How to grow your SaaS business with customer referrals

If your business is selling its services to customers, and your customers are happy – can you utilise customer referrals to boost sales even further? The answer is yes. Referrals should be a huge part of the SaaS marketing mix.  

Happy customers talk. It’s that simple – they'll share with their friends and family, suppliers, colleagues and more. Tapping into their valuable networks can unlock significant business opportunities for your SaaS business, so ensure that robust referral mechanisms are embedded in your inbound marketing strategy for increased customer acquisitions.  

People trust recommendations when they come from established sources – such as friends and co-workers – so, formalising a referral system to drive new leads and customers is a mechanism which will continue to deliver for your software business. Referrals have a huge 60% close ratio – so don’t overlook this.  

So, how can you drive leads through customer referrals? 

Discount codes 

Providing traceable discount codes will enable you to encourage your customer based to recommend your services to their network in return for a small discount. By providing a unique code per customer, you’ll also be able to track your customer base and lead generation – data is key.  

Why not include unique codes within your email marketing, SMS systems and more to drive take-up? 

Tip the scale 

SaaS sales can take time. It takes a number of points for a buyer to feel ready to make a purchase. After fully travelling through the buyers journey – Awareness, Consideration, Decision, a referral code can help to push an ‘on the fence’ consumer over the line to make a sale.  

Incentivise new customer sign ups and reward loyal customers for referring your software service – perhaps with a special limited time discount or add on service.  

By rewarding both the existing and new customer, you’re generating goodwill with both – unlocking even more opportunities for viral growth in the future.   

Drive word of mouth and ‘talkability’  

Encourage your customers to become your brand champions – encourage existing customers to review your business – perhaps on Trust Pilot or Google Reviews.  Good reviews speak volumes, especially to particularly wary consumers.  

Why not consider offering a tiered discount code for customers? Encourage them to share their unique code on social media to their friends. The more people sign up to your service using the code, the better the incentive or discount. This move will drive awareness and visibility to an expanded social network – this could drive interest in your brand’s social media channels as well as the all important sales.  

Don’t overdue it 

If you’re considering incentivising a referral programme – don't make it overly complicated. Make selling your services easy for your customers and it will reward your business again and again.  

The aim of the game is to encourage your existing customers to continue to drive software sales on your behalf, so don’t make it difficult or make people jump through hoops. Leave your consumers wanting more.  

Are you looking to increase your lead generation channels? Download our latest eBook and discover the key lead generation channels that will help fuel business growth. 

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Tags: Online Marketing, Lead Generation, Business Growth, sales enablement, Tech Sector

Posted by Chris Glancey
on February 24, 2020