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Referral Marketing: How Does It Impact Your App’s Growth

Why You Should Use App Referral Program For An App. Learn more information with Asolytics. Asolytics ASO Blog
Referral Marketing: How Does It Impact Your App’s Growth
Growing an app in the modern competitive environment can be quite a challenge. New applications appear every day, so catching the attention of potential users requires serious planning and the use of modern promotion strategies. We believe that having an app referral program is one of the most effective methods you can implement despite the fact that many app developers skip this step entirely. At Asolytics, we are focused on providing you with the best tools to help you bring your application to the next level and make it as popular as it can be.

When your app is new and no one knows what it’s all about, gaining the trust of users is one of the keys to success. Referrals from friends or family increase the chances that an app will be well-received by other people and they will be willing to give it a try. In this guide, we will tell you about referral marketing, how this method works, and how helpful it can be in boosting the exposure of your application.

What Is Referral Marketing?

To put it simply, referral based marketing is the type of marketing strategy that relies on spreading information about a certain product with the help of people who already use it. When it comes to applications, there are ways to make it easy for users to tell their friends and family members about apps that they enjoy. A large percentage of apps that become viral sensations heavily rely on this promotion method.

How do users discover app friends referral? Depending on the app developers, there are different ways to approach referral marketing and give users an opportunity to share apps with others. The app may display invites that show up at specific times or when you complete certain challenges in the app. A lot of the time, referral strategies work in such a way that both the first user and the one they engage get some bonuses. Regardless of the strategy, the most important thing is for the app developer to create such a high-quality product that people feel the need to share it with others. It is also crucial to strike the right balance so that you get more users interested in your app without it becoming too spammy.
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How Does Referral Marketing Work?

A lot of developers that want to promote their apps wonder — how does this marketing work and how to implement referral program in mobile apps for Android and iOS? There are a few recommendations that can help you get the most from referral marketing:
It may be a good idea to target specific active users
Targeting all users of your app may be too much, so at the beginning, a lot of developers prefer to focus on active users who are likely to be interested in referring their friends and families to the application.
Make sure that both sides benefit from your program
The majority of modern apps that pay for referrals work in such a way that both parties — a first user recommending an app and their friend or family member — get some benefits. People are a lot more likely to recommend your app to their close ones if they get some reward themselves, so this is an important fact to keep in mind.
Use additional tools to analyze the market
When you try different marketing referral strategies or look for other ways to promote your app, you need to have access to reliable data. You can get a lot of information by getting more details about the work of competitors, so it’s a good idea to use special tools for mobile app market analysis to progress your app in the fastest terms.
Take a look at modern research
One thing you may not realize is that there are some differences in how iOS and Android users download and use apps. For instance, according to research, more Android users install apps during the weekdays while iOS users tend to install them more on the weekends. This information can be useful for deciding when to show a notification about a referral or when to send emails to subscribed users.
Try to stand out from competitors to the best of your ability
Apps that belong to the same category often have very similar referral programs. The reason is that app developers look at successful refer a friend programs used by others and implement them for their apps. Also, the actual app genre puts some restrictions on how a referral program can work. It is important to analyze what your competitors are doing when you develop your own scheme. To stand out, it is a good idea you should add at least one referral feature that is not used by anyone else.
Your app should be well-optimized for both iOS and Android
Referral features should be optimized for each operating system so that users don’t have any issues seeing them and sharing the information with others. The design and features can differ depending on what is more reasonable for each OS.

Best Referral Marketing Strategies

Are you interested in how you can develop the bambassadorsest app referral programs? The process of coming up with the most effective strategies is likely to involve some trial and error but there are methods that increase the likelihood of success. We recommend that you use the strategies mentioned below.

Consider turning some influencers into brand

Finding the most important influencers that will represent your brand can be one of the effective referral strategies. It is especially a good idea when an influencer already has a large following that you consider to be your target audience.

Use all the social media platforms to your advantage

Social media is highly important for any modern business promotion, so you should use it when you want to draw as much attention as possible to your application. You can use social media for promoting in-app referrals and you should also think about creating a full-on website.

Select advanced referral program software

If you are serious about using referral schemes as a promotional tool, we recommend that you spend some time selecting the best software for this purpose. One of the important features to look for is that it should allow users to send invites to their close ones in the majority of the messaging and social media apps.

Make sure you have a generous rewards program

There needs to be a sufficient nudge for users to get interested in your referral scheme. It is important that users get rewards for their effort, as you cannot expect them to take an additional step without proper incentive. Before creating your top paying referral programs, we recommend that you ask the following questions:

  • What type of referrals make sense for my app?
  • Who is my target audience?
  • What incentives are used by my competitors?
  • Will I be offering rewards to both the original user and the referred person?
It is important to also use different tools for app store optimization and you can find more information by clicking here: ASO Strategy: Proven Tactics & Tips.

Consider creating a double-sided referral program

One of the best strategies you can implement for promoting your app is using the double-sided referral program. A lot of highly successful applications, such as Airbnb, Dropbox, and Uber continue to rely on this program to get people interested in using their application and recommending it to friends. For example, both drivers and riders benefit from the Uber referral scheme. Drivers get $5 in cash for each new rider they bring while new riders receive a promo code that gives them $20 off the first ride. In such a way, everyone gets advantages and this app becomes more and more popular.

Advantages For Apps That Pay for Referrals?

After analyzing the work of referral programs, we can mention the following benefits:
It makes your app look more serious
Building an image is highly important if you want your app to be successful. Refer a friend marketing strategy allows you to create a presence on social media platforms and attract a higher number of users to the application.
It becomes easier to stay relevant
Referral marketing is one of the most effective tools when it comes to not only increasing the initial popularity of the app but also keeping the application relevant. There are so many options in the app stores that it’s important that people continue to find their way to your app and referral programs can help with that. They work the entire time and are not just a temporary sale or another bonus.
You get a high return on your investment
Because referrals act as boosters to your popularity, one of the biggest benefits is that you get a high return on your app investment. Referral schemes significantly lower your user acquisition costs, so you spend less money on targeting new users with different ads and other marketing campaigns. You can focus spending your money on improving the actual product and in-app experience.
The churn rate reduction is a significant bonus
Another serious advantage of referral programs is that users are likely to send invites to people who they think will be interested in your product. It means that you get direct access to the audience that is likely to enjoy your application and even recommend it to others. According to the marketing statistics, there are more loyal users among referred ones compared to those who have found the app with the help of ads and other methods.
You get a higher retention rate
As users spend more time using your application, you can finetune their experience by upgrading the user interface, providing new features, and more. You can also focus more on your app store optimization based on the information you receive from users.

Use Referral Programs to Drive More People to Your App

A lot of app developers underestimate the power of referral strategies. It can be extremely difficult to get people interested in your app when the foundation of trust hasn’t been built yet. When people haven’t heard about your app and they don’t know what they can expect from it, there is a level of distrust that you should overcome. Referral programs solve this issue successfully, as people are a lot more likely to try a new app if it is recommended by other people in their lives.

There are many ways that developers can approach referral strategies and it all depends on the app type, marketing audience segmentation, and resources you have available. It is highly important to use modern software that will provide users with the necessary features and make it easy for them to invite others. You should keep in mind that people will become interested in your referral schemes only if you provide them with value, so it’s definitely a good idea to be generous. Once you have your referral program up and running, we also recommend using analytic tools to see the exact results you are getting from it.