Gamification in Referral Marketing: Guide & Tips
Discover how gamification enhances referral marketing, driving engagement and growth through game-like elements like points, challenges, and rewards.
Justin Britten
Gamification in referral marketing adds game-like elements to boost engagement and referrals. Here's what you need to know:
- Definition: Using points, badges, leaderboards, and challenges in referral programs
- Benefits: Increases user involvement, referrals, brand loyalty, and data collection
- Key elements:
- Point systems
- Leaderboards
- Badges and achievements
- Progress bars
- Challenges and quests
- Rewards
Company | Gamification Element | Result |
---|---|---|
Dropbox | Extra storage space | 60% increase in sign-ups (30 days) |
Uber | Referral dashboard | 20% more driver referrals (1 month) |
Airbnb | Travel credits | 300% year-over-year growth |
Tips for success:
- Keep it simple
- Make it mobile-friendly
- Update regularly
- Listen to user feedback
- Track and analyze results
Future trends: AI personalization, blockchain for instant rewards, closer social media integration
Basics of gamification in referral marketing
Main ideas behind gamification
Gamification in referral marketing uses game-like elements to make referring friends more fun. It taps into what motivates people naturally:
- Achievement: Setting clear goals for users to reach
- Competition: Using leaderboards to create friendly rivalry
- Social interaction: Letting users compete with friends
- Curiosity: Adding elements of surprise to keep things interesting
These ideas make people want to take part in referral programs more often.
How gamification changes user behavior
Gamification has a big impact on how users act in referral marketing:
- More engagement: Over 50% of users say they'd pay more attention to apps with game-like features.
- Keeps people motivated: As users get closer to their goals, they try harder (goal gradient effect).
- Creates good habits: Users want to keep coming back and taking part.
- Builds brand loyalty: People feel more connected to brands that give them a sense of progress.
Key parts of good gamification plans
To make gamification work well in referral marketing, you need these parts:
Part | What it does | Real-world example |
---|---|---|
Clear goals | Give users specific targets | Starbucks Rewards: Earn stars for each purchase |
Game mechanics | Use points, badges, and challenges | Nike+ Run Club: Track runs and compete with friends |
Personal touch | Make it fit each user | Customized challenges based on what users like |
Levels and skills | Let users improve and move up | Duolingo: Language learning levels |
Social features | Let users connect and compete | Habitica: Do tasks with friends |
Rewards | Give quick praise for good actions | Woot!: Daily deals with time limits |
Real results | Link online actions to real-world outcomes | Forest app: Plant real trees when users are productive |
Examples of successful gamification in referral marketing
1. Dropbox's Space Race
Dropbox saw big gains with their gamified referral program:
- Users got 500MB extra storage for each friend who joined
- A progress bar showed how much space they'd earned
- Users could get up to 16GB of extra space
Result: 60% more sign-ups in just 30 days after launch.
2. Uber's Driver Referral Dashboard
In 2015, Uber added game elements to their driver referral program:
- Drivers could set personal referral goals
- A dashboard showed their progress
- Top referrers got special rewards
Result: 20% more driver referrals in the first month.
3. Airbnb's Travel Credits
Airbnb's program offers benefits to both sides:
- Referrers get $30 in travel credit for each new user who books
- New users get $65 off their first trip
Result: Airbnb grew by 300% year-over-year for several years.
These examples show how gamification can boost referrals and help companies grow quickly.
Tips for implementing gamification in your referral program
- Start small: Begin with one or two game elements and build from there.
- Know your users: Choose game mechanics that will appeal to your specific audience.
- Keep it simple: Make sure the rules and rewards are easy to understand.
- Update regularly: Add new challenges or rewards to keep things fresh.
- Track and adjust: Use data to see what's working and make changes as needed.
Advantages of gamified referral marketing
More user involvement
Gamified referral programs boost customer engagement by making the process fun and interactive. This leads to:
- Higher participation in referral campaigns
- More frequent brand interactions
- Longer time spent on referral programs
Increased referrals
Game mechanics in referral marketing directly impact the number of referrals:
Benefit | Impact |
---|---|
Conversion boost | Up to 7x increase across marketing campaigns |
Higher referral rates | Compared to traditional programs |
Growth potential | Exponential as engaged users refer more friends |
A real-world example shows the power of gamification:
Verafin's Referral Rally campaign aimed for 40 new referrals but achieved 117, showing how game elements can drive referral success.
Stronger brand loyalty
Gamified programs create a stronger bond between customers and brands:
- Higher customer retention
- More brand advocates
- Repeated participation in referrals
For instance, the Starbucks Loyalty Program lets customers earn stars for purchases, leading to rewards and increased brand commitment.
Better data collection
Gamification helps companies gather useful customer data:
Data Type | Use |
---|---|
User behavior | Track preferences and actions |
Referral patterns | Understand how referrals spread |
Program performance | Optimize based on user interactions |
This information helps companies improve their marketing and customer experience.
Market growth
The gamification market is expanding rapidly:
- Expected to exceed $32 billion by 2025
- Growing use in referral marketing across industries
Tips for effective gamification
1. Use various game elements:
- Points
- Progress bars
- Badges
- Leaderboards
- Contests
2. Create urgency with limited-time offers
3. Make the program easy to understand and participate in
4. Regularly update challenges to keep users engaged
5. Use collected data to personalize the experience
Main parts of gamified referral programs
Point systems
Point systems are a key part of gamified referral programs. They give users a clear way to track their progress and earn rewards.
How point systems work:
- Users get points for making referrals or doing other tasks
- Points can be traded for rewards
- More points often mean better rewards
For example, Uber uses points in its rewards program:
- Drivers and riders earn points for trips
- Points move users up through different levels (Blue, Gold, Platinum, Diamond)
- Higher levels give better perks
Leaderboards
Leaderboards show who's doing best in the referral program. They tap into people's competitive side and can boost participation.
Tips for using leaderboards:
- Show top performers based on referrals or points
- Let users share their rank on social media
- Update often to keep interest high
Real-world example: Tesla uses leaderboards for its referral program. The first person to make 10 referrals in each region can win a fully loaded Model X.
Badges and achievements
Badges and achievements are visual rewards for reaching goals in the referral program. They make users feel good about their progress and encourage them to keep going.
Benefits of badges:
- Give users a sense of status
- Provide quick rewards for hitting milestones
- Make users want to collect more
Progress bars
Progress bars show users how close they are to their next goal or reward. They tap into people's desire to finish what they've started.
How to use progress bars well:
- Show current status and next goal clearly
- Use eye-catching designs
- Update in real-time
LinkedIn uses progress bars to encourage users to complete their profiles. This keeps users engaged and improves the value of the platform.
Challenges and quests
Challenges and quests add a sense of adventure to referral programs. They give users specific goals to reach within a set time.
Key parts of challenges:
- Time limits to create urgency
- Different difficulty levels for all types of users
- Themes that match company promotions or seasons
Example: Verafin's Referral Rally campaign used challenges and badges in a month-long program. They aimed for 40 new referrals but got 117, showing how well this approach can work.
Rewards
Rewards are what users get for taking part and doing well in the referral program. They're the main reason many people join in.
Tips for good rewards:
- Mix quick rewards with bigger, long-term ones
- Make sure rewards matter to users
- Use milestone rewards to keep users coming back
Starbucks shows how rewards can work well:
- Customers earn stars for buying drinks and food
- Stars can be used for free items
- This system keeps customers loyal and encourages them to tell others about Starbucks
Gamification Element | Example | Result |
---|---|---|
Point System | Uber's tiered rewards | Increased driver and rider engagement |
Leaderboard | Tesla's referral program | Motivated top performers with high-value rewards |
Challenges | Verafin's Referral Rally | 117 new referrals (goal was 40) |
Rewards | Starbucks Loyalty Program | Increased customer loyalty and word-of-mouth marketing |
These parts work together to make referral programs more fun and effective. By using them, companies can get more people to join in and make more referrals.
How to create a good gamified referral program
Set clear goals
Before starting your gamified referral program, decide what you want to achieve. Pick goals you can measure, like:
- Increase user engagement by 30% in 3 months
- Get 25% more referrals in the first quarter
These goals will help you design your program and check if it's working.
Know your audience
To make a good gamified referral program, you need to understand who will use it. Look at:
- Who your users are (age, job, etc.)
- What they like
- How they use your product
For example, if your users are young professionals, they might like competing with others. You could add leaderboards or timed challenges to your program.
Choose the right game features
Pick game elements that your users will enjoy and that help you reach your goals. Some options are:
Feature | What it does | Example |
---|---|---|
Points | Track progress | Duolingo gives points for completed lessons |
Leaderboards | Show top performers | Woot! ranks top referrers |
Badges | Reward achievements | Habitica gives badges for completing tasks |
Progress bars | Show how close users are to goals | LinkedIn shows profile completion progress |
Challenges | Give users specific tasks | Forest app challenges users to stay focused |
Make fair rewards
Create rewards that make users want to take part but are also possible to get. Offer:
- Quick rewards for small actions
- Bigger rewards for harder tasks
Make sure the rewards are worth the effort and useful to your users. For instance, Woot! gives top referrers first access to special deals. This makes users feel special and want to refer more.
Keep it simple
Don't make your program too hard to understand. Users should know how to join in easily. For example, the Forest app uses a simple idea: plant virtual trees by staying focused. This is easy to understand and fun to do.
Best practice | Why it's important |
---|---|
Clear rules | Users know what to do |
Easy-to-use design | More people will join in |
Quick start | Users can begin right away |
How to put gamified referrals into action
Mix with current marketing
Blend gamified referrals into your existing marketing efforts:
Marketing Channel | Integration Method |
---|---|
Include referral progress updates in newsletters | |
Social media | Create shareable badges for successful referrals |
Website | Show a referral leaderboard on the homepage |
Customer support | Train staff to explain referral program benefits |
Use social media
Boost your gamified referral program through social media:
- Use platform features like Instagram Stories or Twitter polls
- Create program-specific hashtags to track mentions
- Run contests that link to referral program goals
Make it work well on mobile
Ensure your program works smoothly on smartphones:
1. Use responsive design
Make sure the program looks good on all screen sizes.
2. Speed up loading times
Optimize images and code for quick loading on mobile networks.
3. Add easy sharing options
Include one-tap buttons for sharing on social media and messaging apps.
Personalize the experience
Tailor the program to each user:
Aspect | How to Do It |
---|---|
User preferences | Let users pick their favorite reward types |
Challenges | Offer tasks based on past user actions |
Difficulty | Make challenges harder as users improve |
Notifications | Send reminders based on user activity |
Real-world success stories
1. Dropbox's Space Race
Dropbox's gamified referral program offered:
- 500MB extra storage for each friend who joined
- A progress bar showing earned space
- Up to 16GB of extra space
Result: 60% increase in sign-ups within 30 days of launch.
2. Uber's Driver Referral Dashboard
In 2015, Uber added game elements to their driver referral program:
- Drivers set personal referral goals
- A dashboard showed progress
- Top referrers got special rewards
Result: 20% increase in driver referrals in the first month.
3. Airbnb's Travel Credits
Airbnb's program offered benefits to both sides:
- Referrers got $30 in travel credit for each new user who booked
- New users got $65 off their first trip
Result: 300% year-over-year growth for several years.
These examples show how gamification can boost referrals and help companies grow quickly.
Measuring results of gamified referral programs
Key metrics to track
To check how well your gamified referral program is doing, keep an eye on these numbers:
Metric | What it means | Why it's important |
---|---|---|
Referral rate | % of users who refer others | Shows how many people are taking part |
Conversion rate | % of referred people who become customers | Tells you if the program is working |
Customer acquisition cost (CAC) | Cost to get a new customer through referrals | Helps you see if the program is cost-effective |
Lifetime value (LTV) | Total money expected from a referred customer | Shows long-term benefits |
Viral coefficient | New users each current user brings in | Indicates how fast the program can grow |
Tools for checking program performance
Use these tools to keep track of your gamified referral program:
1. Google Analytics
- See how many people come from referrals
- Set up special tracking for referral actions
- Make quick-view dashboards
2. Referral-specific tools
- ReferralCandy: Tracks referrals and manages rewards
- Friendbuy: Lets you test different versions and add referral widgets
- Ambassador: Gives detailed stats and tracks across different channels
3. Customer Relationship Management (CRM) systems
- Salesforce: Adds referral info to customer profiles
- HubSpot: Tracks where referrals come from and links them to sales
Testing different approaches
Try out these ideas to make your program better:
1. Test different rewards
- Compare point systems vs. level-based rewards
- Try out different reward amounts and types
2. Try various game features
- Test leaderboards against progress bars
- Compare solo challenges to team tasks
3. Change referral requirements
- Test asking for one referral vs. multiple referrals
- Compare instant rewards to delayed ones
4. Improve the look and feel
- Test different layouts for referral dashboards
- Compare game-like elements such as animations or sounds
Real-world example: Dropbox's Space Race
Dropbox's gamified referral program shows how effective these strategies can be:
Feature | Result |
---|---|
500MB extra storage per referral | 60% increase in sign-ups |
Progress bar for space earned | Within 30 days of launch |
Up to 16GB of extra space | Significant user engagement boost |
This example demonstrates how gamification can lead to quick and substantial growth in user acquisition and engagement.
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Common mistakes and how to avoid them
Overcomplicating the process
Many companies make their gamified referral programs too complex, which can turn users away. To keep things simple:
- Stick to basic rules that are easy to understand
- Explain how to take part in a few clear steps
- Use only a couple of game elements, not too many at once
For example, Dropbox's referral program is straightforward: users get 500MB of extra space for each friend who joins, up to 16GB. This simple approach led to a 60% increase in sign-ups within a month of launch.
Neglecting user experience
A poor user experience can make people stop using your referral program. To make it better:
- Design an easy-to-use interface
- Make sure referring friends is quick and simple
- Ask users what they think and make changes based on their feedback
Uber's driver referral program shows how good user experience pays off. By adding a clear dashboard for drivers to track their referrals, Uber saw a 20% jump in driver referrals in just one month.
Offering unappealing rewards
If your rewards don't excite users, they won't bother referring others. To fix this:
- Find out what your users actually want
- Give rewards that match what your business offers
- Mix different types of rewards (like discounts and special access)
Airbnb's success with travel credits shows the power of good rewards. Referrers get $30 in credit for each new user who books, while new users get $65 off their first trip. This helped Airbnb grow by 300% year-over-year for several years.
Letting the program get stale
An unchanged referral program can get boring over time. To keep it fresh:
- Add new challenges or rewards regularly
- Look at your program's numbers to see what's working
- Keep up with what's new in your industry
Mistake | How to fix it | Example of success |
---|---|---|
Too complex | Keep it simple | Dropbox: 60% more sign-ups with easy space rewards |
Bad user experience | Make it user-friendly | Uber: 20% more driver referrals with clear dashboard |
Poor rewards | Offer what users want | Airbnb: 300% yearly growth with travel credits |
Program gets old | Update regularly | N/A (No specific example available) |
Tips for long-term success with gamified referrals
Add new content often
Keep users engaged by adding fresh content to your gamified referral program:
- New challenges
- Seasonal promotions
- Limited-time rewards
For example, Starbucks updates its rewards program with new challenges and seasonal offers throughout the year.
Keep users interested
Prevent boredom by:
- Adding surprise rewards
- Creating a tiered system with special perks
- Sending reminders about ongoing promotions
Nike's Run Club app offers varied challenges and achievements to keep runners motivated.
Adjust based on user feedback
Improve your program by:
- Doing regular surveys
- Looking at user data
- Testing different program parts
Duolingo refines its game elements based on user data, which led to a 12% increase in daily active users year-over-year.
Mix competition and teamwork
Balance individual and group efforts:
- Add team challenges
- Create leaderboards for individuals and groups
- Give rewards for personal and team goals
Fitbit's challenges let users compete alone or in groups.
Tip | Example | Result |
---|---|---|
New content | Starbucks' seasonal offers | Users stay engaged year-round |
Varied challenges | Nike Run Club's diverse tasks | Users stay motivated longer |
User-based changes | Duolingo's data-driven updates | 12% more daily active users |
Team and solo play | Fitbit's group and individual challenges | More user interaction |
Track and improve
Keep an eye on how your program is doing:
- Look at key numbers like referral rate and new customer sign-ups
- Use tools like Google Analytics to track referrals
- Try different approaches and see what works best
Dropbox's referral program led to a 60% increase in sign-ups in just 30 days by offering extra storage space for referrals.
Make it easy to use
Ensure your program is simple:
- Have clear rules
- Make referring friends quick and easy
- Ask users what they think and make changes
Uber's driver referral program saw a 20% increase in referrals in one month after adding a clear dashboard for drivers to track their progress.
Offer good rewards
Give rewards that users want:
- Find out what your users like
- Offer rewards that fit your business
- Mix different types of rewards
Airbnb's travel credit rewards helped the company grow by 300% year-over-year for several years.
Company | Reward | Result |
---|---|---|
Dropbox | Extra storage space | 60% more sign-ups in 30 days |
Uber | Clear referral tracking | 20% more driver referrals in 1 month |
Airbnb | Travel credits | 300% yearly growth for several years |
What's next for gamified referral marketing
New tech in gamification
Blockchain and AI are changing how gamified referral programs work. These technologies make rewards faster and more personal.
Blockchain for quick rewards
Travel companies are testing blockchain for referrals. Here's how it could work:
Feature | Benefit |
---|---|
Smart contracts | Automatic rewards when friends book |
No manual checks | Faster payouts to users |
Clear tracking | Users see their rewards easily |
AI for smarter referrals
AI helps companies spot who's likely to refer others. It can:
- Find users who often share with friends
- Suggest the best rewards for each person
- Change rewards based on how well they work
Making referrals fit each user
Companies now use data to make referrals feel more personal. This means:
- Rewards that match what users like
- Challenges based on how people use the app
- Referral messages that speak to each user's interests
For example, a fitness app could offer:
User Type | Personalized Referral Offer |
---|---|
Runner | "Get a free month when your friend joins our 5K challenge" |
Weightlifter | "Refer a gym buddy and both get protein shake discounts" |
Yoga enthusiast | "Share the zen: You and a friend get a free online class" |
Mixing games with social media
Referral programs are getting closer to social media. This makes sharing easier and more fun.
New features might include:
- One-click sharing to multiple platforms
- In-app leaderboards showing top referrers among friends
- Special badges for social media influencers who bring in new users
What companies should do next
To stay ahead with gamified referrals:
- Test blockchain for faster rewards
- Use AI to find your best referrers
- Make your program feel personal to each user
- Connect your referrals to where users spend time online
Wrap-up
Key takeaways for gamified referral marketing
Gamified referral programs have shown great results for SaaS companies. Here's what to remember:
Element | Purpose | Example |
---|---|---|
Point systems | Track progress | Dropbox: 500MB extra storage per referral |
Leaderboards | Show top performers | Uber: Driver referral dashboard |
Challenges | Give specific tasks | Verafin: Referral Rally campaign |
Personalized rewards | Match user preferences | Airbnb: Travel credits for referrers and new users |
Future trends in gamified referrals
The field of gamified referrals is changing fast. Here's what's coming:
1. AI for smarter programs
AI will help make referral programs more personal. It can:
- Find users likely to refer others
- Suggest the best rewards for each person
- Change rewards based on how well they work
2. Blockchain for quick rewards
Some travel companies are testing blockchain for referrals. This could mean:
- Instant rewards when friends make bookings
- Clear tracking of referral progress
- No need for manual checks
3. Closer ties with social media
Referral programs will work better with social platforms. We might see:
- One-click sharing to multiple social networks
- In-app leaderboards showing top referrers among friends
- Special badges for social media influencers who bring in new users
Tips for success
To make your gamified referral program work well:
- Keep it simple: Dropbox saw a 60% increase in sign-ups with an easy-to-understand program.
- Make it mobile-friendly: Ensure your program works well on smartphones.
- Update often: Add new challenges or rewards to keep users interested.
- Listen to users: Ask for feedback and make changes based on what you hear.
- Track results: Use tools like Google Analytics to see how your program is doing.
Extra: Tools for gamified referral marketing
Popular gamification software
Here are some widely used tools for gamified referral marketing:
Tool | Key Features | Notable Users |
---|---|---|
Referral Factory | Customizable programs, leaderboards, tiered rewards | Uber, Airbnb |
Friendbuy | Easy integration, analytics, point systems | Walmart, Casper |
Talkable | Social sharing, personalized rewards | Stitch Fix, Rothy's |
Ambassador | Tiered rewards, referral tracking dashboards | HP, Zillow |
Mention Me | "Name sharing" feature, leaderboards, challenges | ASOS, Farfetch |
Real-world success stories
1. Dropbox's Space Race
Dropbox used a custom-built referral program offering:
- 500MB extra storage per referral
- Progress bar showing earned space
- Up to 16GB of extra space
Result: 60% increase in sign-ups within 30 days of launch.
2. Uber's Driver Referral Dashboard
Uber implemented Ambassador for their driver referral program:
- Drivers set personal referral goals
- Dashboard showed progress
- Top referrers got special rewards
Result: 20% increase in driver referrals in the first month.
3. Airbnb's Travel Credits
Airbnb used Referral Factory to create their program:
- Referrers got $30 in travel credit for each new user who booked
- New users got $65 off their first trip
Result: 300% year-over-year growth for several years.
Choosing the right tool
When picking a gamification tool, think about:
- How easy it is to set up
- If it can grow with your business
- If it has the features you need
Try free trials or demos to test how they work before you decide.
Tips for using gamification tools
- Start small: Begin with one or two game elements
- Track results: Use the tool's analytics to see what's working
- Update often: Add new challenges or rewards to keep users interested
- Ask users: Get feedback on what they like and don't like
- Make it mobile-friendly: Ensure your program works well on phones
FAQs
How to gamify a referral program?
To effectively gamify a referral program, follow these key strategies:
1. Add game elements
Element | Description | Example |
---|---|---|
Points | Assign for successful referrals | Dropbox: 500MB storage per referral |
Badges | Reward achievements | Duolingo: Language proficiency badges |
Levels | Create tiers for progression | Starbucks Rewards: Gold, Platinum status |
2. Use tiered rewards
Offer increasing incentives based on referral numbers:
Referrals | Reward | Company Example |
---|---|---|
1 | $10 credit | Airbnb: $30 travel credit |
5 | $75 credit | Uber: $100 ride credit for 5 referrals |
3. Provide real-time feedback
- Keep customers informed about their referral status
- Use progress bars to show advancement towards goals
Example: LinkedIn's profile completion bar increased profile completions by 55%.
4. Create challenges and quests
- Set time-bound referral goals
- Offer special rewards for completion
Example: Verafin's Referral Rally campaign aimed for 40 new referrals but achieved 117 in one month.
5. Implement leaderboards
- Showcase top referrers to encourage competition
- Update rankings regularly
Example: Tesla's referral program leaderboard offers a chance to win a fully loaded Model X for the first person to make 10 referrals in each region.
What are some successful gamified referral programs?
Company | Program Features | Results |
---|---|---|
Dropbox | 500MB extra storage per referral, up to 16GB | 60% increase in sign-ups within 30 days |
Uber | Driver referral dashboard, personal goals | 20% increase in driver referrals in first month |
Airbnb | $30 travel credit for referrers, $65 off for new users | 300% year-over-year growth for several years |
How can I measure the success of a gamified referral program?
Track these key metrics:
Metric | Description | Why It's Important |
---|---|---|
Referral rate | % of users who refer others | Shows program participation |
Conversion rate | % of referred people who become customers | Indicates program effectiveness |
Customer acquisition cost (CAC) | Cost to get a new customer through referrals | Measures cost-efficiency |
Lifetime value (LTV) | Total expected revenue from a referred customer | Shows long-term benefits |
Viral coefficient | New users each current user brings in | Indicates growth potential |
Use tools like Google Analytics, ReferralCandy, or Friendbuy to track these metrics.
What are common mistakes in gamified referral programs?
- Overcomplicating the process
- Keep rules simple and easy to understand
- Example: Dropbox's straightforward 500MB per referral led to 60% more sign-ups
- Neglecting user experience
- Design an easy-to-use interface
- Example: Uber's clear driver referral dashboard increased referrals by 20%
- Offering unappealing rewards
- Provide rewards that match user preferences
- Example: Airbnb's travel credits helped achieve 300% yearly growth
- Letting the program get stale
- Regularly update challenges and rewards
- Example: Starbucks frequently updates its rewards program with seasonal offers
What's the future of gamified referral marketing?
- AI for personalization
- Find likely referrers
- Suggest tailored rewards
- Adjust rewards based on performance
- Blockchain for instant rewards
- Smart contracts for automatic payouts
- Clear tracking of referral progress
- Integration with social media
- One-click sharing to multiple platforms
- In-app leaderboards showing friends' rankings
- Special badges for influencers bringing new users
Companies should test these technologies to stay ahead in gamified referral marketing.