5. Referrals  >  Offer Limited In-App Resources

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.

● PERSUASION

WorldOfWarCraft

World Of Warcraft gives a lot of in-app resources (e.g. exclusive pets) to users who invite their friends.

Dropbox

Dropbox has a perfect referral program where customers get free space (a limited resource) for inviting friends.

Sugarsync

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.

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Research evidence

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.

80%

As much as 80% of buying decisions in the B2B sector are influenced by peers (colleagues, friends, and family).


Related techniques SEE ALL THE TECHNIQUES >

Implement with our proven SaaS Churn Optimization Framework

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