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Unlock the Power of Variable Rewards in Your Referral Program

Referral

Discover how to use the power of variable rewards to increase engagement and conversions in your referral program.

Unlock the Power of Variable Rewards in Your Referral Program

Random rewards create a cognitive bias that increases our desire to take our chances. This is because the uncertainty of the reward releases more dopamine - the neurotransmitter that supercharges our desires - than the reward itself, as do gambling. You can easily use the mechanism in your referral program. Instead of using predictable rewards (if you refer 1 people, you win 50$), create a system of variable rewards (if you refer 1 people, you can win from 10$ to 100$). This will create a sense of anticipation and excitement, and will encourage more people to participate in your referral program.

How to implement
  1. Identify the rewards you want to offer in your referral program.
  2. Create a system of variable rewards, where the reward amount is randomly determined.
  3. Promote your referral program and the variable rewards system to your existing customers.
  4. Track the performance of your referral program and adjust the rewards accordingly.
  5. Monitor the success of your referral program and adjust the rewards as needed.