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Dan McGaw, Director of Marketing at KISSmetrics
3 Steps to Creating Exponential
Growth using Referral Campaigns
Who am I ?
@thuelmadsen!
Who am I ?
@danielmcgaw!
Join me on Twi er
@danielmcgaw #KISSwebinar
Join me on Twi er
@thuelmadsen #KISSwebinar
WATCH WEBINAR RECORDING NOW
Typical ways a potential customer
will hear about your business.2
Your business is calling, advertising,
marketing or emailing potential customers.
1
Customers are acting on your behalf to tell
people about your business and services
2
Customers are acting on your
behalf to tell people about your
business and services
21
Your business is calling,
advertising, marketing or
emailing potential customers.
.4% 1.6%
Customers are acting on your
behalf to tell people about your
business and services
Your business is calling,
advertising, marketing or
emailing potential customers.
.4% 1.6%
Customers are acting on your
behalf to tell people about your
business and services
Your business is calling,
advertising, marketing or
emailing potential customers.
Thats 400% more conversions!
Obviously we are gonna talk
about number
2
The act of referring someone or something for
consultation, review, or further action.
Referral definition
The act of referring someone or something for
consultation, review, or further action.
Referral definition
Also known as word of mouth
Doesn't ma er what you call it
Dropbox
Dropbox
100k registered users to 4M registered users in just 15 months.
That’s a 3900% growth!
Things we need to crack the code
of referral conversions
3
1
2
Table of Contents
3
Happy Customers
Reciprocal Incentives
Reproduction
Happy Customers1
Product Market Fit
Segmentation
Highest LTV
Segmentation
Highest LTV
Large Social
Following
Segmentation
Highest LTV
Large Social
Following
In Target
Vertical
Segmentation
Highest LTV
Large Social
Following
In Target
Vertical
Low Support
Ticket Volume
Segmentation
Highest LTV
Large Social
Following
In Target
Vertical
Low Support
Ticket Volume
Engaged User
Segmentation
Highest LTV
Large Social
Following
In Target
Vertical
Low Support
Ticket Volume
Engaged User
Located in
Target Region
Segmentation
Highest LTV
Large Social
Following
Located in
Target Region
In Target
Vertical
Low Support
Ticket Volume
Engaged User
Product Market Fit
Segmentation
LOG IN WITH GOOGLE
Start Your Free KISSmetrics Trial
Reciprocal Incentives2
Reciprocal Incentives
Free download
Reciprocal Incentives
Free download
Free for limited time
Reciprocal Incentives
Free download
Free for limited time
Promotional item
Reciprocal Incentives
@danielmcgaw #convconf
Free download
Free for limited time
Promotional item
Large discount
Reciprocal Incentives
Free download
Free for limited time
Promotional item
Large discount
Additional Storage
Reciprocal Incentives
Free download
Free for limited time
Promotional item
Large discount
Additional Storage
Points
Reciprocal Incentives
Free download
Free for limited time
Promotional item
Large discount
Additional Storage
Points
Cash
Reciprocal Incentives
Code School Example
Hall Pass Campaign
Two days free if you did
not become a paying
member in first 7 days.
!
!
!
!
Code School Example
Hall Pass Campaign
Two days free if you did
not become a paying
member in first 7 days.
Get 2 additional days for
every friend who activates
a Hall Pass because of you
!
!
!
Hall Pass Campaign
Two days free if you did
not become a paying
member in first 7 days.
Get 2 additional days for
every friend who activates
a Hall Pass because of you
!
!
!
60k registered users to 600k registered users in just 17 months.
That’s 10x growth!
Code School Example
Reproduction3
Basic Reproduction Number
http://en.wikipedia.org/wiki/Basic_reproduction_number
Basic Reproduction Number
R = ?
Disease Transmission
Measles 12–18
Smallpox 5–7
Polio 5–7
HIV/AIDS 2–5
SARS 2–5
Influenza 2–3
http://en.wikipedia.org/wiki/Basic_reproduction_number
Basic Reproduction Number
R = 3
Basic Reproduction Number
R = 3
R = 3
Basic Reproduction Number
R = 3
Basic Reproduction Number
R = 3
Basic Reproduction Number
R = 3
Basic Reproduction Number
1 user turns into 130 users at an R3 in 30 days.
Accomplishing an R3
Delivery Methods
Text message
In Application
Email
Social media
In text
In text
In text
In text
Grew by 1,000,000 users per week
In application
In application
In application
In application
In email
Activation email
In email
Activation email
In email
Activation email Reproduction email
In email
Activation email Reproduction email
In social media
Landing page
Traffic
Traffic doubled every month
Traffic
$25 Conversion
$9 Follow up conversion
$9 Follow up conversion
$9,000 investment returned last click a ribution of
$122,280 in 17 months.
$9 Follow up conversion
Total estimated return over $500,000 in 17 months.
55x Return on investment!
Bonus Section+
What are the biggest killers?
What are the biggest killers?
What are the biggest killers?
What are the biggest killers?
THANK YOU
Hiring a Product
Marketer!
dan@KISSmetrics.com
Questions?
@danielmcgaw
Director of Marketing
KISSmetrics

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3 Steps to Creating Exponential Growth using Referral Campaigns