How to start an outstanding referral program for SaaS

How to start an outstanding referral program for SaaS

Growth Marketing
Marketing Team
Marketing Team Aug 2 2021 • 8 min read
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If you're looking for a way to grow your SaaS business, look no further than referral marketing. In fact, it's one of the best ways to get new customers. For SaaS companies in particular, referral programs are essential to their success. But how can an SaaS company start and maintain a successful referral program? Let this post be your guide!

What is SaaS?

SaaS stands for Software as a Service and refers to software that's hosted on the web. The most popular SaaS products are business tools like CRM, project management apps, HR platforms, etc.

How does referral marketing work?

A company can set up an incentive program where customers who refer friends and family receive a reward. SaaS companies are especially well-suited to this type of marketing since they can offer customers prizes like free months or credits on their account, which is something that SaaS users would find valuable.

What's the benefit?

Referral marketing provides SaaS brands with an additional channel  to grow their business. SaaS companies that do referral marketing are also able to build a larger customer base because they're leveraging the power of word-of-mouth advertising.

What should SaaS brands look for in an incentive program?

The success of SaaS company's referral program hinges on whether or not customers find benefit in it. SaaS companies should be mindful of the incentives they are offering to ensure customers find them as valuable and attractive as possible.

For example, SaaS companies can offer referral rewards that provide some type of tangible value for SaaS customers - such as a free month or credits on their account. Another option is giving referrals a percentage off their next SaaS purchase.

How does SaaS companies retain customers?

Reward programs are a great way for SaaS brands to generate customer loyalty and encourage repeat business. SaaS companies should offer referral rewards that will keep customers coming back, such as discounts, credits on an account or free months of  SaaS.

How does referral marketing work?

A company can set up an incentive program where customers who refer friends and family receive a reward. SaaS companies are especially well-suited to this type of marketing since they can offer customers prizes like free months or credits on their account, which is something that SaaS users would find valuable.

What's the benefit?

Referral marketing provides SaaS brands with an additional channel to grow their business . SaaS companies that do referral marketing are also able to build a larger customer base because they're leveraging the power of word-of-mouth advertising.

What should SaaS brands look for in an incentive program?

The success of SaaS company's referral program hinges on whether or not customers find benefit in it. SaaS  companies should be mindful of the incentives they are offering to ensure customers find them as valuable and attractive as possible. SaaS companies can offer referral rewards that provide some type of tangible value for SaaS customers, such as a free month or credits on their account. Another option is giving referrals a percentage off their next SaaS purchase.

SaaS brands should also consider how to retain customers. SaaS companies offer referral rewards that will keep customers coming back, such as discounts, credits on an account or free  months of SaaS.

Additional SaaS Referral Marketing Tips:

  • SaaS companies should offer a referral program that's tailored to their  specific business needs.
  • SaaS brands need to be mindful of the incentives they are offering in order to ensure customers find them valuable and attractive as possible.
  • SaaS companies should tailor their referral rewards to encourage repeat business. SaaS brands can offer customers who refer friends and family a percentage off or credits on their account, which will keep them coming back.
  • SaaS companies should offer a referral program that's tailored to their specific business needs.
  • SaaS brands need to be mindful of the incentives they are offering in order to ensure customers find them valuable and attractive as possible.
  • SaaS companies should tailor their referral rewards to encourage repeat business. SaaS brands can offer customers who refer friends and family a percentage off or credits on their account, which will keep them coming back.

What should SaaS brands look for in a SaaS referral program?

The success of SaaS company's SaaS referral depends on whether or not customers find benefit in it. SaaS companies need to be mindful of the incentives they are offering to ensure customers  find them as valuable and attractive as possible. SaaS brands can offer referral rewards that provide some type of tangible value for SaaS customers, such as a free month or credits on their account. Another option is giving referrals a percentage off their next SaaS purchase.

Referral marketing is one of the most powerful tools in a SaaS company’s arsenal. It can be used to increase customer loyalty, reduce churn rates, and accelerate revenue growth. In this blog post, I will walk you through how to start an effective SaaS referral program.

When is it worth starting a SaaS referral program?

SaaS companies should consider launching a SaaS referral program when they have reached critical mass and are cash flow positive. For many SaaS businesses, this happens within the first year of operation. If you’ve been in business for over one year and are still waiting to cross that threshold, it may be time to start a SaaS referral program.

How does SaaS referral marketing work?

Referral programs can take many forms but the most effective SaaS ones will use an automated platform with smart triggers and rewards for both referrers (those who recommend your product) and receivers (those who are introduced to your SaaS product).

What makes SaaS referral marketing so powerful?

Referral marketing is one of the most effective tools for SaaS companies because it can lead to increased customer loyalty, reduce churn rates and accelerate revenue. It’s also relatively inexpensive and has a high return on investment. SaaS companies who invest in an effective SaaS referral program will see a rapid increase in revenue followed by a dramatic reduction of customer churn rates and increased word-of-mouth marketing for their SaaS product as well.

When is it worth starting SaaS referrals?

SaaS companies should consider launching SaaS referrals when they have reached critical mass and are cash flow positive. SaaS businesses usually reach this point within the first year of operation. If you’ve been in business for over one year and are still waiting to cross that threshold, it may be time to start SaaS referral programs.

What SaaS companies should consider before starting SaaS referral programs

SaaS businesses usually reach this point within the first year of operation. If you’ve been in business for over one year and are still waiting to cross that threshold, it may be time to start SaaS referral programs.  

SaaS referral programs can take many forms but the most effective SaaS ones will use an automated platform with smart triggers and rewards for both referrers (those who recommend your product) and receivers (those who are introduced to your SaaS product).

7 growth hacks SaaS businesses can use to ensure they're getting the most out of their referral marketing efforts and generating more revenue.

#1. Provide an outstanding customer service experience from the very beginning.

SaaS companies need a great product, exceptional customer service and a solid buying experience in order for referrals to happen naturally.

#2. SaaS owners should pay attention to their analytics.

They'll often find that they're getting referred without even knowing it. SaaS business owners should make sure they're tracking their referrals and that the referral program is working for them.

#3. Create a wow factor with your customers.

Such as by creating an amazing experience in opening up packages or through unboxing videos (excellent marketing strategy). SaaS companies also need to make it easy for visitors and customers to refer their brand. SaaS owners need to make sure they're asking if the customer wouldn't mind referring them, or have a referral form readily available on every page of their site.

The SaaS company needs to look at how they can create shareable moments with their product experience. SaaS businesses need to think about how they can make their product experience sharable, such as by creating an amazing customer service or packaging and unboxing experience. SaaS owners also need to be thinking about the referral form on their site so that customers have a way of sharing it with others if they're happy and pleased with what they've experienced. SaaS businesses also need to think about how they can make the referral form easy for customers to refer, such as by making sure it's visible on every page of their website or in an email newsletter.

The SaaS company needs to consider what keywords are going into their content and social media posts so that people who are searching online will find them. SaaS owners need to surround their content with keywords such as SaaS, referral program and enterprise SaaS so that they can be found by potential customers who are looking for these types of businesses.

The SaaS business should have a measurable goal in place before launching any campaigns or trying to generate referrals. SaaS company owners need to make sure they have a goal in place and that this is measurable so it can be tracked. SaaS business owners should also reward customers who refer their brand with discounts or free trials to encourage visitors to commit and purchase from the SaaS site for themselves, which will increase revenue as well as referrals.

SaaS owners need to make sure they have a referral program set up, and that it's exceptional so SaaS customers will want to refer their SaaS company without being prompted or asked. SaaS companies should think about what incentives are going into the referral programs such as discounts on purchases for new customer or providing free trials. SaaS owners need to think about how they can provide incentives to keep their SaaS customers referring other potential SaaS and also buying for themselves.

There are many different ways a SaaS company can encourage referrals, such as through social media campaigns or by offering discounts when someone refers an account. A SaaS company can also offer free trials or discounts on purchases for SaaS customers who refer their brand. SaaS owners should think about what incentives they're providing to SaaS and how this will encourage them to keep referring other potential SaaS while also buying from the SaaS site themselves.

#4. Make it easy for visitors and customers to refer your brand.

Make sure you make it as easy as possible to share your products and refer your brand. A few ways this can be done are: making the process of sharing a product simple with plenty of social options, providing an incentive or rewards for referrals, and making the referral process as simple as possible.

#5. Implement a referral program if you haven't already done so.

Sometimes people need a nudge in order to share your products with their friends and family which is why providing rewards for SaaS referrals can be just what they need when it comes to sharing your brand.

#6. Capitalise on influencers within your niche if you can.

SaaS companies are always looking for ways to get their message out and this is a great way to do it. Influencer marketing has been around since the days of ancient Greece but recently has seen an explosion in popularity thanks to social media platforms like Facebook, Twitter, and Instagram. SaaS companies should take advantage of the power influencers wield in their niches by offering them products to review or giving them affiliate revenue for referrals they send your way

#7. Reviews are a referral too.

Customers often trust what other customers say which is why it's important to have as many positive SaaS reviews out there as possible. SaaS companies should be sure to offer incentives for customers to write a review and make it easy for them to do so on their website.

The SaaS market is constantly evolving, with new SaaS companies launching every day and legacy players fighting to stay on top of the latest trends. SaaS companies have to be the SaaS company that their customers rave about, not just another SaaS provider. To accomplish this goal it's necessary to implement a variety of growth hacks for SaaS referral marketing as outlined in this post.

As a final word, it's important to have a measurable goal in place SaaS company owners should make sure they're tracking referrals and that the referral program is working for them.

Need help on building your SaaS business? Maybe 4Geeks Engineering is for you.

About 4Geeks

Founded in 2016 by Allan Porras, 4Geeks is a global software engineering and data-driven growth marketing firm, focused on 10x ROI for startups, small and mid-size companies around the world. 4Geeks serves in multiples industries including eCommerce, Retail, Healthtech, Banking & Fintech, Startups & B2B SaaS, Marketing and Real Estate.

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