May 9, 2019

Use Short Trials & Extensions

2. Activation  >  Use Short Trials With Extensions

Use short trials with extensions to reduce SaaS churn

Offering short trials develop urgency and reduce your cost. Those who don’t convert after trial expiration, extend their trial to boost conversions and reduce churn. Offering extension works great because you get a chance to engage with users.

● PERSUASION

Kashflow

Kashflow increased trial to paying customer conversions by 25% after they reduced free trial duration from 60 days to 14 days.

Freshbooks

Freshbooks offers its active users an additional two weeks of free trial on expiration to keep them engaged.

Sleeknote

Sleeknote offers a free trial extension to partially inactive users but they have to implement tracking code to receive the extension.

How to use the technique

  • Research and decide an optimal trial length. Should it be 7, 14, 28, or 30 days? Refer to your ideal customers and ask them via surveys and interviews. Our churn optimization framework will show you how to collect data from your audience. 
  • Can users fully explore your software within the trial period? Don’t squeeze trial too much that users cannot explore all the features. It is best to offer 14 days trial as any software can be fully tried and tested in 14 days.
  • Create urgency. Short trials naturally create urgency. Customers will use your software to avoid expiration. Long trials aren’t persuasive as users get all the time to try it. This makes them churn because they forget about the app.
  • Convert a long trial into a short trial and add an extension. For instance, convert your 28 days free trial into 14 days trial. Offer users with another 14 days (or 7 + 7 days) trial as an extension. This will make them use your software.
  • Engage with the users when offering the extension. The majority of users won’t respond to emails but when you offer them an extension, most of them will respond positively. And that’s where you can initiate a conversation.
  • Bribe users with extension. Ask users to complete a specific task (step) in the customer journey to get a free trial extension. For instance, if they haven’t experienced Aha moment, ask them to complete it to enjoy an extension.
  • Test different trail durations. There are several variables that you should analyze empirically to come up with optimal trial length. Such as ease of use, sales cycle, customer lifecycle journey, average activation time, etc. We created an amazing free step-by-step churn optimization framework to help you get along with testing.

Mistakes to avoid

  • Lack of follow-ups. Sending an extension once isn’t enough. Follow up multiple times to ensure users don’t churn and opt for the extension.
  • No testing. A big mistake that SaaS makes is that they don’t measure and test the results of different trail variations. Test all changes you make to your free trial duration.

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> SaaS startups: Why your free trials are way too long

> How Long Should Your SaaS Free Trial Be? It Depends…

> SaaS Free Trial Extension Requests are a Bad Sign

> 8 Ways to Convert Free Trial Users Into Customers Through Email Marketing

Research evidence

Cheng, Li, and Liu developed an analytical model to examine different SaaS free trial strategies. The findings revealed that small and relatively new businesses should offer a time-locked free trial. The optimal length of a free trial depends on several internal and external factors, however, it is best for relatively new brands to offer time-locked free trials as it helps them increase profits. As your business grows, you can use short trials as it will perform better in terms of profitability.

<7 d.

As your business grows, short trials will perform better in terms of profitability. Small and relatively new businesses should offer a time-locked free trial.

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    May 9, 2019

    Run Retargeting Ads

    2. Activation  >  Run Retargeting Ads

    Run retargeting ads to reduce SaaS churn

    It always pays off (big time…) when you run retargeting ads to convert free trials into paid customers. Not just conversions, but these ads can be used to engage, reduce churn, and to persuade users to complete onboarding sequence.

    ● PERSUASION

    WordStream

    WordStream used retargeting ads to target visitors who visited a specific page on their website. It increased conversions by 51% and average visit duration by 300%.

    Lumension

    Lumension used retargeting to increase leads by 81% and 865% increase in homepage views.

    Baremetrics

    Baremetrics uses retargeting ads to bring visitors back to their website. They earn $650 for every $6. How’s that ROI?

    How to use the technique

    • Create a retargeting ad strategy. Define goals, create a user selection criterion, allocate budget, choose retargeting ad platform, and enable tracking. Take it seriously as any other marketing campaign. We have an awesome free churn optimization framework to help you get started.
    • Offer a discount. The best technique to reduce churn and to persuade free users to become customers is to offer them a discount on the upgrade.
    • Extend trial. Target users whose trial is expiring soon or has expired but they were active. Extend their trial. Add a few more days.
    • Invite to a webinar. Invite inactive users to a webinar with retargeting ads, so you can show them how useful your app is.
    • Persuade them to get over the phone. Let your sales team handle it. Target inactive users with an ad and convince them to schedule a call for personalized onboarding or guidance.
    • Get feedback. Run a retargeting feedback campaign. Ask users to share their feedback. Use their feedback to save future users from churning. Not sure how to do it? Grab this step-by-step churn optimization framework.

    Mistakes to avoid

    • Running a single retargeting campaign. One campaign means nothing. Create multiple campaigns to target the same or different users. A/B test. Improve and tweak.
    • Lack of personalization. Running retargeting ads that aren’t personalized will lead you nowhere. Target users based on their recent interaction with your software. If they didn’t complete the onboarding sequence, refer to it in the ad.

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    READ MORE ON THE TOPIC

    > How to increase free trials to paid customers with “onboarding retargeting”

    > 5 Ways to Onboard Free Trial Users With Retargeting

    > How Retargeting Gets Our SaaS $650 for $6

    > The Ultimate Guide To Retargeting Unconverted Visitors – How Retargeting Works

    Research evidence

    Adroit Digital and Toluna conducted an online survey to find how US online buyers perceive retargeted ads. Around 30% of respondents said that they either positively or very positively respond to a retargeted ad. However, the majority of the respondents (59%) said they have a neutral reaction to a retargeted ad. The neutral reaction doesn’t hurt your brand so it is a great idea to use retargeting ads to bring back consumers to your website.

    30%

    One third of users respond to retargeting ads positively. More than a half of respondents are neutral to those.

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    May 9, 2019

    Start An Online Community

    2. Activation  >  Start An Online Community

    Start an online community to reduce SaaS churn

    An online community is a great step towards reducing churn and increasing retention. It provides value to customers and they get to know your software better, and thus are more likely to stick.

    ● PERSUASION

    Mention

    Mention reduced churn by 22% by connecting and engaging with their users.

    Moz

    Moz is a perfect example of how to create a community that will grow itself. It has a forum, Q&A session, and uses Twitter to engage customers.

    Zendesk

    ZenDesk provides resources and articles to their audience. Its executives engage with customers on social media to keep them hooked.

    How to use the technique

    • Select the right platforms. There are several platforms to create and manage an online community. For instance, forum, knowledge base, resource center, YouTube channel, or a Facebook group or a third-party app. Ask your customers what they prefer. Inspect buyer personas. Use our free churn optimization framework to do research like a pro.
    • Send invitation. Invite new users who have achieved Aha moment with your app. Send email reminders. It’d be best to add an invitation link in onboarding sequence to make sure minimal users churn.
    • Engage the users. It’s all about engagement and building a community where your customers can network. It’s all up to you on how you develop the structure and culture of the community. Make it friendly and less formal.
    • Listen. The more your customers speak, the better. See what they're talking about, what their issues are, and what they love about your software. Constantly listen to conversations.
    • Share exclusive content. The best way to reduce churn is to share exclusive content (not found elsewhere) with your community. Make them feel special and important.
    • Learn and improve. You’d get a chance to learn a lot about your customers from an online community. The data you collect is priceless. Use it to tweak your app and update personas. We have created a step-by-step churn optimization framework that will show you how to use data practically. 

    Mistakes to avoid

    • Selling through online community. Using your community to sell, up-sell, or cross-sell will kill the sole of the community. Don’t use it sell. Use it for engagement and networking.
    • Not participating actively. Don’t ignore your community. Lack of participation from your end will ruin everything. Customers won’t take it seriously and lose their interest. Be proactive and participate in discussions.
    • Not integrating to your CRM. It’s all about data and information. Integrate your online platform with your CRM or email marketing tool to get better at segmentation and targeting.

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    READ MORE ON THE TOPIC

    > How to Increase Customer Retention with an Online Community

    > How Your Online Community Can Increase Customer Retention

    > Top 6 Ways to Improve Customer Retention using Online Communities

    Research evidence

    A Harvard study by Reicheld and Schefter highlights the importance of building online communities and the awesome benefits that businesses drive from them. A 5% increase in customer retention will increase profits by 25-95%. The best thing about an online community is that it increases customer retention by developing trust – which, according to the authors, is the ruling force on the internet. Over time, online communities create loyal customers who won’t leave you.

    95%

    Maximum threshold of how a 5% increase in retention could increase your profits according to a Harvard study.

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    May 9, 2019

    Host A Live Webinar

    2. Activation  >  Host A Live Webinar

    Host a live webinar to reduce SaaS churn

    Hosting a webinar to help users better understand your app and have their questions answered is a great way to boost engagement, increase conversions, and reduce churn. Interacting with your audience live is a different thing altogether.

    ● PERSUASION

    J_Turner_Research

    J Turner Research conducted a webinar with great numbers. It achieved a 756% ROI.

    Drip

    Drip hosts an event each year where they educate participants for free. It helps them boost engagement and get new customers.

    Leadpages

    Leadpages create 16+ webinars a month to acquire new signups and to reduce churn.

    How to use the technique

    • Set clear goals. What exactly you want to achieve with a webinar? What buyer persona will be targeted? Are you interested in reducing churn, increasing activation, or just doing it for brand awareness? Set clear goals for your webinar. Our free churn optimization framework will help you do it better. 
    • Have a plan. Create an action plan. Divide the webinar into different sections. Distribute time to present different sections. It is best to write plan on a paper.
    • Show participants how your app works. A webinar isn’t about you or your business rather it should be focused on how your software works. Show participants what they can do and how they can do it.
    • Explain the benefits users will get. What benefit participants will get from your software or once they activate? Why it’s necessary for them? Clearly explain all the benefits of installing and using the software.
    • Measure and track conversions. It is essential to measure the performance of your webinar. Results will guide you what changes you need to make to your strategy. Here is a free guide on mastering tracking.
    • Test and tweak. Are your video tutorials underperforming? They should be tweaked several times to make them work. Use our free churn optimization framework for help. 

    Mistakes to avoid

    • Hosting a webinar at the wrong time. At what customer journey stage you host a webinar makes a lot of difference. Carefully and strategically select the right time based on user stage in the flow mapping.
    • Not asking questions. Using a webinar to sell your app and share all the information about your brand and software won’t work. Take input from users. Ask questions. Take feedback. Use this information to create subsequent webinars.

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    READ MORE ON THE TOPIC

    > How To Achieve Successful Customer Onboarding with Webinars

    > How to reduce customer churn with webinars

    > How Leadpages & Drip Use Webinars to Reduce Churn, Generate Trials, and Increase LTV

    Research evidence

    Agnes carried out an in-depth experimental study to analyze how webinar impacts behavior and engagement of the participants. Webinar increased engagement of the participants, increase satisfaction, and it helped them feel more connected to other participants.

    ►

    Webinar increased engagement of the participants, as well as satisfaction and the feeling of attachement.

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    May 9, 2019

    Distribute Free Video Tutorials

    2. Activation  >  Distribute Free Video Tutorials

    Distribute free video tutorials to reduce SaaS churn

    Video tutorials are great at making it super-easy for new users to start using your app. Not only does a video tutorial will guide but it will keep users engaged and help them achieve success with your app quickly.

    ● PERSUASION

    Dropbox

    Dropbox increased conversions by 10% with an explainer video.

    Xero

    Xero has created engaging video tutorials for its users.

    Experience_Fellow

    ExperienceFellow has an animated video that explains the core features of the app to the new users.

    How to use the technique

    • Trigger emotions in the tutorial videos. Make it more than a tutorial. Hit pain points. Show how users can solve their biggest problem in a few seconds. Our free churn optimization framework has all the details on how to better understand your audience.
    • Show instead of telling. Don’t create tutorial videos to share features rather show how people can use your app. The idea is to help users, boost engagement, and reduce churn by making it dead simple to use your app.
    • Show screenshots. Show users actual app. Use screenshots. It is best to show a real person using your app.
    • Embed CTA. A video tutorial without a CTA won’t tell users what they're supposed to do after watching it. Thus, they will churn. Embed a powerful and compelling CTA in the tutorial.
    • Create short videos. Nobody likes watching long videos. It shouldn’t be longer than 120 seconds. Short videos are more likely to be shared.
    • Test and tweak. Are your video tutorials underperforming? They should be tweaked several times to make them work. Use our free churn optimization framework for help. 

    Mistakes to avoid

    • Using video tutorials as an alternative to onboarding. These are two different things and shouldn’t be mixed. The video tutorial cannot replace onboarding sequence.
    • Not publishing tutorials on streaming sites. Don’t make it hard for users to find tutorials. Distribute video tutorials on leading streaming sites. Share links in emails and on social networks.

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    READ MORE ON THE TOPIC

    > Why You Should Use Video In Onboarding Emails

    > Onboarding New Users With Video 

    > 20 Best Customer Onboarding Videos – EVER!

    > How To Reduce Churn At Various Stages Of Customer Journey With Videos?

    Research evidence

    Andreas and Sandra conducted an empirical study to understand consumer perception of explainer videos and how effective and efficient these videos are. The results revealed that consumers prefer watching videos over text because they can easily remember what they see as opposed to what they read. Around 71% of respondents in Germany and 47% in the US reported that they have watched explainer videos. Over 50% of people watch explainer videos for e-learning.

    71%

    This is how many of respondents in Germany reported that they have watched explainer videos.

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    May 9, 2019

    Send A Video Welcome

    2. Onboarding & Activation  >  Send A Video Welcome Message

    Send a video welcome message to reduce SaaS churn

    What’s better than sending a video welcome message to new users? Sending personalized welcome messages might be time-consuming but it will pay off. Users love them, stick with you, don’t churn, and activate quickly.

    ● PERSUASION

    Highrise

    Highrise sends extremely personalized welcome video messages to new signups.

    Ipsy

    Ipsy sends a welcome + onboarding video to new users. Not exceptionally personalized but it works great.

    How to use the technique

    • Use buyer persona to decide if a user likes video. Not all users prefer video content. Maybe, ask during the signup process if they’d like getting contacted via video. Not sure how to do it? Check out our free churn optimization framework.
    • Send a personalized video welcome message. Greet customers with their names. Make a new video for each user. This is the best technique to keep users engaged and to reduce churn rate.
    • Keep it short. Keep it under 30 seconds. Greet, inform, offer assistance, share your contact info, and close. This sequence is sure to keep users engaged.
    • Send immediately. The whole point of a welcome video is to welcome new users, so it has to be instant. Don’t delay it. Users will churn if you'll delay the welcome video.
    • Have a real person send it. Assign accounts to different team members. They can create a quick video from their phone or laptop wherever they're. Keep it real.
    • Explain what the user should do next. It is essential to let users know what action they should take after watching the video to move to the next stage of customer flow. Track actions and events, and follow up. Use our free churn optimization framework to get more details.

    Mistakes to avoid

    • Using a video template. No, you aren’t allowed to send the same video welcome message to all the new users. That’s not how it works.
    • Sending it too late. Delaying welcome video message can prove to be disastrous. If you cannot send a video, send an email. Do it quick.

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    READ MORE ON THE TOPIC

    > How we send onboarding welcome videos at Highrise

    Research evidence

    Teixeira, Wedel, and Pieters published an article in the Journal of Marketing Research that analyzed how videos engage users over the internet. They found that videos engage users by developing surprise and joy. Retaining viewers and grabbing their attention gets easier with video content.

    Love

    Videos engage users by developing surprise and joy. Personalized videos bring this to the whole new level. 

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    May 9, 2019

    Try To Set-Up A Call

    2. Activation  >  Try To Set-Up A Call With Users

    Try to set-up a call with users to reduce SaaS churn

    An early call gives a personal touch to user experience and it can prove to be a turning point. Talking to new users on the phone increases engagement and sales. You can tackle churn with just one call, it works.

    ● PERSUASION

    Intacct

    Intacct calls new users and send several emails without getting salesy.

    Groove

    Groove called 500 customers in 4 weeks which helped them tweak their onboarding process, increase engagement, and improve copy.

    New_Relic

    New Relic sends 10 emails and call 6 times for conversion.

    How to use the technique

    • Do your homework. Ask preliminary questions in the signup form. Have it with you during the call. Use buyer persona to make first interaction personalized. Our free churn optimization framework has more details for you. 
    • Use automatized software like Calendly to handle your schedule. You can then set-up availability to specific timeslots and handle all your weekly onboarding calls at once
    • Know what to ask to provide personalized experience. Prepare questions that you need to ask from new users. Don’t make first call too informal. Ask 2-3 relevant questions that will help you better understand the needs of the user.
    • Provide help. The first call isn’t about getting feedback rather it should be focused on providing assistance. Ask if the user needs any help? This improves engagement significantly.
    • Send a thank you email. End your call with a proper closing. Send a personalized thank you email with relevant information (related to the conversation). This is your best bet to reduce churn and increase the activation rate.
    • Feedback analysis is an essential part of the first call. The data you collect from all the calls needs to be analyzed. Use analysis for decision-making and for improving UX. Check out our free churn optimization framework to learn more on data analysis.

    Mistakes to avoid

    • Selling in the first call is really a bad idea. Don’t do it. Instead, let the user speak, take notes, and offer a customized solution.
    • Lack of personalization. Not using user’s personal information such as name, location, etc. in the conversation isn’t a good idea. Greet user with the name. Use relevant personal information to let users know you have done your work.
    • Explaining features. This call isn’t about your software features. It isn’t about the benefits either. It should be all about the user.

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    READ MORE ON THE TOPIC

    > 4 secrets to successful customer onboarding meetings

    > 5 Onboarding Strategies to Use on New Customer Calls

    > Customer Development for Startups: What I Learned Talking to 500 Customers in 4 Weeks

    Research evidence

    A study by James Oldroyd found that there is a massive difference in lead qualification percentage if you call after 5 minutes and 50 minutes. The results revealed that a lead is most likely to convert if you call within 5 minutes of sign up. If you call a lead within 10 minutes of sign up, the probability of conversion reduces 21x.

    21x

    This is how you reduce your chances for conversion if you don't call your leads within 5 minutes after the sign-up.

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    May 9, 2019

    Use A Self-Service Demo

    2. Activation  >  Use A Self-Service Demo

    Use a self-service product demo to reduce SaaS churn

    A product demo lets users explore your software without having to pay for it. This increases engagement, conversions, and reduces churn. It gets convenient for users to find how they can derive value from it.

    ●● INTUITIVENESS

    CoSchedule

    CoSchedule offers both a demo and a free trial. It gets easier for users to choose the option that’s right for them.

    Marketo

    Marketo offers a demo to its potential customers that’s highly personalized. They ask several details to make the experience personal.

    Bynder

    Bynder uses a self-service product demo that helps them increase the speed of sales.

    How to use the technique

    • Personalize the product demo. Not all users need your software for the same reason. Personalize demo based on persona. It doesn’t hurt to ask a few preliminary questions for optimization. Our free churn optimization framework has all the information you need to do research.
    • Identify key features. Prioritize core features of your app that deliver extreme value and start the demo with them. Ensure users don’t go without exploring core features. This will increase conversions and lower churn rate.
    • Add dummy data to make it easier for users to explore all the features. Don’t expect users that they will add their own data in a demo account rather make it a ready-to-use app.
    • Focus on benefits. Clearly show them how core features benefit them. A benefit-driven demo is more likely to activate users.
    • Offer in-app help. Self-service doesn’t mean you should leave them all alone. Offer all the support and help they need to stop them from churning.
    • Give access to the full version of your software. Let users explore every bit of your app. Don’t restrict them. That’s how you'll deliver value.
    • Track activation. Monitor success by tracking events including activation. Use this data for tweaks and for sending reminders. Tracking will become easier with our free churn optimization framework.

    Mistakes to avoid

    • Not offering support during the demo. It’s a big mistake that SaaS companies make. Users still need help. Self-service product demo doesn’t mean you don’t have to give support. Be available to offer help and guidance.
    • Not focusing on conversions. The purpose of the product demo is to persuade users to convert to a customer. If they don’t convert, follow up, get in touch, and try to address issues they're having.

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    READ MORE ON THE TOPIC

    > How a self-service product demo can save your SaaS free trial

    > How Bynder increased the speed of sales with a self-service product demo

    Research evidence

    According to SaaS Metric Report by Totango free trials are a common practice in the SaaS industry but they don’t always do well in terms of conversions. Only half of SaaS businesses that use free trials or freemium generate 25% of conversions. The product demo is an alternative that you might test if your application depends heavily on the entred data and free trials don't convert well.

    A/B

    The self-service product demo is a great alternative that you might test if free trials don't convert well for you.

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    May 9, 2019

    Use Concierge Onboarding

    2. Activation  >  Use Concierge Onboarding

    Use concierge onboarding to reduce SaaS churn

    Concierge onboarding is when you get in touch with users and offer them personalized guidance and suggestions. This type of onboarding is a great way to engage users, reduce churn, and increase conversions.

    ●● INTUITIVENESS

    Customer

    Customer.io doubled its conversion rate when it switched to concierge onboarding.

    Groove

    Groove sends its news users multiple messages in the inbox. As much as 80% of users convert to paid customers.

    Content_Marketer

    Content Marketer (now Mailshake) used manual onboarding to increase conversions. Around 55% of people who spoke to an agent converted.

    How to use the technique

    • Understand your audience at a persona level. Does your ideal customer prefer a personal touch? What are the buyer personas that you should target? Having a clear understanding of your audience’s needs and expectations upfront will help you create a better concierge onboarding experience. Check our free churn optimization framework to get started. 
    • Send a welcome email and introduce your concierge onboarding experience. Give users a brief overview, and tell them they will get a personalized experience. This is for engagement and to reduce churn.
    • Ask users how they prefer to get in touch. Not all users like talking on the phone. Give them different options (email, live chat, phone, etc.).
    • Encourage users to get on the phone. In order to create a perfect human experience, encourage users to talk to an agent over the phone. Explain the benefits. Describe what they will miss.
    • Train your agents. Assign a separate concierge to each user. Train your team. The first contact is critical for reducing churn and boosting engagement.
    • Measure success and performance. How different concierges are performing? Does phone has a better conversion than email? Measuring different success metrics get easier with our free churn optimization framework. 

    Mistakes to avoid

    • Not qualifying users. Offering full-fledged concierge onboarding to all the users without pre-qualification will cost you a lot of resources and will result in high churn. Qualify users via email or through a short survey.
    • Not following up. One call, a single email, or a Skype call isn’t enough. Follow up to increase conversions and to persuade users to move on.

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    > Why Every Saas Company Should Try Concierge Onboarding

    > Has Your SaaS Nailed the Onboarding Process?

    > Concierge onboarding doubled our conversion rate to paid in July

    Research evidence

    Gao, Lu, and Qian published a paper in Asia Pacific Journal of Management where they empirically found that the relationship between business and client is a mutual relationship. The two parties share responsibility and cooperate which leads to new sales via word-of-mouth. Engaging with clients at a personal level and incorporating human touch in business yield positive results.

    <3

    Business friendship between the client and the supplier significantly impacts the sales to the client, and this impact is further moderated by how the two parties share responsibilities in achieving common goals.

    Related techniques SEE ALL THE TECHNIQUES >

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    May 9, 2019

    Encourage Users To Invite

    2. Activation  >  Encourage Users To Invite Teammates

    Encourage users to invite teammates to reduce SaaS churn

    Why not ask current users who activate and have experienced Aha moment to invite their friends, teammates, and colleagues? This is a perfect way to get new users and retain existing users. Once they have friends, they're least likely to churn.

    ●● INTUITIVENESS

    Evernote

    Evernote gets 13% of new users from its referral program. It grew to $1 billion SaaS with its referral program.

    Airbnb

    Airbnb used a referral program to increase bookings by a whopping 25%.

    Dropbox

    Dropbox increased its users from 100K to 4,000K with referral program in 15 months. It generates 35% of new users from its referral program.

    How to use the technique

    • Know when to ask for an invitation. You cannot ask new users to invite friends’ right after they sign up. It is best to persuade them to invite others when they activate and experience the Aha moment. Our free churn optimization framework has actionable insights on how to do it. 
    • Choose happy moments. Users are more likely to invite others when they're happy with your app and have achieved a milestone. Allow them to invite friends after they achieve milestones.
    • Reward your users for inviting others. It is least likely that new users will invite others right away even if they're satisfied with your software. Rewarding your user and the people they invite is a great way to reduce churn and increase engagement.
    • Use personalized messages. Keep your messaging highly targeted. Refer to buyer personas and link copy to one big problem that your app can solve for the new users.
    • Create a referral program. A two-way customer referral program is the best way to make it work for your brand.
    • Monitor and analyze for better insights. Is there are specific buyer persona that actively invites new people? Is there are specific action after which a major chunk of users invites new users? Find out how to analyze data for decision-making in our free churn optimization framework. 

    Mistakes to avoid

    • Not making it smooth for users to invite others. If users have to take several steps to invite a friend, they won’t do it. Make it simple. Reduce friction. Create a one-step invitation program.
    • Asking at the wrong time. This can be lethal. Not only that you won’t get new users but you might lose current users. Find the best time to ask for the invitation.
    • Not asking multiple times. Asking your users just once to invite others to your software is least likely to work. Remind them via multiple channels (email, in-app messages, etc.).

    FREE OPTIMIZATION GUIDE

    Stop Your SaaS From Leaking Customers With Our Proven Optimization Process

    We will reveal an EXACT framework we use to improve conversion & retention rates of our SaaS clients by at least 30%.

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    READ MORE ON THE TOPIC

    > User onboarding strategies that work – and mistakes to avoid

    > Improving User Onboarding: The Ultimate Guide for Product and Growth Managers

    Research evidence

    A research article published in the Journal of Marketing Research by Bulte, Bayer, Skiera, and Schmitt found that businesses can leverage their existing customers to bring new customers. This lets businesses increase the lifetime value of both the referral and referrer. The referral won’t churn as long as their referrer is with the company.

    +1

    Leveraging existing customers to bring new customers lets businesses increase the lifetime value of both the referral and referrer.

    Related techniques SEE ALL THE TECHNIQUES >

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    Download our FREE guide with the battle-tested process for SaaS conversion & retention optimization

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