Dropbox achieved a staggering 3900% growth in its first 15 months through a simple yet effective growth hack – their referral program. This program has become a poster child for referral marketing, serving as a powerful case study for businesses seeking organic brand growth and sustainable marketing strategies.
Let’s delve into some key statistics:
- In September 2008, Dropbox had 100,000 registered users.
- By December 2009, that number had surged to 4 million registered users.
- Fast forward to September 2017, and Dropbox boasted an impressive 33.9 million registered users, a $10 billion evaluation, and $1 billion in revenue.
The growth Dropbox achieved from 2008 to 2009 is something every brand aspires to replicate. What’s fascinating is that Dropbox accomplished this by employing a tactic so straightforward that it almost seems too good to be true.
What Was Their Offer?
Dropbox’s offer was elegantly simple. As a cloud-based storage solution, their customers were primarily seeking cloud storage. Therefore, the most logical incentive was to offer more storage space as a reward for referrals. But there was a twist – this was not a one-sided referral; it was double-sided. Both the affiliate and the prospect stood to benefit from the referral, creating a sense of exclusivity and value for affiliates.
This approach resulted in a win-win-win situation for Dropbox, the affiliate, and the prospect.
How Did They Encourage Referrals?
The real magic lies in how Dropbox motivated people to refer others. While many brands now incorporate referral programs, they often face the challenge of consumer perception – “Affiliates, commissions, and rewards are for influencers or people with significant followings, not for me.”
Dropbox addressed this issue by empathizing with consumers and solving their problems:
- Integrated Referral Process: They seamlessly integrated the referral process into the user journey, making it easy and natural. Removing friction was a key factor in driving participation.
- Clear Rewards: Dropbox ensured that everyone understood the rewards. The program was clear, concise, and easy to grasp. Complexity tends to deter users.
- Simplified Sharing: Sharing was effortless, with no need to go out of one’s way to make a referral. The referral option was readily available on the dashboard page, serving as a constant reminder of potential rewards and referrals.
- Gamification: Dropbox implemented a fun back office that displayed each referred person and the corresponding rewards. This transparency and gamification element made the program engaging
In essence, Dropbox created a culture of Customer Driven Sales. They took a simple process and embraced it in a way that fostered community and sharing. This approach resulted in a remarkable 3900% growth in just 15 months, showcasing the power of organic and sustained growth in business.
This concept aligns with what Kwik offers. Kwik helps businesses create customer-driven sales by tapping into the often untapped potential of referrals and word-of-mouth marketing. With their 30 years of experience and an in-house platform, Kwik aims to boost revenue by an impressive 7-10%.
With our latest company seeing a 30% revenue increase in their first month of tapping into customer referrals.
Plus, they believe so strongly in Customer Driven Sales that you only pay if there are actual sales generated.
