We want to install some kind of growth hack referral model to our new project similar to groupon - online ecommerce web where users group together and get huge discounts if the goal is reached. Our products are Fashion clothes. We can offer 70% off retail prices. Our thoughts: 1) Let users register with Facebook only. 2) We make a very simple way to invite facebook friends to our website. (don't know how to make it super simple yet) 3) We give a referral link to the user and he can share it for 10% discounted products with his friends. 4) if the user's invited friends buy, we give him additional 10% discount or $30 in cash to spend. Any experienced growth hackers here?
Expertise: I currently run a high performing referral channel with several million invites every year.
As you build out your growth strategy it’s important to identify the main “macro” conversion. This is an action that you need users to take to make the product successful.
In your case, the product goal is - get multiple people to commit to buying a single product. On the other side of this, your customer’s goal is - to get a deep discount on a product.
On the surface it would seem that the more comprehensive way to get users to invite others to your service is to get them to go in on buying a product together. This would mean that you want to build your growth features around sharing product pages.
However, one might consider that while friends and family might be buying same offer for things like food, activities and experiences, they might not be willing to buy the exact same shoes, dress or pants.
That said, you seem to be on the right track with the referral link plan. The key to getting people to invite others is to clearly showcase the functionality and benefits.
a) Triggers - you need multiple placements from which to invoke the invite flow.
Product page to display -10% price with CTA to share ("Get this product for 10% by inviting friends)
Home page (“Make your next purchase 10% by getting your friends to sign up and buy”)
Emails promoting the program.
b) Landing page that clearly explains the program (“Get $30 to spend when your friends join and buy”)
c) 2-sided benefits, consider clearly offering something to the invitee other than your great group buying prices (“Invite your friends and you both get 10% off your next purchase")
On the technical level for Facebook sharing you might want to consider Messenger vs. Wall Posts. While you might think that you’re getting more reach with a wall post, consider that Facebook algorithm is not very kind and your shared post might not get seen much. Direct messages on the other hand are user-to-user. They have a very high likelihood of getting opened and lead to much better clickthrough.
This might be quite a bit to build on your own and you might want to experiment with a service like Extole. I haven’t used them myself, but I’ve recently reviewed their offering and it seems like a good way to get a new referral program started.
Lastly, don’t discount email invites. They still perform really well in terms of engagement and can be fairly simple to set up with a mailer and a well optimized template.
Most important - figure out what kind of numbers work for you. It’s easy to get a referral program get out of hand in terms of cost if you’re finding that your payback period is of significant length.
Feel free to schedule a call if you would like to discuss further.
Unfortunately, I only see marketing/sales gimmicks and not any growth hacking DNA in what you are doing.
Just because I get a discount, in this day and age, is not enough for me to try you.
What kind of customers do you have. I mean specifically. Fashion clothes...for whom? Babies? Teens? Men in Executive positions?
What do THEY WANT? What do THEY DO?
Do they like to party? then encouraging fashion show parties at home would bring great word of mouth via tastemakers.
What makes your clothes so special (besides offering 70% off retail). Is the only they care about is money? if so, they probably are not really "fashion" people...they are "discount" people. Which means you must address them differently.
Can you get celebrity endorsements? Can someone win a date with one? Can you make someone into a celebrity? Do they aspire to be actors or models? can you get someone in a show or on a set?
What is your content strategy? Do you have a fashion how to show that gathers the interest of your target while selling your clothing?
To growth hack is simple. Ask your customers what they want..do it.
I am happy to help you map out a strategy. Set up a call with me to build a growth hacking map.
I have experience with direct to consumer growth, referral growth and WOM for startups and large corps.
Your plan makes sense but I think you could test a few key elements to identify the most effective approach for your goal.
Is your primary goal to get more people to view the site through referrals or is the goal to drive more people to complete the purchase of products?
- Do you have the ability to give a product as the goal? EG. A one size accessory for referring 3 friends? A tangible product may work better than a discount in this case.
- I have found that giving users a big discount/offer to give to friends is most effective especially when you want them to share Fashion.
- You can create a feedback loop to confirm if the offer is correct or if there is something else preventing referrals.
- Do you have cart technology on your site? If you do there are a number of plugins that can help you test and manage this type of hack to avoid the potential hurdle of facebook sign up.
I think I probably need a few more details to be really useful on this question. I'm happy to chat if you'd like to arrange a call.