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Referral Program Benchmarks: What’s a Good Conversion Rate in 2025?

Referral Marketing
Analytics
May 8, 2025
Raúl Galera
Referral Program Benchmarks: What’s a Good Conversion Rate in 2025?

In this article

Example H2
Example H3

In this article

Example H2
Example H3

‍Last reviewed: 8 May 2025

Quick answer: The median referral conversion rate for eCommerce brands in 2025 is 3 % – 5 %. Top‑quartile programs crack 8 %+. This guide shows the numbers behind that headline—plus practical levers to beat the benchmark.

Table of Contents

  1. Why Benchmarks Matter
  2. Referral Metrics 101
  3. 2025 Conversion‑Rate Benchmarks
  4. Industry‑Specific Referral Conversion Rates
  5. Top Five Levers That Move the Needle
  6. Toolbox: Apps & Reports
  7. FAQ
  8. Takeaways

Why Benchmarks Matter

Benchmarks keep goals realistic and experiments focused. If your referral program benchmarks lag peers, you know it’s time to iterate on rewards or friction. If you’re already top‑quartile, double‑down on scaling traffic instead of tweaking copy.

Referral Metrics 101

  • Share Rate – Percentage of customers who share their referral link or code after buying. A healthy range is 5 % – 15 %.
  • Click‑Through Rate (CTR) – Percentage of shares that generate at least one visit. Typical range: 10 % – 25 %.
  • Conversion Rate (CR) – Percentage of referred visits that convert into orders. 2025 median sits at 3 % – 5 %.
  • Referral Revenue Share – Portion of total store revenue driven by referrals. Strong programs hit 10 % – 30 %.

Tip: Track all four—optimising one in isolation rarely drives sustainable revenue.

2025 Conversion‑Rate Benchmarks

Across 3,200 Shopify and WooCommerce stores (ReferralCandy dataset, Q1 2025):

  • Apparel & Accessories – median 3.2 %, top‑quartile 7.9 %.
  • Beauty & Personal Care – median 4.1 %, top‑quartile 8.5 %.
  • Health & Wellness – median 3.6 %, top‑quartile 7.2 %.
  • Food & Beverage – median 4.8 %, top‑quartile 9.1 %.
  • Electronics & Gadgets – median 2.9 %, top‑quartile 6.4 %.
  • Subscription brands (average) – typically +1.5 pp above category medians and +2 pp above top‑quartile figures.

Bookmark: Top performers almost always pair cash‑equivalent rewards with friction‑free redemption.

Want a snapshot? Paste these numbers into your BI tool and chart median vs top‑quartile for instant executive slides.

Industry‑Specific Referral Conversion Rates

Below are verified 2025 median referral conversion rates from our merchant dataset:

  • Apparel & Fashion – 5.40 %
  • Gadget & Electronics – 2.98 %
  • Beauty – 3.87 %
  • Books – 3.38 %
  • Crafts – 5.01 %
  • Food – 7.90 %
  • Health – 7.23 %
  • Home – 6.49 %
  • Software – 7.86 %
  • Sports – 6.83 %
  • Vaporizers – 8.72 %
  • Pet products – 8.58 %
  • Jewelry – 6.06 %
  • Other – 2.54 %

Use these figures to benchmark your own program. If you’re below your industry’s median, start with reward testing and program visibility to close the gap.

Top Five Levers That Move the Needle

  1. Reward attractiveness – Cash or %-off discounts often beat points by ~40 % in CR.
  2. Program visibility – Post‑purchase popups + account‑page widgets lift share rate >30 %.
  3. Social proof – Display review stars near share buttons to bump CTR 10 %–15 %.
  4. Frictionless redemption – Auto‑apply discounts shorten the purchase path; expect +1 pp CR.
  5. Smart timing – Reminder emails 7 days after delivery reactivate dormant advocates.

Toolbox: Apps & Reports

  • ReferralCandy – Built‑in A/B testing and fraud detection.
  • Refersion – Granular commission tiers by SKU or new‑customer status.
  • Klaviyo – Automate post‑purchase and reminder emails.
  • Google Looker Studio – Visualise share → click → conversion funnel with real‑time data.
  • Fraud‑Prevention Reports – Monitor IP overlap, device fingerprinting, and unusual velocity.

FAQ

What counts as a conversion?
A referred visitor completing a purchase within your attribution window (commonly 30 days).

Is 5 % CR “good”?
It’s above the 2025 median. Target 8 % to join top performers.

Do subscription products skew higher?
Yes—predictable value boosts trust, typically adding 1.5 pp – 2 pp to CR.

How long until I see improvement?
Brands notice measurable uplift within 4–6 weeks after optimising rewards and reminders.

Should rewards be cash or discount?
Cash‑equivalent rewards (gift card, PayPal credit) convert ~1 pp higher on average.

Takeaways

  • 2025 median referral conversion sits at 3 % – 5 %; push for 8 %+.
  • Reward relevance, visibility, and redemption friction are your fastest levers.
  • Use the ROI formula: even a 1 pp CR gain can boost referral revenue 30 %+. Pull your data, pick one lever, and test within the next sprint.

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Raúl Galera

Raúl Galera is the Growth Lead at ReferralCandy, where they’ve helped 30,000+ eCommerce brands drive sales through referrals and word-of-mouth marketing. Over the past 8+ years, Raúl has worked hands-on with DTC merchants of all sizes (from scrappy Shopify startups to household names) helping them turn happy customers into revenue-driving advocates. Raúl’s been featured on dozens of top eCommerce podcasts, contributed to leading industry publications, and regularly speaks about customer acquisition, retention, and brand growth at industry events.

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Resources
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Case Studies
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The Ultimate Referral Playbook
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Latest from blog

Referral Program Benchmarks: What’s a Good Conversion Rate in 2025?

Read more

How to Start an Affiliate Program on Shopify (Step‑by‑Step Guide for 2025)

Read more

Best Shopify Affiliate Tracking Apps for Influencers & Referrals in 2025

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Referral Program Benchmarks: What’s a Good Conversion Rate in 2025?

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