How effective are invite programs?

The percentage of user growth contributed to invite programs can vary, but they often play a significant role in expanding the user base.

Incentivizing the invite program can indeed increase its performance, and while both cash rewards and badges/public recognition can be effective, the impact may vary depending on the target audience and their motivations.

For the initial phase of the referral program, start with a simple and non-incentivized approach. Monitor the results for 4-8 weeks and assess if it contributes to your growth, aiming for a 5% benchmark. This metric is closely tied to your Net Promoter Score (NPS), as a higher NPS correlates with a greater likelihood of user referrals without incentives. Once established, consider introducing a bonus to the referral program, which is likely to increase participation from 5% to around 10%. However, remember that the key driver of success remains the NPS, which is more closely associated with the product itself rather than the incentive.

Invite programs can play a significant role in user growth, with studies suggesting that incentivizing the program, whether through cash rewards or badges/public recognition, can indeed increase its performance and contribute to a higher percentage of user growth.

Incentivizing invite programs can further enhance their performance, as it provides a tangible reward or recognition for users who actively participate in inviting others, leading to increased motivation and engagement.