This is the story of Groww, which increased the performance of its referral program by 100x using Gpay like Scratch Cards.
It is an investment platform that wants to make investing simple and accessible for everyone using technology.
It was launched in April 2017, just 5 months after Demonetisation by ex-Flipkart employees with a sharp focus on the next generation of investors — read Millenials.
You can find a lot of articles on the Internet that talk about — how they started, the vision, funding, roadmap, etc — so I am going to cut the chase and straight get to the exciting stuff.
MVP to Product-Market Fit
The most important thing before starting any referral program is to “have a product” 😉 and of course Product-Market Fit (PMF). Without PMF, you will just be wasting time & money on the referral program.
Unlike most startups, the Groww team did not wait for their perfect native apps to test out the market. They created a progressive web app and launched it with just three mutual funds (their MVP).
It took them just 2 months to build the first version. They iterated over the next few months — adding necessary features and removing unhelpful ones — based on users’ feedback to get PMF.
They had a clear focus on whom to target — first-time millennial investors. However, they knew that it’s very hard to establish trust among this section of the population. Also, Groww was a small startup and not many had heard about them.
To solve the problem, the founders themselves handled customer support — talking to customers & resolving their issues. This won them the trust of the early customer base and who in-turn started recommending Groww to their friends and family.
Your customers will only talk about your product and recommend it to their friends/family if it is solving a real problem they have and think their friends/family will also benefit by using it.
With this, Groww determined that there is a widespread set of customers that resonates with their product and started focusing on growth.
Amplifying Word-of-mouth using a Referral Program