Testing out cash referrals 💵

(Alex Sherwood) #70

Yeah Nationwide is the exception but I think it’s a bad sign that they have to pay that much. Monzo’s valuable enough for the incentive not to have to be that high.

I don’t like the idea of using interest rates to attract people because once the promotion ends, the rate’s taken away. So it’s typical of the kind of bait & switch (relying on customer inertia) that we see the banks using to attract customers.

As the challengers get bigger (with their easy signup processes), I expect that relying on customer inertia for your marketing campaign will become a more & more flawed strategy.

Monzo switching bonus

I think you’re right for sure, but whether thats the correct decision is questionable.

The time to push is now while the legacy banks are still behind. They are very aware of challenger banks like Monzo and are pushing to update their services. Every month the list of reasons to switch goes down as a Legacy bank adds a Monzo feature to their app and so on.

It’s all about the cost of acquisition per user. A TV ad may cost more, but it will probably bring in a lost more users bringing that cost per user down significantly (I would guess less than £10 but obviously I have no idea).

(Harry) #72

Hmm. I’m torn on this idea. If I had the option to test this then sure I would go for it for the extra £5 here and there but I don’t think it’s going to bring in users who will really want to use Monzo, especially as their main account.

I would say that advertising and promoting CASS with some kind of financial reward (like a boosted interest rate for a while) if you complete a full switch and stay for x amount of months…

(Alex Sherwood) #73

I don’t agree with this premise. I expect the gap between the incumbents & Monzo will widen, as they continue to develop their service far more quickly & also, roll out the marketplace.

I don’t think it will cost that little per user but I could be wrong. If it did then I’m all for it.


Agreed! (For the avoidance of doubt, I haven’t suggested that Monzo should pay anything as an incentive, let alone figures that high!)

I think this is a fair point. Although I’m not sure it’s completely accurate to call it bait and switch if users know in advance it’s only for a limited period - it might be different understandings but I’ve only ever used it where it’s not been clear that the feature will disappear. Anyway, I understand the concern, which I think is a valid one.

More broadly, I wonder if there are any other options? I liked the interest idea as it seemed to me to make the user base more sticky - i.e. they wouldn’t just take the money and run - which would give them time to experience the product and want to stay for its own merits… Is there anything else that delivers benefit without the downsides identified?


I understand where you’re coming from here, but I think you’re assuming that Monzo is standing still while the established banks catch up. I don’t think this is true - Tom puts it better than me:

From this post, for reference.


Oh for sure, don’t get me wrong, I agree they aren’t standing still. But I do think each new feature has a lot less worth than the ‘core’ features monzo already has e.g. freeze card, see pin in app, instant notifications, spending summary,

Everything else while nice, Isn’t going to be as big a draw in to convince people to switch e.g. split the bill feature. These will still give monzo the edge but isn’t going to make someone think wow sign me up right now!

(Alex Sherwood) #77

The team have told me that the P2P payments feature has actually been one of the biggest drivers of Monzo’s growth, bill splitting only makes it more useful :man_shrugging:


I have no evidence to back this up, but my suspicion is that by focusing on how Monzo works for groups of people (the network effect) we’re likely to see a tipping point over the next year or so where peer pressure / personal recommendation / sheer ease of use within a network makes it harder to not be on Monzo… (there have been similar experiences when apps like WhatsApp, for example, broke through…)

(Sacha) #79

I wonder if Monzo’s considered promoting themselves at Freshers’ Fayres? Given the network benefits of Monzo it seems like an ideal place to promote the bank, particularly as people won’t have the inertia that comes from holding a legacy bank account for years and years previously.


I think when Monzo first started they had student ambassadors. It didn’t seem to go anywhere, though…

(Ah yes, slightly mysterious thread here)

(Emma (still not the app)) #81

Against banks with £3k free overdrafts and freebies?

(Jordan Fish) #82

We can monitor if this happens and we can stop offering this – it’s one of the things we’ll monitor in the trial.

We’ve tried this recently :wink: it’s an ongoing test with golden tickets for some small amount of customers.

This will of course be a continued focus. We do not see it as a “one or the other” type of function. There is an effort to perpetually improve the core value of Monzo, and a parallel effort to introduce people to that core value as quickly/often as possible. I see the two as super-charging each other when they are both done right.

Yep, we’re more than open to trying new things to figure out what works and what doesn’t.

Let’s find out! We’re open to it not working too. I think you have to approach these things with an open mind that 60% of the stuff you’ll try will not work, but you will use that learning to rebase and inform your future efforts.


Thanks for the comprehensive feedback - much appreciated!

I was especially taken by this section - needs to be shouted more generally, so big kudos: :raised_hands:

(Alex Sherwood) #84

I wonder whether Monzo could incentivise users to recommend / show off the service more indirectly e.g. if you split the bill with a non-Monzo user (using Monzo.me), Monzo will give you ~2% of the bill back in cash. Maybe that’d be too expensive though..

Alternatively, have you thought about sharing some of the referral incentive with the people who referred the referrer. So I refer a friend & get £5, they refer a friend & I get £1 of their £5 referral reward :upside_down_face:

The structure would look something like this:

                  friend £££££
              |             |
           friend 2 £    friend 3 £

(Jordan Fish) #85

This sort of looks like a pyramid scheme Alex :wink:

(Alex Sherwood) #86

I prefer the term “multi-level marketing scheme” :wink: but I guess you’re right :pensive:

Seriously though, I really like what Cash App’s been doing (this might be too expensive at this stage too) -


I like your bill splitting idea, maybe say that you both get £5 off the bill if you join monzo when splitting.
But dear god don’t suggest pyramid schemes. I hope it was in jest and you forgot the /s.

(Alex Sherwood) #88

Yes I was joking :smile:


Phew, thought we had decended into chaos.