WooCommerce Rewards Program: Setup Guide for Increased Sales

I remember helping a friend whose WooCommerce store was spending more on ads than it was making in sales. It’s a frustrating spot to be in, and it’s where many online store owners get stuck.

I suggested we add a rewards program, and we launched a simple refer-a-friend system. Within just a few months, their word-of-mouth sales had nearly doubled. This proves you don’t always need a huge ad budget to grow.

I’ve tested many rewards plugins, and I know how complicated they can feel when you’re just starting out. That’s why I was so impressed to find two tools that make this process straightforward for anyone.

In this guide, I’ll teach you how to set up a WooCommerce rewards program to boost sales and keep customers coming back. We’ll cover two methods step-by-step, so you can choose the one that’s right for your store.

Which Method Is Right for You?

• Go with Method 1 (RewardsWP) if you’re new to rewards programs and want the fastest way to get new customers through word-of-mouth. It’s simple, focused, and effective.
• Choose Method 2 (Advanced Coupons) if you want to build a complete loyalty system to reward existing customers for many actions (like purchases and reviews) and also want a referral system built in.

What Is a WooCommerce Rewards Program? (And Why You Need One)

A WooCommerce rewards initiative is a structured approach that provides bonuses to customers to foster loyalty.

These programs aim to foster repeat business, deepen customer interaction, and convert satisfied customers into loyal supporters of your brand.

Within WooCommerce, there are two common types of loyalty programs that you can establish:

• Referral Program (Invite-a-Friend):This rewards current customers when they bring in new shoppers. This approach transforms satisfied shoppers into brand advocates, helping you acquire new customers without ad spend.
• Loyalty Program Based on Points:Customers get points for each purchase, when they post a product review, or take other actions on your site. These points can then be exchanged for discounts, vouchers, or even complimentary items.

Here’s a comparison of the two strategies to guide you in determining the best choice for your online store:

Here are some of the biggest benefits of adding a rewards program to WooCommerce:

• 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 customers to spend a little more to claim their reward.
• Build a Competitive Advantage: When two stores offer similar products, shoppers tend to choose the one that values their loyalty. A well-designed rewards program gives you that edge and helps create a real sense of community around your brand.

Ultimately, loyalty programs communicate value to customers. They reinforce the idea that their patronage is appreciated, encouraging repeat business.

Method 1: How to Create a Refer-a-Friend Rewards Program in WooCommerce (Using RewardsWP)

This section details the creation of a straightforward referral program. This setup rewards existing customers for attracting new shoppers to your online store.

I will guide you through the process of establishing a rewards system using the RewardsWP plugin.

While numerous WooCommerce loyalty plugins are available, RewardsWP is a strong choice if your primary objective is the rapid deployment of a referral program.

I consider it a user-friendly option for beginners due to its focus on referrals, which it handles efficiently without unnecessary complexity.

For more in-depth information about the plugin, see our comprehensive RewardsWP review.

Step 1: Install and Activate RewardsWP

Begin by registering for an account on the RewardsWP website. Simply adhere to the prompts displayed on the screen to establish your account and complete the payment.

Then, install and activate the RewardsWP plugin within your WordPress admin area. Consult our beginner’s guide on WordPress plugin installation for detailed steps.

Upon activation, a ‘RewardsWP’ option will appear within your WordPress dashboard menu.

The initial task involves entering your license key. This key is located in your RewardsWP account area or within the confirmation email received after purchasing the license.

Simply paste your license key into the RewardsWP » Settings area, and then select ‘Connect’.

In my tests, the plugin seamlessly connected to my WooCommerce store, without any need for additional setup. This simplicity is ideal for users who are new to such tools.

While this tutorial centers on WooCommerce, keep in mind RewardsWP also works with Easy Digital Downloads and MemberPress, offering versatility for digital download platforms and membership sites.

Step 2: Set Up Your Referral Rewards

The subsequent step involves setting up rewards for both your existing customers and those they refer. Start by going to RewardsWP » Settings within the WordPress admin panel, and then select the ‘Referrals’ tab.

Begin by activating the referral program by toggling the Program Status from ‘Inactive’ to ‘Active’. Remember, no changes will be visible on your live site until you save them.

With the program active, you can configure the rewards. There are two key sections: ‘Advocate Reward’ (for existing customers) and ‘Friend Award’ (for new customers).

It has been my experience that a referral program rewarding both existing and new customers is more effective. New customers are more likely to use a referral link if they also benefit.

When you click the ‘Add Reward’ button, a popup titled ‘Select Advocate Reward’ (or Friend Award) will appear.

This is where you select the type of incentive to provide:

• Amount discount:A fixed monetary deduction from the total purchase price; for instance, a reduction of $10.
• Percentage Discount:A discount represented as a percentage of the order total; for example, a 15% discount.
• Complimentary Shipping:Eliminates all shipping charges for the order’s delivery.
• Complimentary Item:Provides a particular item from your online store without any charge.

Consider the following example: upon selecting ‘Amount discount,’ you will be directed to a separate page where you can establish the precise criteria for this reward. You’ll encounter input fields for:

• Discount Amount:The precise sum in dollars that will be subtracted as a discount.
• Minimum Purchase Total:The prerequisite spending amount for a customer to qualify for and utilize the reward.
• Reward Validity Period:The duration the reward remains active, with choices spanning from 7 days to 1 year (3 months, 6 months, or 1 year are available).

Remember to select the ‘Add Reward’ button located at the base to ensure your settings are saved successfully.

The other reward options, such as ‘Percentage off’ and ‘Free shipping,’ will present you with settings that are quite analogous and easy to manage.

After you finish setting up and saving the reward for the Advocate, just repeat the same actions for the Friend.

After configuring your rewards for both the Advocate and the Friend, remember to select the ‘Save Changes’ button at the top of the page to enable your rewards initiative.

Recommendations forCrafting a Straightforward and Impactful Rewards System

In my experience, a straightforward and easily understandable rewards program is most effective. Providing a transparent and beneficial offer for both individuals transforms satisfied customers into dedicated promoters.

For example, you could give the Advocate a $10 discount for a successful referral and welcome the new Friend with 15% off their purchases for 7 days. This provides an immediate, clear benefit and is very easy to set up.

While simple discounts are very effective, don’t overlook the ‘Free Product’ reward. This can be a powerful incentive because a tangible product often feels more valuable to customers than a small discount.

Best of all, once you’ve set this up, the program runs on its own.

RewardsWP handles all the tracking and reward delivery automatically, which means you don’t have to manually create coupon codes or figure out who referred whom. The plugin takes care of everything in the background, so you don’t have to manage it day-to-day.

Step 3: Customize the Customer-Facing Rewards Widget

Now, let’s customize how the rewards program looks to your customers. I recommend paying close attention to the customer’s side of things, because if the program is confusing or hard to use, then no one will use it.

In your WordPress dashboard, navigate to RewardsWP » Settings and click on the ‘Rewards Widget’ tab.

This page controls the floating widget that your logged-in customers will use to find and share their referral link.

Let’s walk through the settings:

• Brand Color: Use this to select a color for the widget’s title bar and button, so it matches your website’s design.
• Display: Choose how the widget button appears on your site. You can select ‘Icon with text,’ ‘Text only,’ or ‘Icon only.’
• Button Text & Position:Within this section, you are able to modify the button’s text (initially set to ‘Rewards’) and specify its screen position as either ‘Right’ or ‘Left’.

The live preview on the screen’s right-hand side reflects your changes as you implement them.

The Sharing Options are next, and can be enabled via a simple toggle:

• X (formerly Twitter):Here, you can input a pre-written message that will appear when someone shares.
• Facebook:This toggle enables sharing on Facebook, prompting users to compose their own message.
• Email:You have the ability to customize the default email ‘Subject’ and ‘Message’. The plugin supports tags such as{reward_name} and {referral_link}for the purpose of automatically inserting the correct details.

After completing the setup, select ‘Save Changes’ in the upper right to activate your widget.

Step 4: Configure Email Sender Settings

The referral program relies on two key email types, so ensure they appear as direct communications from your store.

The first is the invitation email that your customer (the Advocate) sends to their friend, which you customized in the ‘Rewards Widget’ settings.

The second automated email alerts the Advocate when their referral completes a purchase and their reward is available.

To set up the sender information for these emails, remain in theRewardsWP » Settingssection and select the ‘Emails’ tab.

This page presents a simple layout with two key settings:

• From Name:This field determines the sender name displayed in your customers’ email clients. Input your store’s name here.
• From Email:Specify the email address used to send rewards notifications. Using a professional email tied to your domain, such assupport@yourstore.com, is advisable.

After entering this information, be sure to press the ‘Save Changes’ button.

Step 5: Verify Your Refer-a-Friend Functionality

Prior to promoting your program, testing the complete process is crucial. This identifies potential problems and guarantees a seamless customer experience.

Here’s a brief checklist:

• Log in as a test customer and find the Rewards Widget. Copy your unique referral link from the widget.
• Access the provided link using a separate browser or a private browsing window to mimic the experience of a first-time visitor (‘Friend’).
• Proceed to make a sample purchase acting as the ‘Friend’, ensuring the reward (e.g., 15% discount) is correctly applied during the checkout process.
• Examine the email account of your initial test customer. Upon completion of the purchase, an automated email should arrive, confirming a successful referral and detailing your ‘Advocate’s Reward’.
• Try to use the Advocate’s reward (for example, the $10 discount coupon) during a subsequent order to verify its functionality.

After verifying the correct delivery and functionality of both rewards, you can be assured that your new customer referral program is customer-ready.

Additional Tip: Monitor Your Program’s Performance and Incentivize Key Advocates

After launching your program, RewardsWP provides straightforward tools for assessing its effectiveness.

To view an updated log of all referral actions, go toRewardsWP » Referrals within your WordPress admin area.

This page presents a comprehensive table detailing each referral, including sender, recipient, and referral status. It serves as the primary resource for tracking program success.

Consider reviewing this page consistently to pinpoint your most engaged customers – your leading advocates. A personalized thank-you or exclusive bonus coupon could reinforce these relationships and drive further referrals.

Method 2: Create a Points-Based Loyalty Program in WooCommerce (Using Loyalty Program by Advanced Coupons)

In this method, I will show you how to create a points-based loyalty program for your WooCommerce store. In this setup, customers will be rewarded for purchasing items, leaving product reviews, spending over a certain amount, and more.

I will show you how to do this using Loyalty Program by Advanced Coupons, which is the best WooCommerce coupon and loyalty program plugin. We have tested it extensively over the years, which you can learn about in our Advanced Coupons review.

Step 1: Install and Activate Loyalty Program by Advanced Coupons

First, you need to sign up for an account on the Advanced Coupons Loyalty Program website. Simply follow the instructions to enter your details and pay for the plugin.

Then, you need to install and activate the free Advanced Coupons plugin and the premium Advanced Coupons Loyalty Program plugin in your WordPress dashboard.

For more information on how to do this, see our guide on how to install a WordPress plugin.

Next, you need to head to Coupons » License and switch to the ‘Loyalty Program’ tab. Here, you need to enter your license key and the email address you used to sign up for the plugin.

You can find your license key in your Advanced Coupons account dashboard or in the email you received when you signed up.

Then, click on ‘Activate Key’ to complete the process.

Step 2: Setup the General Settings for your Loyalty Program

Next, you need to go to Coupons » Loyalty Program» SettingsInitiate the loyalty program configuration within your WordPress admin panel; this section allows you to define the parameters of your rewards system.

The ‘General’ settings panel allows you to manage core aspects related to your loyalty program’s behavior.

• Price to points earned: Specify the number of points a customer receives for each dollar they spend. While the default is one point per dollar, you can increase this ratio to offer greater rewards.
• Points to price redeemed ratio: Configure the monetary value of each point when a customer redeems them. For example, a setting of ’10’ means a customer must redeem 10 points to receive a $1 discount.
• Points name:Customize the name of your points if you prefer an alternative, similar to how Starbucks uses ‘Stars.’ In this example, ‘Awesome Points’ is used.

To illustrate this clearly, consider the following example:

• Assume that the ‘Price to points earned’ is configured such that$1 spent = 1 point
• Then set the ‘Points to price redeemed ratio’ is 10 points = $1 discount

Consequently, a customer spending $100 accumulates 100 points, redeemable for a $10 discount on a subsequent transaction.

This offers a streamlined method for implementing a 10% cashback rewards system.

Step 3: Configure Email Notifications

Then, in the ‘Emails’ section, customize email notifications for loyalty program participants, including updates on earned points and reminders to redeem them.

Advanced Coupons has default settings for the time of day, and how soon after customer inactivity these emails should be sent. You can leave them as they are or adjust them to fit your needs.

Step 4: Configure Points Earning Settings

Next, you will configure how points are calculated in your WooCommerce store. Click to open the ‘Points Earning’ tab.

For example, you may wish to give a customer fewer points if they use a coupon code as opposed to a shopper who pays outright.

Under ‘Points Calculation’, you can use the toggles to control whether discounts, tax, shipping, and fees should be included when calculating points.

You can also set the minimum amount that customers need to spend to earn points using the ‘Minimum threshold to earn points’ setting.

On the other hand, the ‘Order related points waiting period’ setting controls how long it will take for customers to receive their points after spending.

Moving down, you can control the ‘Actions that earn points.’ This allows you to reward customers for a variety of actions, including:

• Purchasing products
• Leaving a product review
• Commenting on a blog post
• Registering as a new user
• Completing their first order
• Spending over a certain amount
• Shopping during special promotional periods (like a sale)

You can simply turn on the toggles for any actions you want to reward.

For each action that you switch on, new settings will appear below.

For example, if you reward customers for registering on your site, you can also set the number of points they will earn for that action.

I recommend encouraging shoppers to spend more by awarding extra points for orders over a certain amount. This can increase the average order value, which is similar to cross-selling and upselling products in WooCommerce.

Just switch on the ‘Spending over a certain amount’ settings and then type a value into the ‘Spending over a threshold’ field.

During busy shopping periods, it’s also smart to give customers an extra reason to buy from your store.

For example, you might award extra points during Black Friday so that customers don’t want to shop with a competitor.

Just switch on the ‘Extra points during a period’ toggle.

Then, simply enter a date and time range into the ‘Extra points to earn during period’ section. You can also type in how many points customers will earn.

Step 5: Set up Referral Program Settings

Next, you can create a referral program for your store. This means that existing customers can refer their friends to your loyalty program and receive more points.

Just open the ‘Referral’ tab.

Here’s a quick overview of the settings:

• Points awarded to referrer on signup: How many points the referrer gets if someone uses their link to sign up for your loyalty program.
• Points awarded to referrer on purchase: How many points the referrer gets every time the person they referred buys something in your store.
• Referral redirect URL: Where you want to send people when they click on a referral link. For example, you might want to send them to a specific product page, the signup page for your loyalty program, and more.

You can also choose to exclude certain user roles or users from using the referral program. This could be helpful if you don’t want your team members to be eligible for the program.

Step 6: Allow Customers to Create Accounts

Your customers will need to create an account in your WooCommerce store to collect loyalty points.

You can also automatically create an account for them when they make their first purchase. This can improve the user experience and may attract additional members.

To automatically create an account for a new customer, just go to WooCommerce » Settings and click on the ‘Accounts and Privacy’ tab.

If you uncheck the ‘Allow customers to place orders without an account’ setting, customers will be unable to check out as guests.

This will encourage more people to register on your site, but may also cause more shoppers to abandon their shopping carts and give up on a purchase.

So, it’s a good idea to set up WooCommerce conversion tracking and track visitors to your WordPress website. You can then see whether this change hurts your conversion rates.

Next, you need to check the ‘Allow customers to log into an existing account during checkout’ box.

You’ll also want to make it as easy as possible for customers to create an account. So, I also recommend checking all the boxes in the ‘Account creation’ section, as you can see in the following image:

Now, WooCommerce will automatically send emails to first-time customers with information on how to access their new accounts.

Step 7: Preview Your Loyalty Program

Finally, you will want to check that your loyalty program is up and running correctly. You can do this by going to My Account» My Awesome Points.

Here, customers can see how many points they have earned and how much they are worth.

Customers simply need to enter a value in the ‘Enter Points’ field, and they will see instructions on how to redeem their points.

Best Practices for a Successful Rewards Program

Great job on getting your rewards program set up. Now that the technical side is complete, here are a few key strategies to ensure it becomes a powerful tool for growing your business.

Find the Right Balance: You want your rewards to be motivating without hurting your profits. A great way to protect your margins is to set a ‘Minimum Order Amount’ for the rewards. This ensures that the discount is only applied to purchases of a certain size, encouraging customers to spend more.

Keep It Simple: A program that is confusing won’t be used. The best strategy is to offer clear, direct value that is easy to understand in seconds. For example, “Give your friends 15% off, get a $10 coupon for yourself” is a simple and powerful offer for a refer-a-friend program.

Promote Your Program: Don’t just launch your rewards program—make sure to promote it. Mention it in your email newsletters, on your order confirmation pages, and on social media. The more your customers know about it, the more they’ll use it.

Monitor Your Results: Keep an eye on how many people are using the program. If you find that customers aren’t participating, don’t be afraid to test different reward offers to see what motivates them the most.

Frequently Asked Questions About WooCommerce Rewards Programs

Over the years, I’ve helped countless store owners set up their loyalty systems. Here are the answers to some of the most common questions I hear.

What’s the difference between a referral and a loyalty program?

A loyalty program covers the overall category of rewarding customers. This can include earning points for purchases, getting birthday rewards, or unlocking VIP tiers.

A referral program is a specific type of loyalty program that rewards customers for one specific action: referring their friends. It’s often the best place to start because it directly drives new sales.

Can I run both a loyalty and referral program at the same time?

Absolutely. The key is choosing the right plugin. The Loyalty Program by Advanced Coupons plugin is an all-in-one solution that lets you run a points-based program and a referral program at the same time from one dashboard.

However, if your only goal is to launch a simple and powerful refer-a-friend program without a points system, then RewardsWP is a better, streamlined choice.

Do I need coding skills to create a rewards program?

No, you don’t need any coding skills when using a plugin like RewardsWP. The entire setup process involves clicking through settings pages and filling out forms, just like any other WordPress plugin.

Will a rewards program slow down my website?

A well-coded plugin like RewardsWP is designed to be lightweight and won’t hurt your site speed. It only loads its scripts on relevant pages, minimizing any performance impact.

How are referral rewards handled for returned orders?

RewardsWP handles this automatically. If a referred friend’s purchase is refunded, the reward that was issued to the original customer (the Advocate) can be automatically voided to prevent misuse.

Additional Resources for WooCommerce Stores

I hope this article has helped you create a rewards program in WooCommerce. Setting up a loyalty system is one of the smartest investments you can make in your customer relationships and long-term business growth.

With RewardsWP handling the technical details, you can focus on what matters most: delivering great products and service that keep customers coming back.

You might also be interested in reading these related tutorials:

• Best WooCommerce Points and Rewards Plugins
• Best Referral Program Software for Small Business Compared
• How to Turn Your WooCommerce Customers into Affiliates
• How to Create Smart Coupons in WooCommerce
• How to Increase Average Order Value With WordPress

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