User Research

A robust user research phase was critical for understanding the needs, motivations, and concerns of Lummo’s merchants, as well as ensuring the referral program design would resonate with them. Given the diversity of merchants on the platform, our research aimed to identify the specific incentives that would drive participation and the barriers that might deter them. This phase also included detailed testing of our referral flows to refine the experience based on real user feedback.

In-Depth User Interviews

Conducted with 20 Lummo merchants, selected based on their engagement levels on the platform and business types, ensuring a diverse sample that included small, medium, and high-volume sellers.
Focus: Understanding motivations, past experiences with referrals (if any), and expectations around the reward structure. Additionally, the interviews explored merchants' previous experiences with other platforms' referral programs.

Competitor Benchmarking & Analysis

To build a referral program that would stand out in a highly competitive market, I conducted an in-depth benchmarking analysis, examining referral programs from leading platforms within and outside our industry. I focused on both direct and indirect competitors in the e-commerce and B2B space, as well as companies with successful referral mechanisms.

Each of these competitors had attempted various referral strategies, but none had effectively integrated features that aligned with our user-centric goals. Hence, these are the summary of the findings:

• Discovery
  Positioning the referral program as one way to gain more monetary benefits would be appealing.
• Education
  State clearly what referrer and referee need to do, separate the how-to if possible. Use illustration like short text and images or short video would help user.
• Incentives
  Apply continuous rewards for referrer based on referees progress to maintain the merchant to merchant communications.
• Re-engagement
  Provide information about each of the referee status from the very first step until the end point where referrer can get their incentive. This will help referrer to track the progress of their referrals.

User Journey Mapping

We designed the user journey to ensure easy access and engagement at various touchpoints. On the homepage, first-time visitors see a referral icon and a banner introducing the program, while returning users are provided with a direct link, reducing unnecessary repetition. In the Account Page, merchants get a quick summary of their referral progress, displaying the total number of referrals, successful activations, and rewards earned, with a clear call-to-action link to encourage further participation. To maximize engagement, an activity-based pop-up appears when merchants process a high number of transactions in a day, prompting them to invite others to join the program.

The core of the experience is the Referral Page, where merchants can easily navigate through the program. It includes a simplified guide on how to refer, a shareable referral link, and real-time referral status updates that show progress and rewards. This journey effectively integrates reminders and incentives at key moments, helping to drive continuous engagement and make the referral experience rewarding and seamless.

Wireframing

In the initial wireframing phase, we focused on designing a user journey that would feel seamless and intuitive for merchants, helping them understand and engage with the referral program quickly. The wireframes aimed to clearly outline each step of the referral process while maintaining a user-friendly interface.

Key screens included the homepage with the referral banner, the achievement pop-up to celebrate high transaction activity and convert it to referral attempts, and the main referral page detailing the programs rewards and tracking features. celebrate high transaction activity and convert it to referral attempt

User Testing

We round of user testing focused on validating both the user journey and specific features. Our primary goals were to assess how easily users could understand the referral process, share their referral link, and track their progress and rewards. Additionally, we wanted to ensure that the design communicated the value of the program effectively, motivating merchants to participate.

We recruited a diverse group of merchants with varying levels of familiarity with digital tools, aiming to cover a range of technical proficiency levels. The testing involved both guided and unguided tasks, allowing us to observe users as they navigated the referral program independently.

• Clarity in Messaging
  Some users were initially unsure about the benefits and mechanics of the referral program. Based on this feedback, we refined the messaging on the referral page, using simple language and visual aids (icons and step-by-step diagrams) to clarify how the program worked and the rewards they could earn.
• Simplifying the Reward Tracker
  Users found the referral history section useful but wanted clearer labels for the referral stages (in progress, successful, failed). We improved the layout by adding status indicators and brief explanations for each referral stage, making it easier for users to track their referrals at a glance.
• Ease of Access
  Testing revealed that the pop-up notification triggered by transaction milestones was highly effective in driving engagement. However, some users suggested having additional reminders.