How to do a referral program for a Saas product?
Billy Hoang
11 replies
Has anyone done a referral program on a prelaunch product? Did you pay users to refer other users or give discounts? Also how did you implement the program?
Replies
Maxim Dementev@madmaxd
Hey Billy!
I would say, first, you need to identify the target audience that might be interested in participating in the affiliate program. It could be a quite broad audience, ranging from your current users to unexpected categories. I implemented a referral program in a logistics startup, and its participants included current clients, drivers, car dealers, tire dealers, maintenance stations, IT specialists for accounting integration, and so on.
After selecting categories, it's good to conduct a small customer development. You need to understand what value you can provide to the participants of the referral program, making them want to use it, and what benefits (in terms of referred clients and money they will pay you) they can provide to you.
Based on the results of customer development, calculate whether it's profitable to offer the same conditions to everyone or if it's better to apply different conditions depending on the category.
In summary:
Brainstorm to identify participant categories;
Conduct customer development;
Calculate the lifetime value of referred clients and determine conditions;
After some time, adjust the conditions if necessary (just make sure to inform participants in advance that you might do so).
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@madmaxd thanks for sharing it's really great, but you touch only one type of referral programs. Based on your description you goal was to grab prospects from non-competition businesses. Maybe you also have an experience if referral programs inside the Saas, when we are trying to promote our existing customers to recommend us to their friends. If yes, please share? it's another big and interesting part personally for me
@kgrebenjukov Yes, of course. I mentioned that in that program, we also offered customers to recommend us in exchange for free use of the application for a certain period.
Regarding SAAS, and if we delve into how to persuade current customers to make referrals, there are two types of motivation, much like with employees:
monetary
non-monetary.
The first one is clear – offer discounts for referrals, provide free service for a certain period, give bonuses in your service or a partner service, and don't forget about special conditions for those they refer. In some cases, you can even implement a multi-level referral program, similar to MLM systems.
For the second type, a vivid example is badges and internal rewards. Gamification works very well. It involves highlighting the best in special posts, reposting user stories - things that boost self-esteem.
However, for all of this to work, your customers must genuinely love your service, appreciate your technical support, then they will naturally become ambassadors. It's quite possible that they'll recommend your service without any conditions - that's the coolest and most challenging scenario.
To create a referral program for a SaaS product:
1. Define Incentives: Offer appealing rewards for referrers and new customers.
2. Simplify Process: Make the referral process easy with clear instructions.
3. Promote Widely: Market the program through email, social media, and within the SaaS product.
4. Track and Reward: Implement a tracking system for monitoring referrals and timely rewards.
5. Leverage Automation: Use tools to streamline the referral process and manage rewards efficiently.
6. Monitor and Optimize: Regularly assess performance, gather feedback, and make adjustments for optimization.
Hi Billy, we recently launched a referral program for a leading global SaaS, and here’s my two cents:
1. Define rewarding perks – schemes differ; internal perks or partner perks may be needed based on the app.
2. Ensure the referral program is prominently featured on your app, especially during key user interactions like sign-ups, successful actions, or milestones. Make it seamlessly visible to maximize engagement.
3. Count only meaningful actions by referred users for successful referrals.
4. Opt for referral software; biased but Gameball is worth checking out! :)
Let me know if I can help
Launching soon!
I would look into affiliate marketing as a whole and do a bit of a deep dive there. First promoter / impact.com / JVZoo / Clickbank etc. Lots of ecosystems where people make their careers off promoting products.
Are you asking for referral program on a *prelaunch* product, that means that product doesn't exist and you don't have real customers and only people in white-list. If my understanding of the task is correct I think it's very-very hard task. I believe that the key of referral program is good customer experience that doesn't exist on unlaunched product. If you have at least MVP that customer could try, it will be completely another story