The most expensive phrase in e-commerce is, "Let's bring in more traffic." Really? If CAC is climbing and repeat isn't moving, you're pouring gasoline into a leaky tank. Want to grow CLV without burning margin? Spin the "Give & Get" recommendation and make customer acquisition and retention channels in one. Elegantly. Measurably. And with cost control.

What it will be about: why bet on referral right now, how to set it up (rewards, rules, security), what to measure and how to incorporate it into the emailing and VIP program to turn one-offs into ambassadors.

By the way - if you're on Shoptet, Ellity can do this out of the box and it talks nicely with your mailing. I'm not pushing, just recommending.

Why referral now

1. CAC hurts. People are clicking less, paid media is getting more expensive. Referral leverages the social capital of your satisfied customers. Every "refer and get" is cheaper than a cold lead. And it's not just acquisition: a referred customer usually has a shorter path to first purchase and higher trust - hence better conversion. In practice, Ellity carries a +26% conversion rate for selected e-tailers; on aggregate numbers, we see a 12% turnover from points redemption - i.e. customers are coming back and spending with benefits.
2. Retention needs a story, not a discount. You give a percentage, and in a week it's the new normal. Referrals, on the other hand, create a "reason to talk about the brand" and a mechanic you power with points instead of across-the-board discounts. At Ellity, a percentage of the order automatically converts to points based on your coefficient - the margin stays under control.
3. Technically easy, commercially smart to scale. On Shoptet, you turn on the module and off you go: link in customer profile, sharing via social networks, email, messenger. You set rewards by order of purchase (1st/2nd/3rd) or by time (first month/year/lifetime). Rules are applied sequentially - you have full control over incentives and costs.

What a healthy "Give & Get" looks like

Basic framework:

• Give: The new customer receives a clear, "usable right away" benefit (e.g. points or discount equivalent) through the referral.
• Get it: The referrer gets a reward after completing the friend's first order.
  Technically, Ellity handles this automatically and fairly - no manual verification, notifications happen in the emailing.

Design rewards according to the goal:

• I want first orders fast: Set a higher bonus on the 1st purchase, lower on the 2nd and 3rd - this creates momentum while decreasing cost.
• I want a loyal relationship: spread the bonuses over time (e.g. first month higher, then standard) to get referrals to buy again. In Ellity, you switch the strategy with one click.

Percentages → points without margin pain:
Do you have a margin of 35% and want to cut 5% max from it? Set the point coefficient so that the percentage reward is converted to points within the limit. Ellity has a calculator to adjust by AOV and margin - kick in, output recommendations, apply in admin. Done.

Sequence rules (small big spell):
Define the order in which the incentives are evaluated - from the most stringent to the most general. Example: first you exclude low-margin categories, then you apply a cap to the reward, only then you convert percentages to points. The result: predictable costs, no "discount burning".

Where the customer can find his link:
In the profile on the e-shop, in one click he shares via social networks, email, SMS, WhatsApp or Messenger. There is no point in hindering sharing - make it convenient and visible.

E-mailing: the engine that spins the recommendation wheel

A referral without e-mailing is like a Ferrari without gasoline. Link Ellity to Ecomail/SmartEmailing/LeadHub/Boldem and send clever triggers: joining the program, crediting/extracting/expiring points, "a friend bought - here's your reward", or the nudge "invite two friends, get an extra bonus". Everything runs through events, which e-mailing can read and automate.

Tip: In each newsletter, show the current points status and a ready referral link. This little UI lifts click-throughs and returns - the customer has a reason to come back "right now".

VIP as an additional floor: turn referrers into ambassadors

When a referral spins up an acquisition, switch some of the energy to the VIP program. Not across-the-board discounts, but tiers with clear rules: turnover, number of purchases, points accumulated. Reward with better service, a gift, double points, an invitation to a pre-sale. The goal? Raise cart value and keep "ambassadors" active. In Ellity, you set levels, periods (lifetime/years/rolling months) and communication on an ongoing basis - the customer knows how much they're missing for the next level.

Measurement, without which it will not work

KPI for referral:

• Order share from referrals, conversion of referred visits, CAC from referral vs. paid channels.
• Referrer activation (how many people share and how many bring at least 1 purchase).
• LTV of recommended vs. non-recommended (combine with VIP).

Ellity has loyalty program and integration reports that put this together. In terms of numbers, we already have over CZK 3 billion in program sales, CZK 360 million in program sales. CZK with redemptions and a 12% redemption revenue share - i.e. a real impact on repeat. We are trusted by 500+ e-shops on Shoptet.

Safety and prevention of "gaming"

• Cap on reward and rules for categories/products (omit low-margin or subsidized).
• Minimum basket value for redemption and delay interval for reward crediting - return protection.
• Sequential rules + exclusion of certain customer groups (B2B, internal). In Ellity, these are clickable options, not a development project.

Small referral economy (no migraine)

• Reward cost = (percentage or points) × AOV × (your point coefficient).
• Yield = margin × AOV for new and repeat purchases.
• ROI = (Revenue - Cost) / Cost.

When you keep the cost of the reward within e.g. 5% of gross margin while encouraging second and third purchases (time escalation of rewards), the referral ceases to be a discount and becomes a CLV accelerator. Converting percentages to points + cap + rules = cost control without stifling incentives. In Ellity you set this up via the calculator and rules in the admin.

Check-list launch in 10 days

1. Mechanics: choose Give & Get, reward structure (1st/2nd/3rd purchase or time), caps, category exclusion.
2. E-mailing: prepare 5 slots - Welcome, "Your referral link", "Friend has purchased", "Points expiration approaching", "Second order bonus".
3. Front-end: link in profile, banners, mini-widget in cart "Get bonus for referral".
4. VIP: define thresholds and benefits so recommenders have an "up" goal.
5. Measurement: dashboard referral KPI + A/B rewards test. (Ellity has reports and connections.)

Conclusion: give people a reason to talk about you. And give yourself a reason to count.

Referral is the purest form of marketing: the customer guarantees his trust. Your job is not to kill it with a discount, but to feed the system with points, rules and communication that will turn the first purchase into a second, the second into a third... and the referrer into an ambassador. When you add the VIP tier and email triggers, you're looking at steady, cheaply scalable growth.

Want your next new customer to cost less than your last campaign - and keep them coming back? Turn on Ellity Referral on your Shoptet: set up Give & Get, convert percentages to points, add a cap, and start the slots. In 10 days, you'll see your first referrals in your reports. Let's plot it on your numbers - today.

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