A friend once shared how they were spending more on ads than they were earning from their WooCommerce store sales. I suggested implementing a rewards program.
We introduced a simple refer-a-friend system, and within three months, their word-of-mouth sales almost doubled.
Setting up WooCommerce rewards programs can seem daunting. Many plugins I’ve tried were overly complex and required extensive configuration.
That’s why I was impressed by two plugins that simplify the process: RewardsWP for easy refer-a-friend programs and Loyalty Program by Advanced Coupons for a comprehensive system with points, rewards, and referrals.
This guide will show you how to establish a WooCommerce rewards program to boost sales and retain customers without relying on costly ads.
What Is a WooCommerce Rewards Program? (And Why You Need One)
A WooCommerce rewards program offers customers bonuses or incentives for their loyalty.
These programs encourage repeat purchases, increase engagement, and turn satisfied customers into long-term advocates for your store.
You can create two popular types of rewards systems in WooCommerce:
- Referral (Refer-a-Friend) Program: Rewards existing customers for referring new shoppers. This method turns happy buyers into brand promoters and helps you attract new customers without spending on ads.
- Points-Based Loyalty Program: Gives customers points every time they make a purchase, leave a product review, or perform another action on your website. Those points can later be redeemed for discounts, coupons, or even free products.
Here’s a quick comparison of both approaches to help you decide which one fits your store best:
| Refer-a-Friend Program | Points Loyalty Program | |
|---|---|---|
| Main Goal | Bring in new customers through referrals. | Reward existing customers for repeat purchases. |
| How It Works | Customers share a referral link and earn a reward when their friend buys. | Customers earn points for purchases and actions, then redeem them for rewards. |
| Best For | Stores focused on growth and word-of-mouth marketing. | Stores focused on customer retention and loyalty. |
| Pros | Simple setup, fast results, low marketing cost. | Flexible, encourages repeat sales, builds long-term engagement. |
| Cons | Needs active sharing; slower growth with small audiences. | Requires more setup and tracking. |
| Example Reward | $10 discount for both customers. | 1 point per $1 spent, redeemable for coupons. |
| Best Plugin | RewardsWP | Loyalty Program by Advanced Coupons |
Here are some of the biggest benefits of adding a rewards program to your WooCommerce store:
- Reduce Marketing Costs: Happy customers are your best marketers. A referral program helps you reach new audiences through word-of-mouth, while a loyalty program rewards your regular buyers and keeps them coming back—no expensive ads required.
- Improve Customer Retention: When people earn points or referral bonuses, they have a reason to shop again. These small rewards help turn first-time buyers into long-term customers.
- Increase Repeat Purchases: Whether it’s redeeming points for a coupon or using a discount they earned by referring a friend, customers are more likely to make another purchase when there’s a reward waiting for them.
- Boost Average Order Value: You can set minimum spending limits for discounts or redemption. This simple rule often nudges
