What is the best way to achieve massive growth without spending tons of money on ads? Word of mouth. But convincing customers to spread the word is no walk in the park. One of the best ways to encourage more word of mouth sharing from customers is to create a customer referral program. Take Dropbox as an example. They famously went from 100,000 users to 4 million users in just over a year thanks almost entirely to their referral program, which provided referring users (and their newly invited friends) with extra storage on their platform. In their most basic form, referral programs are just a set of incentives that encourage customers to invite people to use your product or service. But, you need to be able to keep track of who refers who, as well as how many referrals someone makes if you want to effectively scale your incentive program. Though it might sound complex, it's actually very easy to create your own referral program with basic tools that you're probably already using. This article will show you how ListFlow, an early stage SaaS startup, used their email marketing/marketing automation tool's API and standard features to create a customized referral program for their business without paying a dime. Article contains link to source code GitHub repository.
<p>Customer referrals are are among the most sustainable and cost effective ways to grow a business. Referral marketing is the process of proactively managing and accelerating customer referrals. Referrals can be accelerated by prompting customers to share at points of delight within your product and making it very easy to share. A/B testing prompts and sharing steps can help you optimize your referral rates. An NPS (net promoter score) survey is a good way to assess the likelihood that someone is willing to share your product. While referrals are largely a function of customer delight for a product, some product categories are more likely to drive referrals than others. An example of a category that would likely have a low referral rate would be adult diapers, because people may be too embarrassed to admit to using them.</p>
Join over 70,000 growth pros from companies like Uber, Pinterest & Twitter