> For the complete documentation index, see [llms.txt](https://docs.bloop.plus/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bloop.plus/best-practices/choosing-rewards.md). # 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](/referral-program/rewards.md). ### 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. ### Recommended rewards by industry 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](/best-practices/designing-your-offer.md)). 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](/referral-program/rewards.md) — reward type, value, minimum requirements, expiry, and the review period. * Decide how referrers share that reward in [Referral methods](/referral-program/referral-methods.md). * Once you have enough referral traffic to compare fairly, pit two reward variants against each other in [A/B testing](/referral-program/ab-testing.md) 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](https://bloop.plus/blog/best-referral-incentives/). ### Related * [Best practices: designing your referral offer](/best-practices/designing-your-offer.md) * [Set up referrer and referee rewards](/referral-program/rewards.md) * [The best referral incentives](https://bloop.plus/blog/best-referral-incentives/) --- # Agent Instructions This documentation is published with GitBook. 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