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Should referrals reward signup or first purchase?

Choose New customer signs up when you want referrals to feel instant. Choose New customer makes their first purchase when you want to reward referrals only after the referred customer buys.

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Written by Sergey Rebbe

Choose New customer signs up when you want referrals to feel instant. Choose New customer makes their first purchase when you want to reward referrals only after the referred customer buys.

Glow also includes two repeat-order referral options. Use those only when you intentionally want a referred customer's future orders to keep awarding referral points.

The short version

Referral timing

Best for

Main tradeoff

New customer signs up

Growing your customer list and giving quick referral credit.

Points can be awarded before the new customer places an order.

New customer makes their first purchase

Controlling reward cost by waiting for a purchase.

Customers wait longer to see referral credit.

Award a flat amount on every order

A simple repeat-order referral program.

Referral points can keep adding up on every qualifying order.

Award a variable amount on every order based on order total

A points-based affiliate-style program tied to order value.

This needs careful testing so the point cost matches your margins.

Before you change the setting

Changing the referral timing affects future referral processing. It does not automatically replay old referrals or rebuild past point activity.

If you are already running a referral campaign, make the change during a quiet period and test the full customer path before announcing it.

Where to change referral timing

In Glow, go to Rewards > Referral Program.

Use Program Status to enable or disable the referral program.

Use Issue rewards when... to choose when Glow should award referral rewards.

Glow referral program setup showing signup referral timing and referral point fields

Option 1: New customer signs up

Use New customer signs up when you want referral credit to happen as soon as Glow can connect the new customer to a referral code.

This is usually best when:

  • Your goal is to grow your member list.

  • You want the referring customer to see points quickly.

  • You are comfortable awarding referral points before the new customer buys.

With this option, Glow can award points to:

  • The existing member who referred the new customer.

  • The new member who joined through the referral.

The new member's referral points are in addition to any normal signup points you have enabled.

Option 2: New customer makes their first purchase

Use New customer makes their first purchase when you want to wait until the referred customer places a qualifying first order.

This is usually best when:

  • You want referral rewards tied to purchase behavior.

  • You want more control over reward cost.

  • You are willing for referral credit to appear later.

When this option is selected, Glow can also show purchase-specific settings, including whether to award referral points when the referred order earns 0 order points and whether to award the existing member a bonus discount code.

Glow referral program setup showing first-purchase referral timing and purchase-only referral settings

If you use first-purchase referrals, test with a brand-new customer. An existing customer who already has order history is not a clean first-purchase test.

Repeat-order referral options

Glow also includes repeat-order referral timing:

  • Award a flat amount on every order gives the configured point amounts on each qualifying order from the referred customer.

  • Award a variable amount on every order based on order total calculates referral points from the referred customer's order total.

Use these only when repeat referral rewards are part of your program design. They can be powerful, but they also create ongoing point cost.

How to choose

Choose signup if you want the simplest customer experience and do not mind rewarding a referral before the new customer buys.

Choose first purchase if you want to protect your reward budget and only reward referrals that lead to an order.

Choose a repeat-order option only if your program is meant to keep rewarding the referrer after the first order.

How to test the setting

For signup referrals:

  1. Open the loyalty widget as an existing member and copy their referral link.

  2. Use that link in a clean browser or test customer session.

  3. Create a new customer account or trigger the customer signup path your store uses.

  4. Check Analytics > Referral Stats and Analytics > points Activity.

For first-purchase referrals:

  1. Open the loyalty widget as an existing member and copy their referral link.

  2. Use that link as a new test customer.

  3. Place the new customer's first qualifying order.

  4. Wait for Glow to process the Shopify order.

  5. Check Analytics > Referral Stats and Analytics > points Activity.

Common issues

The referral appears, but no points were awarded

Check whether the program is set to New customer makes their first purchase. If so, the referred customer may still need to place their qualifying first order.

Also check that the existing-member and new-member referral point values are greater than 0.

First-purchase referral points did not appear after an order

Use a new test customer with no previous orders.

Then check whether the order earned order points. If order rules, disabled order points, or other settings can make the order earn 0 points, test carefully before relying on the purchase-based flow.

The bonus discount code did not appear

The bonus discount-code option is tied to first-purchase referrals. It is separate from the normal referral point values.

Also make sure the selected reward is enabled and is not a flexible reward.

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