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4 Successfully SaaS -y Businesses Using Referral Programs


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See how SaaS companies are implementing referral programs to grow their businesses.

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4 Successfully SaaS -y Businesses Using Referral Programs

  1. 1. 4 Successfully SaaS-y Businesses that are Using Referral Programs
  2. 2. •  Referral  programs   spread  the  word  and   grow  your  business   inexpensively   •  Referral  programs  obtain  high   customer  acquisi;ons  by   capitalizing  on  the  trust  of   already  formed  rela;onships •  Referral  programs   avoid  high  churn   rates  by  obtaining   quality  customers   from  referrals Why SaaS businesses rely on referral programs for success?
  3. 3. 4 Successful SaaS Businesses with Referral Programs
  4. 4. Why Uber’s Referral Program Succeeded •  Uber  understood  the  frustra;on   the  public  had  with  inadequate   taxi  services •  Uber  got  their  first  customers   through  sponsorship  of  events  by   providing  free  rides  to  a?endees   with  the  inten;on  of  capitalizing   on  the  happy  customer’s   experience •  Uber  offered  double  incen;ves   with  $20  for  making  a  referral  and   $20  to  the  referral
  5. 5. •  95%  of  all  users  heard  about  Uber   through  a  referral •  The  San  Francisco  division   con;nues  to  grow  3x  per  year •  The  New  York  division  con;nues   to  grow  4x  per  year •  The  London  division  con;nue  to   grow  5X  –  6X  per  year Uber’s Results
  6. 6. Why Dropbox didn’t use traditional marketing •  The  consumer  environment  was   hos;le  with  a  great  number  of   compe;tors •  Adver;sing  was  too  expensive  and   ineffec;ve
  7. 7. Why Dropbox’s Referral Program Succeeded •  Dropbox  offered  double  incen;ves   to  advocates  and  referrals •  500mb  was  given  upon  a   successful  referral  signup •  Referring  was  made  easy  through   email,  social  media,  and  URLs  
  8. 8. Dropbox’s Results •  Signups  grew  from  100  thousand   to  4  million  in  just  15  months  from   the  referral  program •  The  increase  in  referrals  equals  a   3900%  growth •  The  referral  program  permanently   increased  signup  by  60%  
  9. 9. Why Airbnb’s Referral Program Succeeded •  Airbnb  offers  double  incen;ves  with   $25  travel  credit  to  the  advocate  and   referral  upon  comple;on  of  the   referrals  first  trip. •  Hosts  also  have  a  chance  to  par;cipate   with  double  incen;ves  of  $75  travel   credit  for  the  advocate  and  the  referral   upon  comple;on  of  hos;ng  their  first   visitor •  Airbnb  made  it  easier  for  advocates  to   refer  with  social  sharing  and   personalized  URLs •  Airbnb  acknowledge  the  necessity  of   referral  tracking  and  a/b  tes;ng  to   op;mize  the  referral  program
  10. 10. Airbnb’s Results •  Signups  and  bookings  increased  by   300%  per  day •  Referrals  delivered  900%  year-­‐on-­‐year   growth  for  1st  ;me  bookings
  11. 11. Why FreeAgent’s Referral Program Succeeded •  Free  Agent  offers  double  incen;ves   with  10%  off  the  monthly  subscrip;on   perpetually  for  advocates  and  referrals •  10%  con;nues  to  be  taken  off   perpetually  for  advocates  with  each   referral  as  long  as  the  subscrip;on  lasts   •  If  the  advocate  refers  10  las;ng  referral   subscrip;on  they  can  achieve  100%  off   their  subscrip;on   •  Sharing  methods  were  made  easy   •  The  referral  program  naturally  created   virality  
  12. 12. FreeAgent’s Results •  FreeAgent  saw  a  60-­‐70%  increase  in   conversions  for  trialists  that  are   referred   •  They  saw  a  great  increase  in  people’s   willingness  to  share •  FreeAgent  was  successful  when  star;ng   out  but  a  referral  program  increased   their  numbers  drama;cally
  13. 13. Take Away One  of  the  surest  ways  to  succeed  in  demand   genera;on  is  to  never  become  complacent  with   your  results.  These  four  SaaS  companies  prove   that  whether  tradi;onal  methods  of  marke;ng   are  failing  you  or  you’re  looking  to  increase  your   already  growing  customer  base,  referral   programs  deliver  amazing  results.  By  honing  in   on  your  happy  customers  and  capitalizing  on   their  previously  formed  rela;onships  you’ll   capture  not  only  a  greater  quan;ty  of  quality   leads,  but  also  bypass  the  main  challenges  SaaS   companies  are  up  against.  
  14. 14. Are referrals right for you? Take our 10 question quiz to see if referrals will work for you.! Take the Quiz