Creating a referral program for an iOS or Android app is not something that many have done or even thought about before. Knowing the product, understanding the users of the app, and having the right toolset is the key to designing a successful referral program.
This guide outlines different aspects of what to think about when designing a referral program, and provides tips on what rewards to offer.
Creating a referral program starts with assessing the product’s features and functionality. Identify the key benefits that users value and how they can be leveraged to incentivize referrals. Consider the user journey and how the referral program can enhance the user experience.
A referral program is typically a mutually beneficial reward system that encourages users to invite their friends and family to join the app. It is designed to create a positive feedback loop where users are rewarded for referring others, and those who are referred are also rewarded for joining the app. It is important to carefully design the rewards and incentives to ensure that they are aligned with the product’s goals and values.
Designing a referral program requires looking at separate categories of users by their journey throughout their interaction with the app. We highlight four of them, starting from simpler to more complex based on the complexity of the rewards that they can receive.
Users that arrive at the app from a referral and are typically non-premium users at the start. They may be attracted to the rewards offered and want to learn more about the app and how it can benefit them. It is a good idea to include referral in their onboarding process, and provide a clear picture of their rewards for being invited via a referral.
Coming up with rewards for this category of users is the easiest part of the referral program design process. Because they are new users, there are many options available. Below are some examples:
Users that are already using the app and are not premium users. They may be willing to first refer others to earn the rewards that give them a better premium plan or other benefits.
Rewards for these users are similar to the rewards for new users, because they are still users without a premium plan.
Further customization can be applied to the rewards for these users, for example you can offer a reward after inviting 3 users, or after an invited user becomes a premium user. Additionally, a multi-step referral incentive can be offered, where users can earn a free month for each invited user.
Users that are already using the app and are premium users with a subscription. They may be willing to refer others to earn the rewards that give them a better premium plan or other benefits.
Rewards for these users are becoming trickier, as the available options depend on the user’s subscription plan.
Further customization can be applied to the rewards for these users too, for example you can offer a reward after inviting 3 users, or after an invited user becomes a premium user.
Usually there are not many reward options for users who already have lifetime access to the app. But at the same time, they may be the best users to invite others, since they are the most attached to the app. Asking them to invite others without any obvious reward is still a good idea, at least to consider.
Users engaged in referrals love seeing their statistics and rewards. Displaying the number of referrals they made and rewards earned is a great way to involve them in the process.
Referral programs can be a powerful tool for increasing user acquisition and retention.
Even though it might sound complicated, you don’t have to design a complex system to begin with. Start with a simple referral program rewarding new users. Offer a longer free trial or a discount and iterate from there.
All examples of rewards listed above are supported in WinWinKit. Read more about referrals and rewards in our documentation. There will be separate guides for setting up different rewards, and we will link it from here when ready.