How to create a simple referral program to boost subscription

How to create a simple referral program to boost subscription

Step 1: Define what the referrer gets. it needs to be something tangible, either economic or altruistic. Then communicate it clearly. The what’s in it for me matters.

Step 2: Define Core Simple Metrics which matter

  • MAU’s sending invites - Numeric Goal
  • Invitees per inviter ( how many times does the same referee refer other people from his/her network)- Numeric Goal
  • Conversion Rate to new user- Numeric Goal

Step 3: Create taxonomy across the new user on-boarding journey. The taxonomy can be based on multiple events of the customer journey, example invitation sent, shared on social media and so on…

  • Log each event to a centralized backend database.
  • Build client libraries for each event across your web application, client application, iOS application and Android Application and log every event using the same taxonomy back into a single Rest ENDPOINT. (that gives you one single set of metrics to measure efficacy across platforms)

Step 4: Make it personal: Example: You ( with a nice picture of you)  have been nominated/ invited/ referred/ chosen and so on…

Step 5: Make the landing page experience different ( for those who come through the referral link ) to those who come from ( example google)- You can do this by using an analytical tool which fingerprints the user who clicks the referral link and then runs back the query when he/she downloads the page from the referral link. The moment it recognizes it runs this information into the database and shows a different custom landing page. Once again you make the person coming in feel special.

Step 6: Keep hacking to increase the MAU’s

  • Increase “#of invites per inviter” by offering imports of address books from email services or recommended contacts on the phone
  • increase “share of active users sending an invite” by improving the discoverability of referrals.
  • increase “conversion to new guest” by allowing referrers to send reminders to invited + signed up users

Step 7: Do constant A/B testing on invite messaging. Altruism works better in some cases.

Those who cannot or do not have the technical support or coding prowess, can always use services like ReferralCandy. They are quite good in creating white label referral marketing campaigns and honestly can save you a lot of time in creating bespoke tech.

Wonderful case study by AIRBnB here on how they increased their referrals through Word Of Mouth and some nifty engineering.

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