Friend Referral Project Case Study

Objective
An online bank was spending a significant amount on customer acquisition through multiple digital channels. The challenge was to reduce digital spending while still achieving a 20% year-over-year growth in customer acquisition.

Strategy
Data-Driven Analysis: Conducting a comprehensive analysis of existing customer data. The results revealed that the conversion rate (CVR) for new customers acquired through referrals from existing customers was 40%, compared to a CVR of only 2% from certain paid acquisition campaigns.

Referral Program Implementation: Based on these insights, we developed and launched a robust referral program. This program incentivized existing customers to refer new ones by offering attractive rewards. Key components of this strategy included:

New Web Pages: Dedicated landing pages were created to facilitate and track referrals easily.
Optimized EDM Templates: Email marketing campaigns were designed with optimized templates to encourage and streamline the referral process.
Advanced Tracking Mechanisms: Implementing sophisticated tracking tools allowed us to monitor referral sources and measure the program's effectiveness accurately.
Targeted Paid Ads: While reducing overall spend, we strategically invested in paid ads to promote the referral program, ensuring maximum visibility among our existing customer base.
Next-Best-Action Models: We integrated data-based next-best-action models to personalize and optimize customer interactions. This approach ensured that each customer received the most relevant and compelling incentives to participate in the referral program.

Results:
+50% Overall increase in conversion rate (CVR).
3X Reduction in digital spend on customer acquisition.
+20% Increase in overall revenue.