The Best Way to Use Referral Marketing to
Grow Your SaaS Business

In today’s world, it is crucial for software-as-a-service (SaaS) startups to have a strong customer base. But how do you build that base? There are many different ways, but referral marketing is one of the most effective methods. It involves getting your current customers to refer their friends and family members to your product or service. A referral marketing system is particularly effective for SaaS businesses because it lets you tap into your customers’ social networks.

This article will discuss how SaaS startups can use referral marketing systems to grow their customer base. We will also look into the benefits of using a referral marketing system and how to get started.

What is Referral Marketing?

Referral marketing is a process where businesses encourage current customers to refer new ones. This can be done through various methods, such as providing incentives or rewards for referrals. Referral marketing is an effective way to increase business because it relies on word-of-mouth advertising. When customers are happy with a product or service, they are more likely to refer their friends and family. According to a study by Nielsen, 92% of consumers trust referrals from friends and family over all other forms of advertising.

Referral marketing can also be done online using SaaS. This type of service is software that allows businesses to automate the referral process. It also provides real-time tracking of referrals, so businesses can see how well their campaigns are performing.

How Does Referral Marketing Work for SaaS?

Referral marketing can be a powerful tool for SaaS businesses for a few reasons.

First, referrals are more likely to become customers than people who are referred by other means, such as advertising. This is because people are more likely to trust the recommendations of their friends and family.

Second, referrals are more likely to be retained as customers than those who are not referred. According to a study by Harvard Business School, referred customers are 18% more likely to stay with a company than non-referred customers. This is because people generally like to stick with what is familiar to them. When a friend or family member recommends a product or service, it is more likely to be something the person will like.

Third, referrals are more likely to be loyal customers. Studies have shown that referred customers are more likely to be repeat customers and are also more likely to refer others. This is because they are more likely to be satisfied with the product or service.

Fourth, referrals are a cost-effective way to grow a business. A study by McKinsey & Company found that it is six times more expensive to acquire a new customer than it is to retain an existing one. This is because it takes time and money to acquire a new customer, but it costs nothing to retain an existing one.

Finally, referrals are a great way to build word-of-mouth advertising. When customers are happy with a product or service, they are more likely to refer their friends and family. Finding a referral partner means free advertising for your business.

How to Get Started with Referral Marketing

Now that you understand the benefits of referral marketing, let’s take a look at how to get started.

There are a few things you need to do in order to set up a referral marketing system.

First, you need to create a process for referrals. This can include a form or landing page where people can submit their information. It is also a good idea to have a system to track referrals. This will allow you to see how well your campaigns are performing.

Second, you need to create incentives for referrals. This can be in the form of rewards or discounts. Be sure to make it clear to customers what they will receive for referring their friends.

Third, you need to create marketing materials that promote referrals. This includes everything from emails to social media posts. Make sure to include a call-to-action so people know what to do next.

Fourth, you need to promote your referral program. This can be done in a variety of ways, such as through social media, email marketing, and paid advertising.

Finally, you need to track the results of your referral program. This includes measuring the number of referrals, the number of conversions, and the amount of revenue generated.

By following these steps, you can set up a successful referral marketing program for your SaaS business.

How Can SaaS Businesses Use Referral Marketing to Grow Their Customer Base?

There are many different ways businesses can use referral marketing systems to grow their customer base.

Rewards Program

One of the best ways to use referral marketing is to create a rewards program. This can be as simple as giving customers a discount for referring friends or as complex as giving free products or services for referrals. Whatever type of rewards program you choose, make sure it is attractive to your customers.

Contest

Another great way to increase referrals is by running a contest. This can be a contest to see who can refer the newest customers or who can generate the most revenue. The prize can be anything from a free product to a cash prize.

Social Media

You can create special offers or discounts only available to customers who refer their friends through social media. In addition, you can also use social media to track referrals. This will allow you to see how many referrals are coming in through social media and how much revenue they generate.

Customer Referral Form

A customer referral form can be embedded in your website or in your email marketing campaigns. It allows customers to refer to their friends and family members quickly and easily.

Referral Link or Code

A referral link is a special URL or code that can be used to track referrals. When a customer clicks on the link, they will be taken to a special page that allows them to refer their friends. This is a great way to track the success of your referral marketing campaign.

Email Campaign

An email campaign is a great way to promote your referral marketing program to your customers. You can include a special offer or discount that is only available to customers who refer their friends. In addition, you can also use email to track referrals. This will allow you to see how many referrals are coming in through email and how much revenue they generate.

Text Message Brigade

You can also use referral marketing SaaS to create a text message brigade. This allows customers to refer their friends and family members by sending a text message. This is a great way to reach out to your customers and promote your referral marketing program.

Now that you know how businesses can use referral marketing SaaS to grow their customer base, it is time to get started! Try out one or more of the methods listed above and watch your business grow. The key is to make it easy for customers to refer friends.

5 Companies that Excelled in Using Referral Marketing System to Grow Their Businesses

1. Uber

Uber is a great example of a company that used referral marketing to grow its business. In fact, they attribute much of their early growth to their referral program.

Uber was one of the first companies to offer a rewards program for referrals. They offered free rides and discounts to customers who referred their friends.

In addition, Uber used social media to track referrals. This allowed them to see how many referrals were coming in through social media and how much revenue they were generating.

2. Airbnb

Airbnb attributes about half of its new customers to referrals. Like Uber, Airbnb offered a rewards program for referrals. They offered free nights and discounts to customers who referred their friends.

In addition, Airbnb used social media to track referrals. This allowed them to see how many referrals were coming in through social media and how much revenue they were generating.

3. Dropbox

Dropbox is a company that is well-known for its referral marketing program. It reported a 3900% jump in customer base through referrals.

Dropbox offered a rewards program for referrals. They offered free storage space to customers who referred their friends.

4. Evernote

Evernote is a company that offers a referral program to its customers. Their app has been highly popular, with its first million users coming in 446 days (about 14 months) and 11 million users coming in two years.

Evernote’s rewards program for referrals includes a free month of service to customers who referred their friends.

5. Warby Parker

Warby Parker attributes about 20% of its new customers to referrals. It offered a rewards program for referrals. They offered a $5 discount to customers who referred their friends.

Best Referral Marketing Software For SaaS

SaaS companies have unique needs when it comes to referral marketing, and there are a number of software options that can help you get the most out of your referral marketing campaigns. Here are some of the best referral marketing software for SaaS companies:

ReferralCandy

Referral Candy allows you to create a rewards program for your customers. They can earn discounts, free products, and other rewards for referring friends.

Main Features:

• Create a rewards program for customers
• Earn discounts, free products, and other rewards for referrals
• Track referrals through a special dashboard
• Integrate with your existing website or email marketing campaigns

ReferralRock

Referral Rock software allows you to create a contest for your customers. They can compete to see who can refer the most new customers or generate the most revenue.

Main Features:

• Create a contest for customers
• Compete to see who can refer the most new customers or generate the most revenue
• Track referrals through a special dashboard
• Integrate with your existing website or email marketing campaigns

Refersion

Refersion helps you track referrals and gives you the ability to create customized referral programs.

Main Features:

• Track referrals
• Create customized referral programs
• Integrate with your existing website or email marketing campaigns

Ambassador

Ambassador allows you to create a social media referral program that encourages customers to refer their friends on social media.

Main Features:

• Create a social media referral program
• Encourage customers to refer friends on social media
• Track referrals through a special dashboard
• Integrate with your existing website or email marketing campaigns

Tapfiliate

Tapfiliate allows you to quickly and easily create beautiful affiliate landing pages, track your affiliates’ performance, and pay your affiliates with monthly or weekly commissions.

Tapfiliate is easy to use and has a wide range of features that make it an essential tool for any SaaS business.

Main Features:

• Create beautiful affiliate landing pages in minutes
• Track your affiliates’ performance with detailed reports
• Pay your affiliates with monthly or weekly commissions
• Get started quickly and easily with no setup fees or contracts

Which referral marketing software is best for your SaaS company?

It depends on your needs and what you are looking for in a referral marketing program. Try out a few of the options above and see which one works best for you.

When it comes to referral marketing, SaaS companies have unique needs. A number of software options can help you get the most out of your referral marketing campaigns, including ReferralCandy and ReferralRock. These programs allow you to create rewards programs for your customers, track referrals through a special dashboard, and integrate with your existing website or email marketing campaigns.

If you are looking for a referral marketing program that can help you get started quickly and easily, then Ambassadors or Tapfiliate may be a good option for you.

However, if you are looking for a more sophisticated program that can track referrals and help you measure the success of your campaign, then ReferralRock may be a better fit. Try out a few of these programs and see which one works best for you.

Final Thoughts

As a SaaS startup, it’s crucial to have a strong customer base. And one of the most effective ways to build that base is through referral marketing.

This system involves getting your current customers to refer their friends and family members to your product or service. A referral marketing system is particularly effective for SaaS businesses because it allows you to tap into your customers’ social networks.

So if you want to grow your customer base, check out our blog for more marketing tips for SaaS startups.