you to handle manually. If predictable, hands-off operation matters more than maximum motivation, prefer the automatic types and reserve cash for high-ticket programs where it genuinely moves the needle.

Set it up in Bloop

Once you have chosen a type and value:

  • Configure both sides in Set up referrer and referee rewards — reward type, value, minimum requirements, expiry, and the review period.

  • Decide how referrers share that reward in Referral methods.

  • Once you have enough referral traffic to compare fairly, pit two reward variants against each other in A/B testing before rolling one out to everyone.

  • Mind the wording: "your friend gets 20% off too" lands better than "earn a reward".

  • For worked examples of incentive ideas across stores, see the best referral incentives.

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