5. Referrals  >  Target Right Audience

Target right audience for your referral campaign to reduce SaaS churn

Targeting people who are most likely to convert to a paid plan and helping them in achieving their Aha moment with your app will reduce churn to a great extent. Ensure your customer bring the right people on board.

●● FUNCTIONALITY

Evernote

Evernote let’s referral know upfront what Evernote is so they only accept if they see a mutual fit.

Shoeboxed

Shoeboxed clearly tells its customers what type of people they should invite (those who need to get organized and digitize their documents).

Typeform

Typeform tells its customers how exactly they can invite and save 100%. They tell customers what actions referrals should take.

How to use the technique

  • Analysis of existing customers will reveal the most appropriate buyer persona for your app with the highest CLV. Analyze the behavior of your most engaged users. What actions they take. Read our free churn optimization framework for more details.
  • Identify the audience type you wish to target based on data. Forget everything and use data you have to figure out what type of customers you wish to have. The right audience will engage, won’t churn, and will convert to loyal customers.
  • Share details with customers. Tell them what type of people they should invite. Send them emails. Create a referral program page. Clearly identify a few basic characteristics of the type of people they should invite.
  • Identify appropriate users early. Analyze referrals carefully. Identify users that are more likely to convert (based on data you have). Focus on them. Get in touch with them. Help them achieve success with your app early.
  • Use retargeting to bring back the right audience. Don’t lose them. Match in-app actions and behavior of new referrals to your most loyal customers. Retarget best referrals so they don’t lose interest in your app.
  • Constant data analysis is key. Any change in your existing customers’ behavior should reflect in your referral program. Tweak referral audience accordingly. Monitor the success and performance of the referral program. This our free guide is your best resource. 

Mistakes to avoid

  • Not linking targeting audience to an existing buyer persona. Don’t reinvent the wheel. You already have customers and their data. Pick referral audience from existing data.
  • Not sharing details with your customers. This is a big mistake. Tell your customers what you want them to do, what type of people they should invite, and what are the ideal users of your app. Share these details with your customers.

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Research evidence

According to Friendbuy, the optimal sharing rate of the referral link is 15%. However, some customers go the extra mile and the best rate you can expect is 50%. The best conversion rate is 15% which means only 15% of referrals will convert by opting for the free trial. This conversion rate can be significantly improved if your referrals are highly relevant.

15%

Only 15% of referrals will convert by opting for the free trial. This conversion rate can be significantly improved if your referrals are highly relevant.


Related techniques SEE ALL THE TECHNIQUES >

Implement with our proven SaaS Churn Optimization Framework

Download a PDF with an exact process we use with our SaaS clients to research, define optimization opportunities and test.