Kandiantong: Referrals pay only on a new member's first order
Referral uses acquaintance and incentives to acquire customers at low cost. Existing users have used the product and trust the brand, so they are more willing to recommend. New users convert at a higher rate than paid ads because an acquaintance stands behind the recommendation. A typical "invite and get a gift": an existing user shares an exclusive link or poster, the new user registers through the link and completes a first order, and each side receives a coupon or cash back.
Principles of reward design
Referral means using incentives so existing users actively recommend and bring in new users. It is an important way for private domain to acquire customers at low cost. Design points: the reward has to attract both sides; the share path has to be simple, with one tap to generate a poster and copy a link; tiered rewards can be set so that more invitations bring a richer reward, which raises the fission coefficient. Referral is an important way to keep adding people to the private-domain traffic pool.
Two-way incentives: the inviter receives a reward, including coupons, points, and cash back; the invitee receives newcomer benefits, including an instant discount on the first order and a spend-and-save coupon. Both sides have a reason to take part, and the conversion rate is higher. The reward needs to be attractive, but it should not exceed a reasonable share of user LTV. It can be issued after the first order is completed, which avoids people gaming the offer. Tiered rewards can be one level for inviting 1 person and another for inviting 5, which encourages high-value users to keep promoting. Against cheating, identify multiple accounts on the same device, the same mobile number, or the same payment account. A new user counts toward the inviter's reward only after a valid first order, for example one that reaches a set amount.
Share path and conversion
The share entry should be obvious. It can sit on the order-complete page, in the profile, and on the campaign page. Generate an exclusive poster in one tap. The poster contains a QR code and an invitation code, which lowers the effort. Share-copy templates should be easy to copy and attractive. The new user's landing page needs to say quickly that registering brings a benefit, which reduces drop-off. Also track the conversion funnel of the invitation link and improve each step.
Use in a private-domain mall
In a cold start, referral can quickly gather seed users and fill the traffic pool. During a major promotion, referral amplifies the campaign. For highly sticky users and super users, design an exclusive invitation reward. Set tiered rewards so users keep inviting.
Source: https://www.kandiantong.com/support/concept/referral-program.html