Uber ignited a consumer frenzy yesterday when it doubled its referral reward in a bid to fight back competition from Lyft.
This is a massive shift. For Uber, referrals are now not only a tool in its marketing arsenal, but the tip of the spear. A tactic that three years ago was a niche proposition is now dominant.
Would you do the same in Uber’s shoes? If a competitor with an intruiging value proposition started challenging your business, would your instinct be to amp up your referral program? Or would you spend more on Google, and post more on Facebook?
Think about it.
What if one of your competitors changed its referral program to compete against you? Could you react? Uber is coming at Lyft, and now Lyft will have to choose how it will respond.
There is a new battleground in marketing. Be prepared.