Shot #51: Viral Acquisition Loops

Hi, this is Luv .

Here’s your weekly marketing shot.

Let’s begin.

Viral Acquisition Loop is essentially a growth loop on steroids where one user is continuously referring new users to maintain/improve his position for the incentive.

Most fintechs (especially neo banks) use this loop to create a long waiting list, resulting in the hype and a lower CAC.

To explore more on this, I signed up on Jupiter Money (one of the upcoming neo-banks in India)

The incentive structure looks like this

As soon as I signup for the firstlist, I receive an email with a position number.

Now, the loop starts.

- to maintain or improve my rank on the firstlist, I have to refer as many friends as I can till the product is launched.- once my friends get into the loop, each friend will create their own loop.

This will go on and on..

To give me a little nudge, Jupiter periodically sends me emails like the one below.

Why this is an awesome acquisition strategy?

- Unlike the traditional referral systems where the incentive is paid for each successful referral, the company has to give incentives only to users who are able to maintain their ranks at the time of launch. This significantly brings down the CAC.- Word-Of-Mouth is the best form of customer acquisition- Creates hype for the product launch- To maintain your position you have to actively look for new people to signup. To do so you:-

• share the referral link on your social media profile (Facebook, Twitter, LinkedIn)

• share the referral link via Whatsapp messages/stories

• maybe write a post about it on Quora, your personal blog, Facebook groups or any discussion forum

Jupiter gets to enjoy all this promotion for free.

Over to you.

Can you create a growth loop for your business?

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Thanks,

LuvCo-founder ExperienceSaga.com

(About Me)