B2C Subscription

This guide outlines strategies for implementing successful referral programs for B2C subscription businesses using RefRef.

The Power of Referrals for Subscription Businesses

Subscription-based businesses benefit from referral programs in several ways:

• Reduced customer acquisition costs compared to paid advertising
• Higher retention rates among referred customers
• Increased lifetime value through network effects
• Accelerated growth through viral coefficient optimization
• Enhanced brand loyalty and community building

Designing Your Subscription Referral Program

Key Design Decisions

• Incentive Structure - Free months, subscription upgrades, or cash rewards
• Dual-sided vs. Single-sided - Whether to reward both parties or just the referrer
• Reward Timing - Immediate rewards or after referred customer milestone (e.g., 2nd payment)
• Referral Limits - Capped or unlimited referral rewards
• Promotion Strategy - In-product, email, social, or multi-channel approach

Popular Models for Subscription Businesses

1. The "Give a Month, Get a Month" Model

   • Both referrer and new subscriber receive one month free
   • Creates urgency and clear value proposition
   • Easy to communicate and understand

2. The Tiered Rewards Model

   • Increasing rewards for more successful referrals
   • Gamifies the referral process
   • Incentivizes ongoing participation

3. The Premium Access Model

   • Referrers gain access to premium features or content
   • Leverages exclusivity as motivation
   • Creates product advocates with enhanced experiences

Implementation in RefRef

1. Create a new project using the B2C Subscription template
2. Configure your reward structure and tracking parameters
3. Set up custom referral pages and emails
4. Integrate with your subscription management system
5. Implement in-product referral touchpoints

Optimizing Your Program

Key Touchpoints for Referral Prompts

• After positive interactions (rating, review, support)
• Upon subscription renewal
• When discovering popular features
• After achieving success milestones with your product
• In regular account or usage summaries

Testing and Iteration

• A/B test different incentive structures
• Experiment with referral messaging and positioning
• Try various placements within your product and communications
• Test different reward delivery mechanisms
• Iterate based on conversion data

Measuring Success

Track these metrics in your RefRef dashboard:

• Participation rate (% of customers who refer)
• Share rate (average referrals per participant)
• Conversion rate (% of referrals who subscribe)
• Viral coefficient (new customers generated per customer)
• Payback period on referral incentives
• Retention rate comparison between referred and non-referred customers

Case Study: StreamFlix

Learn how StreamFlix, a video streaming service, achieved a 28% increase in subscriber growth by implementing a "Give 1 Month, Get 1 Month" referral program through RefRef, with strategic in-app placement and social sharing optimization.