UI/UX case study — designing referral program for music ed-tech app

In this case study, I have explained my design process and decisions into designing a referral flow for an ed-tech app for all music learners called Rhythm-the music masterclass — a 10k Designers masterclass assignment.

Problem statement

Create a referral flow within the app that helps our most engaged or active users invite their friends and increase the app’s user base without spending money on marketing.

Secondary research

I had very little knowledge about the referral program for apps, so I started with secondary research to gather the necessary understanding and insights about the topic.

What is the importance of referral?

A referral program is a marketing strategy used to incentivize existing customers to recommend or spread the word about the product and service to their friends and family.

Incentives modify human behavior; an attractive and suitable reward motivates the user to represent your brand and make a referral to their family and friends.

And, this attractive reward combined with a friend’s recommendation makes it an offer one cannot refuse to buy.

• It helps to increase the market reach.
• Great ROI when compared to other marketing methods.
• It increases brand awareness.
• It also helps in customer retention.

What are the types of referral programs?

Non-incentivized referral program: Direct referrals (word of mouth), social media recommendations, reviews, etc.

Incentivized referral program:

1. Friend offer: In this type, the referred friend (new customer) gets an incentive on their first purchase. It is attracting new customers to your brand.
2. Advocate reward: The existing customers get an incentive for referring their friends to your brand. Thanking your loyal customers for referring their friends.
3. Two-sided referral: Here, both parties of the referral program get incentives for a successful referral. Referring customers get an advocate reward, and new customers get a friend offer. It is a win-win scenario for both parties to the referral program. (principle of reciprocity)

What are the types of incentives?

There are several varieties of incentives to be offered, but to avoid analysis paralysis and to stay relevant to the business model (i.e., subscription-based music apps), only suitable types are shortlisted.

• Cash rewards
• Discounts
• Free trials
• Donations
• Gift cards
• Free subscription service

Competitive analysis

Some competitive analysis is to understand how the existing apps are doing in the referral program.

Brainstorming around a few questions before ideating

Ideation

I decided to implement a two-sided referral system for the following reasons:

• It creates a win-win situation for both the referrer and the referee. Giving both parties a reason to join the program can lead to the highest number of successful referrals.
• The majority of customers lack the motivation to refer or accept an invitation without an incentive; giving incentives on both sides boosts the number of referrals.
• It gives a sense of altruism to the referrers making the process more effective.
• People are more trustworthy when the benefits (referral) came from their friends and family.

What are the incentives?

Since the music app is a subscription-based model, I decided to add a discount on subscriptions as an incentive.

The subscription-based model has repeat purchases (monthly or yearly); discounts provide great value, boosting sales and encouraging customer retention.

How does it work?

• The referee (new customer) gets 10% off on their first subscription.
• The referrer, too, gets 10% off with each invite once their friend subscribes to any instrument. Additionally, the referrer gets five invites for every subscription interval, giving them an opportunity to earn up to 50% off (10% off per invite) on their subscription for five successful referrals.

Allowing referrers to earn up to 50% off on every subscription fosters relationships with existing customers, improving customer retention and brand loyalty.

Also, to avoid referrers thinking that referring a friend is too much effort compared to the benefit obtained.

Visual designs

The precise information like the number of invites, their statuses, total discount earned, pending discount, and maximum that can be earned in one place gives the users better control in a simplified manner eliminating confusion.

The condition to utilize the referrals to the max before the subscription date creates a sense of gamification.

Touchpoints

1. Showing the referral program upfront in the banner rather than deep down into the funnel informs the value proposition.
2. The users would have frequent visits to the profile sections; placing the referral program touchpoint would make it more actionable.
3. The notification section nudges users about the referral program by regularly informing benefits, actions on pending invites, and deadlines.

Tracking

The tracker helps the user keep records of

• who was referred?
• When was it referred?
• Whether or not a conversion was made?

This information helps the user follow up with the referee and manage the referral system seamlessly.

That’s a wrap!!
Thank you for reading till the end. I hope you found it insightful.

I thank Abhinav Chhikara for giving me this assignment as a part of the 10k Designers masterclass.