B2B Referral Program KPIs (2023) - Cello.so

Quoted on this wiki

Every place a page here uses this source, in the order the words come in it.

1. Cost to run Referrals are usually perceived as costly as you are usually incentivizing both users who refer others and invited users, usually through discounts. Improper incentivization structure is the leading cause. By tying user rewards to the recurring revenue generated by their invited users, you can maintain a consistently favorable LTV/CAC ratio and offer appealing rewards to users. You can read more on rewards in this guide. “This can be achieved by turning referrers into brand advocates who get rewarded for their ongoing influence over a longer period of time.” Targeting Targeting in paid advertising isn't what it used to be. With Apple cracking down on user advertising IDs and Google having similar plans, campaigns are becoming less effective due to worse targeting options. This privacy push is forcing marketers to increase budgets to get the same results as before. User referrals have built-in targeting due to the fact that you have experienced users of your app inviting others they know will be a good fit for the tool.

   In Customer advocates

2. Activation rate “Best programs are easily accessible alongside the features your users use and love.” How to improve the activation rate

   In Referral programs and incentives

3. Setup time Launching a high-performing program doesn't need to take long. Programs no longer need to be self-built as out-of-the-box solutions exist for going from idea to product quickly. tl;dv, an AI-powered meeting recorder, integrated and launched its user referrals within a few days, growing the channel to a sustained 550 monthly high-quality sign-ups soon after. “Referrals are usually perceived as costly as you are usually incentivizing both users who refer others and invited users, usually through discounts.” Scaling Referral programs are sometimes seen as one-off campaigns instead of what they can be: highly scalable acquisition channels. The key to scaling is to build user habits around referring other users. This can be achieved by turning referrers into brand advocates who get rewarded for their ongoing influence over a longer period of time. Higher ACV of B2B products allows for spreading rewards across a long period as a percentage of monthly subscription payments, creating a powerful reminder to share with more users.

   In Referral program economics

4. How to improve the activation rate “Additionally, embedding programs at various touchpoints and enabling contextual sharing, especially during proud user moments or when receiving high Net Promoter Scores (NPS>8), can further boost discoverability.” Sharing rate

   In Feedback-triggered referral timing

5. Input metrics These "on the ground" metrics are actionable, and you should look at them to understand how you can improve your program performance. They should point to specific actions to optimize the overall performance. The best input metrics are predictive of later outcomes. “They directly link to your annual recurring revenue (ARR) referral to predict future growth.” Input metrics

   In Referral pipeline reporting

Quotes are verbatim and belong to their publishers. Where a quote has been translated, the original wording is kept below it.