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Aug 23 2019

TikTok Tries Referral Rewards To Drive Downloads


TikTok’s latest growth strategy centers around rewarding its users who refer the app to a family member or friend. Points are collected when users invite someone to sign up to the app through a unique invitation code. As users accumulate points, they are able to redeem them for cool prizes among their favourite retailers, including Starbucks, Uber and Burger King.

TikTok has seen a rapid rise in user growth since 2018, but noted a decline in downloads in April 2019 due to Indian regulators temporarily banning the app. However, TikTok hopes to invigorate the number of downloads as it approaches one billion downloads worldwide. In order to achieve this, TikTok has focused a large portion of their resources to advertise their app. The company has decided to advertise on both Twitter and Instagram while also recruiting campus ambassadors at various colleges for the spring semester. All in all, their latest growth tactic, in the form of referrals, is an effective method to increase app downloads and the app will surely continue to grow as a result.

In the past, TiKTok has relied on viral sensations like “Old Town Road” to encourage app downloads. In fact, ‘Old Town Road’ may be the first clear example of TikTok turning a song into a meme, then into a smash hit. Lil Nas X’s success story highlights how talented artists are using TikTok to grow a fanbase and promote their music.

TikTok’s new growth strategy does have several drawbacks. Firstly, users have been experiencing technical issues when using the app. In some cases, users have reported that they have been unable to use the rewards system efficiently and feel that the brand has not successfully resolved issues that have arisen. Also, it is still unclear exactly how many points users will earn from each referral. Most importantly, the rewards system doesn’t always work, according to three TikTok users who recently tested it.

Overall, this is a great growth strategy for TikTok to implement as most individuals would love to receive rewards for partaking in an entertaining and amusing app. However, in order for this growth strategy to function, it is important for TikTok to finetune the rewards system and ensure that it runs smoothly for all users.

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