How a millennial-focused investment App used Scratch Cards to 100x their referral program?

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.

Amplifying Word-of-mouth using a Referral Program

The wealth management space in India is very competitive and crowded with heavy-weights.

Initial Referral Program without Scratch Card explained

Groww started a referral program in August 2017, offering up to ₹1000 for every successful referral.

Screenshot Groww Referral Program — August 2017
Groww Referral Program details
Referral Program Details
  • Unique Referral Link & Dashboard — You have to share your link with friends and when they register with the link, they add them to your Referral Dashboard. (You can read about the importance of referral dashboards in my previous article on Dropbox Referral Program)
  • Referral Stages Notification — They will notify you of each step that your friend takes on Groww. (This assures you that your referrals are accounted for and also creates an opportunity for Groww to re-engage)
  • Reward Stages — You will be rewarded ₹50 when your friend completes the Sign-up stage (i.e. OTP verification). Then a reward of ₹100 will be given when your friend completes the Documents Verification stage and then finally you will get a reward of ₹850 when your friend completes the Investment stage.
Groww Referral Stages
Referral Tracking in Groww Referral Program
  • Name of the referral
  • Amount earned for the referral
  • Referral Stage Progress
Referral Program Information

Groww Referral Program with Scratch Cards

They decided to go ahead with variable cash rewards using scratch cards.

  1. Variability increases activity in our brain and spikes levels of the neurotransmitter dopamine which drives our hungry search for rewards.
  2. We are more excited when anticipating a reward than after getting the reward itself. Neuroscience tells us this happens because our dopamine system works not to provide us with rewards for our efforts, but to keep us searching by inducing a semi-stressful response called Desire.
Groww Referral Program with Scratch Card
Referral Screen
Referral WINNING Chance Screen
  1. No two-way rewards — Do you remember that Groww as an investment platform can’t reward the Referee (the user who is being invited to join the platform) because of some regulations? — The remind option gives Referrer an opportunity to nudge her friends to invest.
  2. Conversion Time — It usually takes 3–7 days for a referral to convert and a slight push from friends helps in speeding up the process.

Scratch Card vs Without Scratch Card

Their latest referral program with Scratch Card rewards outperformed the one without a scratch card. Check out the results below —

  1. 100x more signups through referrals in a month after implementing scratch cards.
  2. CAC of referral channel = 50% of other channels CAC
  3. 50% increase in “signup to investment” conversion rate for users from the referral channel.



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