Referral Reward Strategy: Credit Unions
Choosing the right referral reward is essential to maximizing engagement and driving new member acquisition. The reward should be compelling enough to motivate both current members and their friends, while also aligning with the requirements needed to earn it.
Recommended Reward Structure
To create an effective referral program, it's important to ensure that reward value matches the effort required. The more actions a new member must complete—such as transactions, direct deposits, or digital banking adoption—the higher the reward they’ll expect.
Here are some recommended reward and requirement combinations for standard deposit products:
- Give $50, Get $50 when the friend opens up a checking account and completes 10 transactions
- Give $50, Get $50 when the friend opens up a checking account and completes two direct deposits of $500 or more
- Give $25, Get $25 when the friend opens a checking account and is in good standing after 30 days
Tiered Reward Structure
For credit unions looking to promote multiple financial products, a tiered reward structure can be an effective strategy. This approach allows you to assign different rewards to different products—such as loans, mortgages, or high-yield savings accounts—based on their value and requirements.
For example:
- Mortgage Referral: Give $250, Get $250 when a referred member has their loan funded
- Credit Card Referral: Give $50, Get $50 when a referred member gets approved and makes their first purchase
Extole supports customized reward structures by product type, ensuring your referral program remains flexible and aligned with your business goals.
Adapting Your Referral Program Throughout the Year
To maximize engagement, your referral program should remain dynamic and adaptable. Adjusting rewards seasonally can help sustain momentum during slow periods and amplify referral activity during peak times.
Strategies to Keep Your Program Fresh:
- Run Limited-Time Offers: During key promotional periods (e.g., back-to-school, tax season, holidays), increase referral rewards or launch double rewards campaigns to create urgency and excitement.
- Diversify Reward Types: Experiment with non-monetary incentives like branded swag, exclusive events, or giveaway entries to keep the program engaging for different member segments.
Don't Forget A/B Testing
Like all aspects of the referral program, the incentives can and should always be tested to see what works best for your audience. Check out the resources below to set one up.
Updated 4 days ago