Entice referrals through giveaways
Overview
Business Outcome
Referral Rates Increase the number of user referrals and new user signups generated through the referral program. Higher referral rates can lead to cost-effective user acquisition and organic growth for the platform.
Behavioral Outcome
Increased Engagement
Participants are likely to exhibit increased engagement with the referral program as they actively seek to refer others in hopes of winning a prize. The opportunity to participate in a lottery adds an element of excitement and motivation, encouraging participants to actively participate in the referral process.
The Behavioral Science
Reciprocity Effect
The offer leverages reciprocity by asking users to invite friends, capitalizes on social proof by suggesting that others are participating and provides a strong incentive in the form of a desirable prize.
How It Works
Reciprocity
Reciprocity is the principle of human behavior where individuals feel obligated to return a favor after receiving one. In this case, by inviting a friend to participate in the offer, the person feels a sense of indebtedness to the company offering the chance to win AirPods Max.
Gamification
The use of a lottery-based reward system introduces an element of gamification, which taps into individuals' natural inclination towards play, competition, and reward-seeking behavior. By turning the referral process into a game of chance, individuals are motivated to participate in the hopes of winning a prize, making the process more engaging and enjoyable.
How It Might Backfire
Lack of Genuine Referrals
Participants may refer others solely for the chance to win the prize, rather than because they genuinely believe in or value the product or service being referred. This can lead to an influx of low-quality referrals or referrals from individuals who have no genuine interest in the offering, ultimately diluting the effectiveness of the referral program.
Disappointment and Disengagement
Participants who do not win the prize in the lottery may experience disappointment or disillusionment, especially if they made significant efforts to refer others.
How To Test
A/B Tests
In condition A, a lottery reward incentive for referrals, and in condition B, the incentive is absent.
Compare the referral rate and analyze the retention rate of referred customers compared to those acquired through other channels.
Frequently Asked Questions
Increase user motivation through the hero's journey
Fabulous uses the hero's journey framework to guide users through the app experience, relying on intrinsic motivation to keep users engaged and progressing through their personal growth journeys.
Increase onboarding calls by making it the default option
Leantime increases the number of users who book an onboarding call by making it the default option in the onboarding process. Users can still skip the call if they prefer, but framing it as a standard part of onboarding encourages more users to participate.