Offer limited in-app resources in your referral program to reduce SaaS churn
Offering limited in-app resources instead of cash (or credit) incentives is a great way to decrease the depreciation effect discounts have on a perceived product value. This will boost engagement and increase revenue in the long-run.
World Of Warcraft gives a lot of in-app resources (e.g. exclusive pets) to users who invite their friends.
Dropbox has a perfect referral program where customers get free space (a limited resource) for inviting friends.
Sugarsync offers free space to both the parties, which is an app resource that’s valuable.
How to use the technique
- Select bonus and resource for the referral program. The best technique is to use behavioral analysis to figure out what resource customers use (and value) most. Offer a bonus on the same. The resource needs to be valuable. Read more in our free churn optimization framework.
- Use data to find the right resource that will motivate customers to participate in your referral program. Better yet, conduct a survey and ask customers.
- Make sure the resource is valuable. If it’s already freely available in your app, it won’t work. Give bonus on your app’s core feature that’s only available premium customers.
- Make it exclusive. Tell customers the bonus they will get is exclusive. Share its benefits. Show how useful it is.
- Share bonus details. Clearly explain and share all the details and terms of the bonus and resource that customers will receive.
- Tweak and improve. Finding the right limited and valuable resource is challenging. You need to test multiple variations. Grab our free guide on testing and analysis.
Mistakes to avoid
- Giving bonuses on an invaluable resource. It’s all about the value of the resource. Is it really worth trying? If the resource is merely an add-on or an invaluable extension, it won’t motivate customers. Focus on value.
- Not highlighting the benefits of the resource. If it’s a premium resource, it’s highly likely that a lot of customers won’t have access to it. So clearly explain its benefits in the referral program.
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%.DOWNLOAD FREE PDF
READ MORE ON THE TOPIC
> 5 Highly Effective Referral Program Ideas to Generate SaaS Leads
The State of Business Customer Referral Program by Amplifinity reported that B2B customers engage with peers and help them decide what to buy. As much as 80% of buying decisions in the B2B sector are influenced by peers. Giving customers access to bonuses will persuade them to not only use your app but refer it to friends and colleagues.
Related techniques SEE ALL THE TECHNIQUES >
LOOKING FOR THE WAY TO STOP YOUR SAAS FROM LEAKING MONEY?
Download our FREE guide with the battle-tested process for SaaS conversion & retention optimization
Get a PDF with an exact step-by-step framework we use with our SaaS clients to research why their SaaS is leaking money, define optimization opportunities and run data-driven experiments that bring tangible ROI.