Orange Romania said it is rewarding Orange Money customers with RON 150.00 (US$34.39) when they bring a friend who also activates an account and makes at least one payment of at least RON 50.00 (US $1.46) by 13 March. They can choose to make a payment to a merchant, pay a utility bill, or make a currency transfer.
Once the account has been created, new customers can, in turn, generate and forward invitations from the app, thus being eligible to receive the bonus resulting from the recommendation. In addition, all users who activate their Orange Money account by 28 February can benefit from three welcome bonuses of RON 50.00 each if they meet all the conditions.
The 100 percent digital enrollment ensures that it takes just 10 minutes to become an Orange Money user. Moreover, Orange Money customers are not charged fees for opening and managing the account, for being issued the Classic debit card, for transfers within the country or abroad, for invoice payments or for cash withdrawals at ATMs.
Orange Romania’s bring-a-friend offer seems to be quite a persuasive one and is structured in such a way that it could have a larger effect than usual in terms of boosting membership and revenue.
Incentivizing existing subscribers by offering them a reward if they bring a friend into the operator’s ecosystem is of course an old tactic and an effective one at that. It is a tried and true method for increasing one’s subscriber base. In the case of Orange Romania, we are considering a campaign not for basic voice and data service but for mobile money, so that the functioning of the campaign depends not only on the user’s friend subscribing but also on actually making payments through the service—and not just any payment but a payment in a minimum amount. That should have the effect not only stimulating uptake of subscribers of but of stimulating an adequate amount of usage of the platform, which will drive revenue to the operator.
Added to this is the feature whereby a new subscriber (the “friend”) is able to invite friends of his or her own, who in turn may do the same, and so on. This would have the effect of creating a branching tree of invitations, with an accompanying multiplier effect on the number of new subscribers recruited thereby. And since each of those subscribers must make a purchase of at least RON 50.00, Orange will have a guaranteed revenue stream right away.