Dan McGaw, Director of Marketing at KISSmetrics
3 Steps to Creating Exponential
Growth using Referral Campaigns
Who am I ?
@thuelmadsen!
Who am I ?
@danielmcgaw!
Join me on Twi er
@danielmcgaw #KISSwebinar
Join me on Twi er
@thuelmadsen #KISSwebinar
WATCH WEBINAR RECORDING NOW
Typical ways a potential customer
will hear about your business.2
Your business is calling, advertising,
marketing or emailing potential customers.
1
Customers are acting on your behalf to tell
people about your business and services
2
Customers are acting on your
behalf to tell people about your
business and services
21
Your business is calling,
advertisi...
.4% 1.6%
Customers are acting on your
behalf to tell people about your
business and services
Your business is calling,
adv...
.4% 1.6%
Customers are acting on your
behalf to tell people about your
business and services
Your business is calling,
adv...
Obviously we are gonna talk
about number
2
The act of referring someone or something for
consultation, review, or further action.
Referral definition
The act of referring someone or something for
consultation, review, or further action.
Referral definition
Also known as wo...
Doesn't ma er what you call it
Dropbox
Dropbox
100k registered users to 4M registered users in just 15 months.
That’s a 3900% growth!
Things we need to crack the code
of referral conversions
3
1
2
Table of Contents
3
Happy Customers
Reciprocal Incentives
Reproduction
Happy Customers1
Product Market Fit
Segmentation
Highest LTV
Segmentation
Highest LTV
Large Social
Following
Segmentation
Highest LTV
Large Social
Following
In Target
Vertical
Segmentation
Highest LTV
Large Social
Following
In Target
Vertical
Low Support
Ticket Volume
Segmentation
Highest LTV
Large Social
Following
In Target
Vertical
Low Support
Ticket Volume
Engaged User
Segmentation
Highest LTV
Large Social
Following
In Target
Vertical
Low Support
Ticket Volume
Engaged User
Located in
Target Region
Segm...
Highest LTV
Large Social
Following
Located in
Target Region
In Target
Vertical
Low Support
Ticket Volume
Engaged User
Prod...
LOG IN WITH GOOGLE
Start Your Free KISSmetrics Trial
Reciprocal Incentives2
Reciprocal Incentives
Free download
Reciprocal Incentives
Free download
Free for limited time
Reciprocal Incentives
Free download
Free for limited time
Promotional item
Reciprocal Incentives
@danielmcgaw #convconf
Free download
Free for limited time
Promotional item
Large discount
Reciprocal Incentives
Free download
Free for limited time
Promotional item
Large discount
Additional Storage
Reciprocal Incentives
Free download
Free for limited time
Promotional item
Large discount
Additional Storage
Points
Reciprocal Incentives
Free download
Free for limited time
Promotional item
Large discount
Additional Storage
Points
Cash
Reciprocal Incentives
Code School Example
Hall Pass Campaign
Two days free if you did
not become a paying
member in first 7 days.
!
!
!
!
Code School Example
Hall Pass Campaign
Two days free if you did
not become a paying
member in first 7 days.
Get 2 additiona...
Hall Pass Campaign
Two days free if you did
not become a paying
member in first 7 days.
Get 2 additional days for
every fri...
Reproduction3
Basic Reproduction Number
http://en.wikipedia.org/wiki/Basic_reproduction_number
Basic Reproduction Number
R = ?
Disease Transmission
Measles 12–18
Smallpox 5–7
Polio 5–7
HIV/AIDS 2–5
SARS 2–5
Influenza 2...
Basic Reproduction Number
R = 3
Basic Reproduction Number
R = 3
R = 3
Basic Reproduction Number
R = 3
Basic Reproduction Number
R = 3
Basic Reproduction Number
R = 3
Basic Reproduction Number
1 user turns into 130 users at an R3 in 30 days.
Accomplishing an R3
Delivery Methods
Text message
In Application
Email
Social media
In text
In text
In text
In text
Grew by 1,000,000 users per week
In application
In application
In application
In application
In email
Activation email
In email
Activation email
In email
Activation email Reproduction email
In email
Activation email Reproduction email
In social media
Landing page
Traffic
Traffic doubled every month
Traffic
$25 Conversion
$9 Follow up conversion
$9 Follow up conversion
$9,000 investment returned last click a ribution of
$122,280 in 17 months.
$9 Follow up conversion
Total estimated return over $500,000 in 17 months.
55x Return on investment!
Bonus Section+
What are the biggest killers?
What are the biggest killers?
What are the biggest killers?
What are the biggest killers?
THANK YOU
Hiring a Product
Marketer!
dan@KISSmetrics.com
Questions?
@danielmcgaw
Director of Marketing
KISSmetrics
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3 Steps to Creating Exponential Growth using Referral Campaigns

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Typical ways a potential customer will hear about your business.
Your business is calling, advertising, marketing or emailing potential customers.
Customers are acting on your behalf to tell people about your business and services 21 Your business is calling, advertising, marketing or emailing potential customers.
.4% 1.6% Customers are acting on your behalf to tell people about your business and services Your business is calling, advertising, marketing or emailing potential customers.
That’s 400% more conversions!
The act of referring someone or something for consultation, review, or further action. Referral definition Also known as word of mouth
Doesn't matter what you call it
Dropbox 100k registered users to 4M registered users in just 15 months. That’s a 3900% growth!
Things we need to crack the code of referral conversions
Happy Customers
Product Market Fit
Segmentation
Highest LTV Large Social Following Segmentation
Highest LTV Large Social Following In Target Vertical Low Support Ticket Volume Engaged User Located in Target Region Segmentation
Reciprocal Incentives
Free download
Free for limited time Promotional item Large discount Reciprocal Incentives
Reciprocal Incentives
Cash Reciprocal Incentives
Code School Example Hall Pass Campaign Two days free if you did not become a paying member in first 7 days. ! ! ! !
Code School Example Hall Pass Campaign Two days free if you did not become a paying member in first 7 days. Get 2 additional days for every friend who activates a Hall Pass because of you ! ! !
Hall Pass Campaign Two days free if you did not become a paying member in first 7 days. Get 2 additional days for every friend who activates a Hall Pass because of you ! ! ! 60k registered users to 600k registered users in just 17 months. That’s 10x growth! Code School Example
Basic Reproduction Number http://en.wikipedia.org/wiki/Basic_reproduction_number
Basic Reproduction Number R = 3
R = 3 Basic Reproduction Number 1 user turns into 130 users at an R3 in 30 days.
Accomplishing an R3 Delivery Methods Text message In Application Email Social media
In text
In text Grew by 1,000,000 users per week
In application
In email Activation email
In email Activation email Reproduction email
In social media
Landing page
Traffic
Traffic doubled every month Traffic
$25 Conversion
$9,000 investment returned last click attribution of $122,280 in 17 months.
Total estimated return over $500,000 in 17 months. 55x Return on investment!
Bonus Section+
What are the biggest killers?

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3 Steps to Creating Exponential Growth using Referral Campaigns

  1. 1. Dan McGaw, Director of Marketing at KISSmetrics 3 Steps to Creating Exponential Growth using Referral Campaigns
  2. 2. Who am I ? @thuelmadsen!
  3. 3. Who am I ? @danielmcgaw!
  4. 4. Join me on Twi er @danielmcgaw #KISSwebinar
  5. 5. Join me on Twi er @thuelmadsen #KISSwebinar
  6. 6. WATCH WEBINAR RECORDING NOW
  7. 7. Typical ways a potential customer will hear about your business.2
  8. 8. Your business is calling, advertising, marketing or emailing potential customers. 1
  9. 9. Customers are acting on your behalf to tell people about your business and services 2
  10. 10. Customers are acting on your behalf to tell people about your business and services 21 Your business is calling, advertising, marketing or emailing potential customers.
  11. 11. .4% 1.6% Customers are acting on your behalf to tell people about your business and services Your business is calling, advertising, marketing or emailing potential customers.
  12. 12. .4% 1.6% Customers are acting on your behalf to tell people about your business and services Your business is calling, advertising, marketing or emailing potential customers. Thats 400% more conversions!
  13. 13. Obviously we are gonna talk about number 2
  14. 14. The act of referring someone or something for consultation, review, or further action. Referral definition
  15. 15. The act of referring someone or something for consultation, review, or further action. Referral definition Also known as word of mouth
  16. 16. Doesn't ma er what you call it
  17. 17. Dropbox
  18. 18. Dropbox 100k registered users to 4M registered users in just 15 months. That’s a 3900% growth!
  19. 19. Things we need to crack the code of referral conversions 3
  20. 20. 1 2 Table of Contents 3 Happy Customers Reciprocal Incentives Reproduction
  21. 21. Happy Customers1
  22. 22. Product Market Fit
  23. 23. Segmentation
  24. 24. Highest LTV Segmentation
  25. 25. Highest LTV Large Social Following Segmentation
  26. 26. Highest LTV Large Social Following In Target Vertical Segmentation
  27. 27. Highest LTV Large Social Following In Target Vertical Low Support Ticket Volume Segmentation
  28. 28. Highest LTV Large Social Following In Target Vertical Low Support Ticket Volume Engaged User Segmentation
  29. 29. Highest LTV Large Social Following In Target Vertical Low Support Ticket Volume Engaged User Located in Target Region Segmentation
  30. 30. Highest LTV Large Social Following Located in Target Region In Target Vertical Low Support Ticket Volume Engaged User Product Market Fit Segmentation
  31. 31. LOG IN WITH GOOGLE Start Your Free KISSmetrics Trial
  32. 32. Reciprocal Incentives2
  33. 33. Reciprocal Incentives
  34. 34. Free download Reciprocal Incentives
  35. 35. Free download Free for limited time Reciprocal Incentives
  36. 36. Free download Free for limited time Promotional item Reciprocal Incentives @danielmcgaw #convconf
  37. 37. Free download Free for limited time Promotional item Large discount Reciprocal Incentives
  38. 38. Free download Free for limited time Promotional item Large discount Additional Storage Reciprocal Incentives
  39. 39. Free download Free for limited time Promotional item Large discount Additional Storage Points Reciprocal Incentives
  40. 40. Free download Free for limited time Promotional item Large discount Additional Storage Points Cash Reciprocal Incentives
  41. 41. Code School Example Hall Pass Campaign Two days free if you did not become a paying member in first 7 days. ! ! ! !
  42. 42. Code School Example Hall Pass Campaign Two days free if you did not become a paying member in first 7 days. Get 2 additional days for every friend who activates a Hall Pass because of you ! ! !
  43. 43. Hall Pass Campaign Two days free if you did not become a paying member in first 7 days. Get 2 additional days for every friend who activates a Hall Pass because of you ! ! ! 60k registered users to 600k registered users in just 17 months. That’s 10x growth! Code School Example
  44. 44. Reproduction3
  45. 45. Basic Reproduction Number http://en.wikipedia.org/wiki/Basic_reproduction_number
  46. 46. Basic Reproduction Number R = ? Disease Transmission Measles 12–18 Smallpox 5–7 Polio 5–7 HIV/AIDS 2–5 SARS 2–5 Influenza 2–3 http://en.wikipedia.org/wiki/Basic_reproduction_number
  47. 47. Basic Reproduction Number R = 3
  48. 48. Basic Reproduction Number R = 3
  49. 49. R = 3 Basic Reproduction Number
  50. 50. R = 3 Basic Reproduction Number
  51. 51. R = 3 Basic Reproduction Number
  52. 52. R = 3 Basic Reproduction Number 1 user turns into 130 users at an R3 in 30 days.
  53. 53. Accomplishing an R3 Delivery Methods Text message In Application Email Social media
  54. 54. In text
  55. 55. In text
  56. 56. In text
  57. 57. In text Grew by 1,000,000 users per week
  58. 58. In application
  59. 59. In application
  60. 60. In application
  61. 61. In application
  62. 62. In email Activation email
  63. 63. In email Activation email
  64. 64. In email Activation email Reproduction email
  65. 65. In email Activation email Reproduction email
  66. 66. In social media
  67. 67. Landing page
  68. 68. Traffic
  69. 69. Traffic doubled every month Traffic
  70. 70. $25 Conversion
  71. 71. $9 Follow up conversion
  72. 72. $9 Follow up conversion $9,000 investment returned last click a ribution of $122,280 in 17 months.
  73. 73. $9 Follow up conversion Total estimated return over $500,000 in 17 months. 55x Return on investment!
  74. 74. Bonus Section+
  75. 75. What are the biggest killers?
  76. 76. What are the biggest killers?
  77. 77. What are the biggest killers?
  78. 78. What are the biggest killers?
  79. 79. THANK YOU
  80. 80. Hiring a Product Marketer! dan@KISSmetrics.com
  81. 81. Questions? @danielmcgaw Director of Marketing KISSmetrics
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