How to Create a WordPress Referral Program?

A WordPress Referral Program isn’t included by default in your WordPress or WooCommerce installation. You’ll need to either:

• Install a dedicated referral plugin
• Use a third-party referral platform
• Build a custom solution

If you’re looking to avoid additional plugins or platforms, you could start with a simple manual referral system using discount codes, but this would require manual tracking and wouldn’t be automated.

To make your referral process easy, let us see how to create a referral program in WordPress using a plugin- WPLoyalty. Let’s get started.

What are the Benefits of creating a WordPress referral program?

Here are several key benefits of creating a referral program in WordPress:

• Lower Customer Acquisition Costs

Instead of spending heavily on traditional advertising, you only pay rewards when successful referrals occur. This performance-based model ensures your marketing budget is spent efficiently.

• Increased Customer Trust

When recommendations come from friends or family, potential customers are more likely to trust your brand. Personal recommendations carry more weight than traditional advertising methods.

• Higher Conversion Rates

Referred customers typically convert better since they come with a built-in level of trust through their connection to existing customers. They’re pre-qualified leads who are more likely to make purchases.

• Drive Customer Acquisition and Retention

Your existing customers bring in new ones through trusted referrals. By turning customers into advocates, they develop a stronger connection to your business, leading to higher retention and continued referrals.

• Valuable Customer Data

Referral programs provide insights into customer behavior and sharing patterns. You can track which products generate the most referrals and understand what motivates your customers to share.

• Scalable Growth

As your customer base grows, your potential referral network expands automatically. Each newly acquired customer becomes a potential brand advocate, creating a snowball effect for business growth.

When Should You Consider Implementing a Referral Program in Your WordPress Site?

Referral programs are highly effective for businesses under the following conditions:

• Your products have good margins (to afford referral rewards).
• You have repeat customers (they’re more likely to refer).
• Your average order value is high enough to justify referral bonuses.
• You already have satisfied customers who like your products.

However, before implementing one, make sure you:

• Have solid product quality and customer service in place.
• Have streamlined your basic store operations.
• Have enough regular orders to make the program worthwhile.

Related reading: Discover real-world referral program examples and strategies to grow your customer base effectively.

How to Create a Referral Program in WordPress?

You can create a referral program in WordPress using “WPLoyalty” easily.

• Install and activate the “WPLoyalty” plugin.
• Navigate to your WordPress dashboard -> WPLoyalty -> Rewards -> Create a reward.
• Select the referral reward type and save it.
• Set up a referral campaign with rewards for both the referrer and referee.
• Activate the referral program campaign.

Now let us look at the step by step process from installation of the plugin to setting up the referral campaign to your customers.

STEP 1: Install and Activate the “WPLoyalty” Plugin

• Download “WPLoyalty” plugin
• Navigate to your WordPress dashboard
• Click on “Plugins” ->”Add New Plugin”
• Click the “Upload Plugin” option
• Choose the WPLoyalty plugin zip file from your computer
• Click “Install Now” to begin the installation

Note: You can also refer to the documentation for a step-by-step guide on installing and activating the WPLoyalty plugin.

STEP 2: Create Referral Rewards (Percentage Discount)

Once done with the installation, let us set up referral rewards for the referrers and referees.

Note: WPLoyalty provides five reward types—Loyalty Points, Fixed Discount, Percentage Discount, Free Product, and Free Shipping. You can select any of these as your preferred reward type.

In this example, we’ll show you a 10% percentage discount for both referrers and referees.

• Go to your WordPress dashboard -> WPLoyalty -> Rewards -> Create a new reward.
• Choose the “Percentage Discount” reward type.

• Enter the reward title and description.
• Select “Reward as coupon immediately” under usage options.
• Set the discount value (e.g., 10%).
• Enter the display name for the coupon (e.g., “10% discount for successful referral”).
• Set the coupon expiration or leave it as “Unlimited.”
• Apply any preferred conditions, such as cart subtotal or product-specific rules.
• Click “Save & Close” to finalize the reward setup.

Here is the screenshot of the example configuration:

The percentage discount of 10% has been configured as the referral reward. Next, we’ll create a referral campaign and assign this reward to both existing and new customers.

STEP 3: Create a Referral Campaign

• Go to your WordPress dashboard -> WPLoyalty -> Campaigns -> Create New Campaign.
• Select “Referral Campaign.“

• Enter the campaign name and description.
• For existing customers:
  • Choose the reward type as “Coupon reward.”
  • Select the “10% Percentage Discount” reward created earlier.
• For new customers (referred persons):
  • Choose the reward type as “Coupon reward.”
  • Select the “10% Percentage Discount” reward created earlier.
• Set the campaign start and end dates (optional).
• Click “Save & Close” to activate the referral campaign.

Here is the screenshot of the example configuration:

Enable the campaign. With this setup, both referrers and referees will receive a 10% discount for successful referrals.

STEP 4: Display Your Referral Program

WPLoyalty offers three ways for your existing customers to display your referral program:

• Via the My Account -> Points & Rewards section
• Through a chat-like Launcher widget
• On a dedicated Loyalty Rewards page

Customers can explore their unique referral link, earning opportunities, and reward options through any of these methods.

1. In My Account -> Points & Rewards

Existing customers can log in to their account page (My Account) and navigate to the “Points and Rewards” section.

2. Launcher Widget

The Launcher Widget enables your customers to easily view the rewards they’ve earned and explore different ways to redeem them.

By clicking on the ‘My Rewards’ button located at the bottom-right corner of the page, customers can access and discover your referral program.

3. Loyalty Rewards Page

Create a dedicated loyalty rewards page to showcase your referral program.

Conclusion

Creating a WordPress Referral Program enhances your website’s growth potential through word-of-mouth marketing. By following the steps mentioned above, you can easily set up and manage an effective referral system that rewards both existing and new customers.

Remember to regularly monitor your referral program’s performance, adjust reward structures as needed, and maintain clear communication with participants.

Further Reading:

• 5 Best WordPress Referral Plugins For 2025
• How to Set Up a Woocommerce Referral Program?
• 6 Types Of Loyalty Programs
• Loyalty Program Management: 10 Best Practices + Software
• B2B Loyalty Programs: Complete Guide
• 7 Top Ecommerce Trends To Watch Out
• 8 Proven Customer Strategy Examples Every Brand Should Know
• How to Build a Reward Point System for Customers