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> Use this file to discover available pages before exploring further.
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# Referrals Program: Overview and Setup

Our **Referrals Program** will allow existing customers to refer their friends and family to your shop and earn a reward when they make their first purchase. The referred friend will also get a discount for this first purchase.

A **Referrals Program** offers a cost-effective way to reach new customers without relying solely on paid advertising. It will only give rewards for successful referrals, incentivising your customers to bring in new high-quality leads who are already pre-sold on your brand and will complete a purchase.

## Setting up the Referrals Program

The **Referrals Program** is included in our [**Loyalty Program**](https://www.froonze.com/blog/loyalty-program-increase-retention-points-rewards) subscription plugin and available in the [**Advanced Plan and above**](https://www.froonze.com/pricing).

After you have subscribed to the plan, you can set up the program in just a few minutes:

*   Navigate to our **[Loyalty Program ➜ Referrals](https://admin.shopify.com/apps/froonze-app/loyalty/referrals)** settings
*   Set up the referrer's reward: you can choose to reward the referrer either **with loyalty points** (*that will be added to his/her current loyalty balance*) or **with** **a coupon** for an amount, a percentage, or a free shipping discount.
*   Set up the friend's reward: the friend will be rewarded **with a coupon** that can only be applied to a first purchase. You can choose this coupon to be either for an amount, a percentage, or a free shipping discount.
*   You can also set up additional options along with the order discounts, like minimum order amounts, expiration, and combinations with other types of discounts.
*   Finally, make sure the Program is enabled with the toggle on top, and click **Save**

![](https://storage.crisp.chat/users/upload-1/website/-/8/7/3/1/873182aab5747000/lls8um6hr6_v7tp7u.png =1000xauto)

## How does it work for your customers?

Existing customers will be able to see their referral links in their account dashboards, copy and share it with friends.

![](https://storage.crisp.chat/users/upload-1/website/-/8/7/3/1/873182aab5747000/2h1wtykmhb_1sm7gwu.png =1000xauto)

When their friends use this link to access the site, they will be prompted to enter their email addresses to create a coupon for their first purchase. The referral coupon is exclusive to new customers, it is limited to one per account, and it is specific to this account (*email address*). This means that for the discount to be applied, the **friend** needs to check out with the same email address. And the **referrer** will only receive the reward once the friend's order has been **completed and fulfilled**.

![](https://storage.crisp.chat/users/upload-1/website/-/8/7/3/1/873182aab5747000/yubbbxescr_1legxex.png =1000xauto)

All activity regarding referrals can be reviewed in the **Activity** panel as well as in the Admin Settings activity panel. Ongoing and past referrals can have three status:

*   **Complete**: if the referral was completed
*   **Pending**: if the friend's purchase hasn't been completed or fulfilled yet
*   **Cancelled**: if the referrer's account was deleted or excluded by an admin action, or if the Referrals Program was cancelled during ongoing referrals

![](https://storage.crisp.chat/users/upload-1/website/-/8/7/3/1/873182aab5747000/z1pt2iw4vb_4ja8d8.png =1000xauto)