It doesn’t matter if you are a software developer, proprietor, or part of the marketing team in a software company, there’s one thing that you all have in common – you want your software to reach more people and have more downloads, installs, sales, subscriptions and eventually more revenue. One sure shot way to achieve this is by using your existing user base to get new customers and users. You should be able to incentivize your current users to recommend your app to other people. Let us look at some of the ways to convince your current licensees and users to suggest your product to others:
#1 A referral program with incentives
This is generally the first path a business would pursue when they are trying to increase the amount of referrals. It is the most obvious route, because it works everytime. All you have to do is, promise your users that they will be getting something good in return for those referrals. You can choose the incentive based on your cash flow and what you can afford to giveaway. Decide how much you’re willing to spend on acquisition of customers and develop a referral program based on that data.
The key to making a successful referral program is to make it popular and make sure that the rewards for referrals are worth the effort. Many companies end up hiding their referral programs deep in their interfaces that not man actually see them. Send weekly newsletter to your users and mention about your referral program to make them aware of it.
#2 Provide added discounts and offers
This will add more value to the referral program that are promoting as part of your marketing and sales tactics. Think of a really quirky and unique thing that you can give users in exchange for a referral. Ideally, it should be something that is related to your product. It could be an upgrade to a paid tier or added features that give some value to the user. You can even unlock certain features only after they refer someone.
By setting up a “only way to get this is via referral” strategy you will be able to get interested licensees to step up their game and get people to sign up. Provide different tiers of bonuses based on the number of referrals each user is bringing up, so that they can have an added incentive to continue promoting the brand.
#3 Use Software Escrows to Ensure Safety
Software developers seldom think about this until the day of publishing their software. Are you planning on giving every licensee the access to your program’s source code? Are you going to make it available upon request? The inherent problem with giving away source code is that, it can be copied by your competitors easily.
Don’t do this unless you are an open source software. If your licensees insist on having access to the source code for various reasons, make sure you use a software escrow service for this purpose, to make sure that your source code is safe and secure.
I hope this article was useful for you to learn more about how you can increase software referrals and protect your source code while doing so. If you have any doubts with regards to this, let us know through the comments and we will be glad to help you out. If you have any suggestions regarding how we can improve the article, let us know them through the comments as well for us to improve.
Do you have any other reservations against using a software escrow? Have you tried any other strategies and tools to make sure that a critical software for operation is not affected at any cost? What is your opinion on the state of the industry when it comes to SaaS businesses? Do you think it’s stable enough for small companies to flourish? Let us know through the comments.