Best Practices: How to Choose a Friend Offer for Your Store

The Friend Offer is an incentive given by your store that your Advocates pass to their Friends, to encourage them to make a purchase at your store. An optimal Friend Offer will increase conversions for your referral program so that you get more sales.

Here's what we have learned about setting Friend Offers:

  1. Think about your margins but the bigger the discount you can offer the better.
    The Friend Offer should be enticing enough that friends seeing the offer will be more likely to go to your store to see your products. So the bigger the discount you can offer, the better.
  2. Make sure it's an offer that you don't lose out on.
    The Friend Offer should be a discount that you can afford. Set it at a discount that you wouldn't lose money on if all your customers purchased at that price.
  3. Think about setting the Friend Offer with respect to the Referral Reward. 
    Advocates need to want to share the Friend Offer with their friends. The amount of the Friend Offer in comparison to the Referral Reward can have an impact on that. In general, for strong brands, consider giving a bigger Friend Offer compared to the Referral Reward. For weaker brands, consider giving a lower Friend Offer compared to the Referral Reward. If you are interested, read more about that
  4. Include an expiry date for the Friend Offer.
    Setting an expiry date will add an element of time urgency to the offer, and in general, that would increase the likelihood of the friend making a purchase using that offer. It also can make the discount seem more exclusive, which might make friends perceive it as more valuable.
  5. Still undecided? Start with a 25% discount and experiment from there.
    The good thing about your referral program is that it's very easy to make changes to it. So if you're finding it hard to decide, we'd recommend starting with a 25% discount as an experiment, and changing it up once you see how people behave.

Jason is the author of this solution article.

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