enGaging project, slides from Gamification and Growth hacking academy training in Ancona (Italy) www.engaging-project.eu Slide set: 2.

1. GH techniques
Referrals
This work is licensed under a Creative Commons
Attribution-NonCommercial-ShareAlike 4.0 International License.
Dr. Tomislav Rozman, BICERO Ltd.
for: enGaging project, www.engaging-project.eu

2. Referral is the king
(Sounds familiar ?)

3. Some companies don’t like marketing…
They say: ’’ Our product / service markets itself by word-of-mouth‘’
Or: Marketing / advertisement is a sign your product is not good.
Do you know
any examples
from your local
environment?

4. What is the best marketing technique which works
every single time ?
A satisfied customer who refers you to another customer!
A customer == your best marketeer
If you run out of them … then read on.

5. Example referral programs

6. Example #1: Dropbox
1. Dropbox’s famous referral program gives you and your friends 500MB additional
free storage space, up to 16GB
Dropbox’s referral program results:
• Permanently increased sign-ups by 60%
• In Sept 2008 the service had 100,000 registered users
• In Jan 2010 (15 mos.) the service had 4,000,000
• 35% of daily sign-ups are via the referral program
Source: http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers

7. Example #2: Paypal
2. PayPal’s referral program literally gave users (and their friends) cash – something
payment platforms can get away with
Referrals helped PayPal achieve 7 to 10% daily growth, catapulting their user base to over
100 million members.
Source: http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers

8. Example #3: Airbnb
3. Airbnb’s referral program – the 2nd iteration was even more successful than the
1st!
“Airbnb created a referral program […] launched in a private beta to 2,161
existing members and brought in 2,107 new members, nearly achieving a
viral growth factor of 1.” [Source]
Source: http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers

9. Example #4: Uber
4. Uber’s referral program lets you give your friends the gift of discounted first rides
Source: http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers

10. … and 42 more on:
http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Markete
rs
(yes, I’m referring :)

11. Referral management process

12. WOM management process
Manage customer recommendations:
5. Enjoy the
growth!
4. IF not
successful
GOTO 1
ELSE GOTO
5
3. Measure
the effect
2. Establish
rewarding
system for
customer
recommendati
ons
1. Gather
customer
recommendati
ons
systematically

13. Example of social sharing + reward
Source: http://www.referralcandy.com/blog/true-and-co-referral-program/

14. How does it work?

15. How does WOM work?

16. WOM
In which
situations you are
a promoter,
passive or
detractor?

17. WOM / referral hacks

18. Simple hack related to WOM
Simply ask about it!
Example: Course online
survey built with Google forms:

19. 4 key locations to install referral widgets* to
increase user participation
a) Homepage – Trigger an overlay on your homepage or link to your
stand-alone referral page
b) User Account Pages – Give logged in customers the ability to share from
their account page
c) Post Purchase Page – Make sure you auto-pop that widget and you’ll get
10x more sharing
d) Stand-alone Referral Page – Create a landing page (i.e.
yoursite.com/refer) and embed a widget on that page.
… blogs, emails, ANY WEB REAL ESTATE!
*referral widget = like/share/invite a friend/recommend button or link
Source: https://www.friendbuy.com/blog/slides-referral-marketing-crash-course

20. 5 ways to promote your referral landing page to
get results now:
1. Send a dedicated blast to your email list that links to your stand- alone referral
page.
2. Post the link to your Facebook fans.
3. Post to Twitter followers.
4. Post to LinkedIn followers.
5. Include a banner in your email templates (order confirmation, newsletters, etc.)
that links to your referral landing page*.

21. When will people share &
recommend ?

22. NPS (Net Promoter Score)
If your organization’s NPS is higher than those of your competitors, you will likely
outperform the market, and managing your organization to improve NPS will also
improve your business performance.
How likely is it that you would recommend [brand] to a friend or colleague?
Key
question

23. How do you calculate NPS?
Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others,
fueling growth.
Passives (score 7-8) are satisfied but unenthusiastic customers who are vulnerable to
competitive offerings.
Detractors (score 0-6) are unhappy customers who can damage your brand and
impede growth through negative word-of-mouth.
Subtracting the percentage of Detractors from the percentage of Promoters
yields the Net Promoter Score, which can range from a low of -100 (if every
customer is a Detractor) to a high of 100 (if every customer is a Promoter).

24. The downside of NPS
● Some say that Net promoter score doesn’t have a high correlation with word of
mouth or growth rates???

25. Any software related to referrals?
http://www.referralcandy.com/

26. Sharing optimization

27. How do you optimize the sharing rate?
• A/B testing
• Example:
• Here are a few Calls to Action:
a) “Get 50% Off a XZY product!”
b) “Get Half Off a XZY product!”
c) “Get $10 for Free!”
Can you guess which Call to Action won?
More -> module ‘’A/B testing’’

28. How do you measure your
referral program?

29. Key metrics for your referral program
Key metrics:
• Sharing Rate – Percentage of people who share when presented with a widget
• Referral Visits – Clicks on shared content
• Referral Conversion Rate – Percentage of referred visitors who convert
Typical: 7%,
with
optimization,
50% *
*Source: T. Mariotti, https://www.friendbuy.com/blog/slides-referral-marketing-crash-course/

30. Carrots

31. What kind of ‘carrots’ you can use?
• Store credit
• Cash back
• Coupons
• Loyalty points
• Gift cards
• Discounts
• Access to special features (SAAS
and web-based apps)
• Free month (subscriptions)
• Donation to charitable cause
• Special events (in-store or
brick & mortar)
• Premiums (physical items like
a tote bag)
• Extra entries for sweeps and
contests
Dropbox:
additional
space
Retail
stores
Aren’t
we full
of it?
*Source: T. Mariotti, https://www.friendbuy.com/blog/slides-referral-marketing-crash-course/

32. Now put these things to
action!

33. Assignment instructions
1. Review the examples of the existing referral programmes:
http://app.tuteboard.com/tute/LeahBerwald/Creating-Referral-Programs-For-Marketers
2. Which referral program could be used for your company? Explain.
3. Prepare a draft design of your referral program:
What will you offer to reward the referees?
How will you gather WOM?
Where will you include it in your web page?
How would you measure it?
4. How would you include NPS (Net Promoter Score) in your CRM process ?

34. Thanks for your
attention!

35. Are you interested in this project (enGAGING)?
1. Visit: www.engaging-project.eu or FB: https://www.facebook.com/EnGagingProject or Twitter
https://twitter.com/engagingproject
2. Subscribe to the newsletter on the project web page (now we have your
contact and we’ll spam you. Just kidding.)
3. Occasionally receive project newsletters (pretty boring, right?)
4. Wait for the invitation for self-assessment test (a little better, right?)
5. Wait for the online course about Gamification and Growth hacking (awesome,
right?)
6. Become gamifier and growth-hacker (mind blowing, right?)
yes
? no
Continue
with
pointless
browsing :)

36. About the author (Tomislav Rozman)
E-mail: tomislav.rozman@bicero.com
Web: www.bicero.com
LinkedIn: http://si.linkedin.com/in/tomislavrozman/
Twitter: https://twitter.com/tomirozman
FB: https://www.facebook.com/bicero
Slideshare: http://www.slideshare.net/tomirozman
Researchgate: https://www.researchgate.net/profile/Tomislav_Rozman
Google+: https://plus.google.com/u/0/105445660420799290456
Looking for a
trainer?
Then contact
the author -->