Amazon just made a really, really good move.
To incentivize more customers to install their app and shop from their phones, the online retailer is pushing out a mobile referral program rewarding each new mobile app user with up to $10 in-store credit.
This masterstroke will benefit the retail mammoth for years to come.
In creating a mobile Refer a Friend program, Amazon's mobile application reaps three key benefits in one stroke:
1. New Customer Acquisition Via Referrals
The first obvious benefit is user acquisition. The $5 credit is a great way to break down barriers to trying Amazon's mobile app, and certain places referred users one step closer to making a purchase.
2. More Mobile App Downloads
Because the referral program is mobile, invitations are sending newly referred users directly to the Amazon app, which dramatically increases the amount of downloads generated in favor of the application.
3. Organic Uplift
Working together, the two points above create artifical organic uplift generated by the app's increased ranking.
It initiates a viral loop that causes the app to generate greater downloads and greater rankings at greater speeds and volume each time.
As downloads increase, so does the app's mobile rankings.
As those rankings rise, organic downloads increase.
Each time, this loop restarts with greater impact. Why?
For the same reason, the organic uplift gained from moving from position #80 to #27 is dramatically greater than moving from #200 to #164.
That is one of the key qualifications of a successful referral program: scale.
TechCrunch qualifies Amazon's effort as "just a standard referral program," though it is much, much more.
Amazon was able to achieve this with a double-sided reward offering current app users $5 to share the Amazon App with friends, also granting referred friends who install the app $5 to spend on the site.
The referral program is implemented in three main sections:
First View: Call To Action
The first view is the invitation call to action. It delivers simple messaging and powers the mechanism to initiate an invitation. In this case, by tapping the yellow "Get Started" button.
Second View: Invitation
The second view offers two calls to action.
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