How Loom goes BOOM and drives growth with referral marketing
I originally worte this for medium but I thought you guys would also enjoy it here. I have linked to the original post at the bottom so you can find the screenshots and video if you want.
This FEATURE UNLOCKED email hit my email box last night! Boom I just got a major win with a product I love, Loom. Loom is a service that allows you to easily create and share recorded videos of your screen right from your browser.
I use this type of tech all the time for my business. Literally every day I’m recording demo videos and creating content by recording my screen. It’s a huge part of my content creation process as I like to dictate my ideas before I write.
My company, Action Wins, is a customer advocacy platform that drives growth by leveraging the power of word of mouth. We make it super easy to build refer-a-friend program for web applications, mobile apps, and retailers.
I’ve always been an advocate for companies and brands that I love. I’m a natural connector and tend to share useful products, services, and resources with my friends and colleagues all the time.
Loom has an awesome product and absolutely crushes it with driving referral growth. I know this because I started seeing their referral links all over my Facebook feed.
Bottom line, Loom has one of the best referral programs I’ve ever seen.
Here are the key elements to their program.
- They have an amazing product that people love!
This is probably the most important aspect of any referral program. If you have a great product that people love then chances are you already get a decent amount of growth from word of mouth. If you’re product sucks, why would anyone want to refer their friends?
- They have an amazing on boarding process that introduces you to their referral program.
Loom clearly has some amazing UX/UI designers. When you walk through their onboarding the experience is super easy and seamless. Towards the end you are introduced to their referral program and immediately realize that you can get access to premium features by referring friends.
It’s important that they on board customers right into their referral program because it turns customers into advocates right from the start of their customer journey. This maximizes the amount of referrals they will earn from each customer for their lifetime.
- Their referral program is easy to find and easy to understand.
Look at how easy that is to understand!Not only do they introduce you to their referral program right away but they make it easy to find and understand. So many companies tuck their referral program away in a navbar drop down, footer, or on some random account settings page. If your customers can’t find your referral program or don’t know it exists, how are you going to drive referrals?
- Desirable and achievable rewards (FEATURE UNLOCKED)
Since people love Loom’s product (obviously I do:) they will naturally want access to premium features. The rewards you build for your referral program need to be achievable but also desirable for advocates to want to share. Loom makes the first three levels of rewards super easy to achieve.
If you refer just 3 people you’ll get two premium features plus $15 credit towards more features. If they’d made you refer 10 people to get to this point, you’d probably drop off. But they make it so easy for you that the game just continues!
- Align rewards with usage of your product and your business model
The final key element of Loom’s referral program is its alignment with usage of their product and with their business model. Once you’re over 3 referrals, each new referral gets you $5 credit towards premium features. What do you think will happen once that credit runs out but I’ve gotten so used to all these awesome features that I now depend on?
You guessed it: I’ll probably convert to a paid customer.
Yes, Loom had to give me a lot of value to get to that point but I also referred 4 or more new customers at this point! That’s huge value for both of us!
But wait…. they aren’t a paid service at all! They are completely free for now.
Yup, focus on value first then make $ BOOM!While I was writing this article I went to look for a screen shot of their premium features and it turns out they haven’t spun them up yet. They do plan to introduce a subscription model at some point as you can see below. This makes their referral program even MORE interesting because they are leveraging referrals as a measure of how much value they are creating for their customers and they're letting us think that the $15 credit is worth something (which it will be in the future).
I love the approach they are taking because of their clearly testing to find the right fit and focusing on creating a product that customers love. Remember #1 from our list of the keys to referral marketing success?
Good on ya Loom! The Action Wins team loves what you’re building.
How could you leverage referrals to make your startup go boom?
BONUS: At the end of the video I throw a shout out to another awesome video startup called Bonjoro. They make it super easy to send custom videos to prospects and new accounts that SIGNIFICANTLY increase your conversion rate. I just met them the other day through the SaaS Growth Hacks group and think they are worth checking out if you love video. www.bonjoro.com
https://www.useloom.com/?ref=148345
Original Post: https://blog.markgrowth.com/feature-unlocked-how-loom-goes-boom-and-drives-growth-with-referral-marketing-771c15d36121
