What Is the Difference Between Immediate Reward and Reward on Signup?
When setting up your referral program, you need to choose a Friend Reward Strategy — this controls how and when the referred friend receives their reward.
There are two options:
Option 1: Immediate (Default)
How it works: The referred friend receives their coupon as soon as they submit their email address.
✅ No Shopify account required
✅ The coupon is unrestricted — it can be used by anyone
✅ Lower friction — the friend gets their reward right away
⚠️ Less secure — the coupon could technically be shared or used by someone else
Best for: Stores that want to maximise referral conversion with a frictionless experience.
Option 2: Reward on Signup
How it works: The referred friend must provide their first name, last name, and email (plus optional marketing consent). A Shopify customer account is created for them, and the coupon is locked to that account — only they can use it.
✅ More secure — the coupon is tied to a verified identity
✅ Grows your customer account base
✅ Optional marketing consent capture
⚠️ Higher friction — requires the friend to complete more steps
Best for: Stores that want verified referrals and are comfortable with a slightly more involved sign-up flow for new customers.
Which Should I Choose?
If your priority is ease and volume of referrals, go with Immediate. If your priority is data quality and coupon security, go with Reward on Signup.