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Referral program


Situation

Referral program or Invite Friends, as we call it, is one of the most promising Growth projects at Vinted.  Right from the first iteration, it generated constant quality organic traffic and now we are looking for ways to increase it.

 

Initial experiment

It started as an experiment, which goal was to understand the effect of different incentives to Invite Friends as well as to understand the potential impact of such program. So we randomly selected 3 groups of active members and send them emails, describing Invite Friends program and asking them to be the first to try it. Different incentives were as following:

  • Double side voucher program - both referrer and referee got a voucher.
  • One sided - just a friend who's been invited received a voucher.
  • No benefit - no one received a voucher.

 Results: Members were 2 times more likely to participate in double side voucher program, though one sided voucher program showed high enough results to continue with it further. Results from no benefit program were very insignificant.

 

First iteration and future steps

Next step was to implement Invite Friends in all the platforms. The challenge was to balance the communication about the program, so it doesn't become one time promotion campaign.  Luckily, Invite Friends generated continuous flow of new members. We had several hypothesis on what can be done better:

  • Invite Friends is not visible enough inside the product, so members do not know or remember about it. So we added extra communication points inside the product.
    Results: More then doubled the usage of the feature. The lesson here was to communicate clearly the main benefit why members should care about it.
  • From the beginning we put more focus on public sharing, rather then on private. Unfortunately, later we saw that private shares convert about 60% better to new members. By emphasising private shares, we expect new members flow from Invite Friends to increase.
    Results: To be updated soon.