Part 0: What you should be measuring and what you should be fixing
I like to divide up the referral program into 4 distinct measurable conversion points so that we can better optimize each step separately. Referral programs are complex — there are multiple different levers we can pull to optimize — let’s focus on each one methodically.
- Measure % of your active users that have seen your referral program. If this number is low, work on visibility and promoting it (Part 1)
- Measure number of invites sent per each of your users that has seen your referral program. If this number is low, you should work on adding clarity and creating urgency (Part 2)
- If you’re using email, you need to measure open rates. If this number is close to 0, you’re likely ending up in spam (Part 3)
- Measure % of referral links clicked/emails or messages opened. If this number is low, you can improve messaging + add multiple follow up points (Part 4)
Fortunately with referral programs, we have a lot of opportunities to track — we can track views, invites generated, emails open and links clicked, and sign ups.
I’ll assume you have a referral program set up and that you’re tracking these. With that said, we will diagnose what you should measure and how to make that number go up