5. Referrals  >  Offer Reward Credits

Offer reward credits to reduce SaaS churn

Offering reward points is a perfect way to increase repeat purchase. When customers get credits in their account, they're more likely to use them and stick with your app. The same is true for referred users.



Airbnb gives credit to customers and referred users which can only be redeemed in-app.


iPage has done a great job of defining credit in terms of dollar value.


Mailerlite has as smart two-way credit reward where customers get the reward when the referral upgrades.

How to use the technique

  • Create a reward point system. Define each credit/point worth? How it will be earned and redeemed? How it will be integrated into the referral program? Develop a complete system. Get our free churn optimization framework for more information. 
  • Decide with a suitable value of a single point/credit. The best practice is to link it to the cash value. For instance, one point equals a dollar. This makes the calculation easy for customers.
  • Get feedback from customers about the reward system. Get suggestions for improvements. If your customers don’t like it or don’t consider points to be valuable, they won’t participate in the referral program.
  • Gamify the experience. Allow customers to earn points through multiple actions (including inviting a friend). Enhance the value of the points with gamification.
  • Simplify the reward system. Keep it simple yet attractive. It should be easy enough that your customers could explain it to friends without hesitation.
  • Share and explain it. Create a page on your website to explain the reward system. Explain it in-app. Share its details via email and social media.
  • Analyze and improve. Is your reward system motivating enough? Is it working? Are your customers participating in the program? Analyze data and tweak your program for improvements. Read our free guide for more details.

Mistakes to avoid

  • Not making it clear for referred users. Don’t make it challenging for new people to understand your point system. Make it clear to them before they sign up. Keep it clear.
  • Not defining credit value in terms of money. Define credit/point in terms of its dollar value so customers can make sense of it.


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%.


Research evidence

A Nielsen Harris Poll conducted for Ambassador found that 88% of Americans say that they would like to receive some kind of reward for sharing a product or recommending it on the social network. The reward, according to respondents, could be money, points, early access, or something else, but it has to be there.


88% of Americans say that they would like to receive some kind of reward for sharing a product or recommending it on the social network

Related techniques SEE ALL THE TECHNIQUES >


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.