[Kwerks - #5] Using self-interested altruism for referral programs
Instead of using the regular phrases like “Invite your friend and get 20% off”...
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Metrics Impacted: Referrals | Conversions
Type: B2C and B2B
Previous tip: People prefer to receive a thankyou mail over a cash reward (All tips here)
Recommendation:
Instead of using the regular phrases like “Invite your friend and get 20% off” or “Invite a friend to get 20% off, they will also get 20% off”, use ad copy like “Give your friend a 20% off, and get the same benefit”.
The expected effect:
We are much more altruistic than we think we are. That’s why we refer a product to our friends even though the brand does not give us money to do it.
The best time to target your audience with referral programs is when they have just finished consuming your product or received it. Because these kind of campaigns become less effective the more time passes.
Why it works:
The concept of self interested altruism works best within our close circle. It means “you are in my social circle. So if you are happy, then it will make me happy”.
So introducing a financial reward in between makes people less likely to get a good feeling when they refer the product even if their friend enjoys it.
How can you implement this?
You can try a A/B test where the subject or CTA for A mails shall be the standard ones you send out. The next set of mails can contain the alternate copy mentioned in above.
Test out different offers to see which one works for your industry.