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?
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.