14 A/B Tests to Optimize Referral Marketing Funnels

A/B testing can boost customer acquisition by up to 4x within 6 months for SaaS companies and startups. Here are 14 tests to improve your referral marketing funnel:

1. Compare different referral offers
2. Try different CTA locations
3. Compare landing page designs
4. Test different referral messages
5. Try different sign-up forms
6. Test email subject lines
7. Compare email content
8. Test follow-up timing
9. Compare social sharing options
10. Test reward delivery methods
11. Compare reward types
12. Test post-referral follow-ups
13. Test referral program visibility
14. Compare user guides

Quick Comparison:

Focus on testing referral offers, messages, and program visibility. Track referral rate, conversion rate, and customer lifetime value to measure success.

What is a Referral Funnel?

A referral funnel is a tool businesses use to track how well their referral program works. It shows how customers move through the referral process, from learning about it to bringing in new customers.

The main stages of a referral funnel are:

1. Awareness: Customers find out about the referral program
2. Consideration: Customers think about joining the program
3. Action: Customers make referrals
4. Conversion: New customers join through referrals

To make a referral funnel better, it's important to keep track of key numbers at each stage. Here's a table showing what to measure:

A/B Tests for the Start of the Funnel

Here are five key A/B tests to improve the beginning of your referral funnel:

1. Compare Different Referral Offers

Test various incentives:

A jewelry company increased referral revenue by 700% by changing from "Give $10, Get $10" to "Give 50%, Get 50%".

Tip: For items under $100, use percentages. For items over $100, use fixed amounts.

2. Try Different CTA Locations

Test these spots for your referral call-to-action:

• Top menu
• Bottom of home page
• User account area
• After purchase confirmation

A good CTA spot can double program participation. Try pop-ups at key moments.

3. Compare Landing Page Designs

Test these landing page elements:

• Layout
• Headline and text length
• Customer reviews and stats
• Mobile-friendly design

Keep it simple and clear with an easy-to-spot CTA.

4. Test Different Referral Messages

Try various ways to promote your program:

Test short vs. long messages and personalized content for different customer groups.

5. Try Different Sign-Up Forms

Test these sign-up options:

Find a balance between getting info and making sign-up easy. Simpler forms often get more users, but might lead to lower-quality referrals.

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A/B Tests for the Middle of the Funnel

Here are four key A/B tests to make the middle of your referral funnel better:

6. Test Email Subject Lines

Try different email subject lines to see which ones work best:

Check which ones get more opens and clicks.

7. Compare Email Content

Test these parts of your referral emails:

• Length (short vs. long)
• Look (pictures vs. text only)
• Personal touch (using names, past buys)
• Where to put the "click here" button

A home goods company got 61% more new customers by testing different discounts in their emails.

8. Test Follow-Up Timing

Try sending follow-up emails at different times:

1. Right after sign-up 2. 1 day later 3. 3 days later 4. 1 week later

Also, test how often to send reminders. Some people like more emails, others less.

9. Compare Social Sharing Options

Test these things for sharing on social media:

• Which platforms to use (Facebook, Twitter, etc.)
• Where to put sharing buttons
• Ready-made messages vs. letting users write their own
• Easy sharing on phones

Nail care company Olive & June found that customers liked using personal referral links (PURLs) more when they made them easier to see and use.

A/B Tests for the End of the Funnel

Here are five key A/B tests to improve the final stages of your referral funnel:

10. Test Reward Delivery Methods

Try different ways to give rewards:

See which method makes users happier and more likely to refer again.

11. Compare Reward Types

Test different rewards to see what users like:

Get Back Necklaces saw 7x more referral money by changing from "$10 off" to "50% off".

12. Test Post-Referral Follow-Ups

Try these after someone makes a referral:

1. Thank-you messages with reminders to share more 2. Updates on their referral status 3. Celebrate milestones (e.g., "You've referred 5 friends!") 4. Extra rewards for more referrals

Test these to see which gets more people to keep referring.

13. Test Referral Program Visibility

See how making your referral program easier to find affects participation:

ActiveCampaign puts all customers in their referral program and makes it easy to find in user accounts.

14. Compare User Guides

Test different ways to explain your referral program:

Try these to see which helps users understand and use your referral program best.

Conclusion

A/B testing helps make referral marketing funnels work better. By trying different parts of your referral program, you can improve how well it works and get better results. Our studies show that A/B testing can help you get 4 times more new customers through referrals in 6 months.

Focus on testing these main areas:

For example, a jewelry company made 7 times more money from referrals by changing from "$10 off" to "50% off".

Keep track of these important numbers to see how your tests are working:

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