What Is The Result?
Reducing customer churn
A personalized rewards program gives customers a more emotional connection to their service and increases their interest in your joint success.
Provide special in-app offers that are interesting to your customers, and make their lives easier by making them available online, rather than forcing them to visit retail stores or call a call center.
A reward-centric approach can attract a new set of experience-based customers, as they want to be part of an innovative and exciting world of digital services.
Rewards and Referral in Action
Here are a couple of the most inspiring referral programs in action. Some of them offered free money, and others offered subscriptions to their services.
1. Dropbox’s famous referral program gives you and your friends 500 MB of additional free storage space, up to 16 GB total. Dropbox’s customer acquisition cost plunged from about $300 per customer (for a $99 per year subscription fee) to $0 per customer with the referral program.
2. PayPal’s refer-a-friend program helped them achieve 7% to 10% monthly growth, increasing their user base to over 100 million members in a few years.
3. Uber’s referral program focuses on acquiring both new riders and new drivers. Give your friends the gift of a discounted first ride and get a discount on your next ride. Refer a qualified new driver to Uber and get cash credit. Their referral program brought in fresh customers and drivers quickly, filling out their entire business model and providing critical mass to quickly launch in new cities.
LotusFlare Rewards and Referral
LotusFlare has built an industry-leading Rewards & Referral program that drives customer engagement and retention for enterprises.
The Rewards & Referral program includes:
Tier based rewards
High levels of consumer engagement can be achieved through a tiered program, rewarding consumers for their loyalty. Customers gain points through their in-app activity and are rewarded when reaching certain point thresholds. For instance, when a customer earns enough points to qualify for the silver tier, they are rewarded with points, discounts, and instant rewards.
Activity Based Rewards
Customers earn points by completing tasks within the app such as renewing subscriptions, connecting their Facebook profile, and referring their contacts. More points or better incentives can be offered for more desirable user activities.
Daily Rewards & Gamification
Implementing a daily reward for opening the app incentivizes customers to engage more frequently. Using a “spin wheel” with various rewards available will excite customers and promote daily interaction.
Internet companies including PayPal, Dropbox and Uber have successfully deployed referral programs to drive exponential user growth. Turn your power users into your brand ambassadors. When executed well it is the ultimate low cost customer acquisition campaign.
In the digital age rewards and referral programs are an essential tool for Telecom Operators and enterprises to create differentiated and innovative product experiences for their customers that drive loyalty and retention metrics.
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