Derric Haynie joined us to talk about how a referral program in an upcoming shipment notification led to 15,000 new subscribers every month and his favorite tech for subscription selling.
Derric is the Chief Ecommerce Technologist at EcommerceTech.io, an invaluable resource for researching, discovering, and buying ecommerce tools. He and his team help merchants track and manage their tools, build their tech roadmap, and hold providers accountable for performance.
If you're interested in checking out the EcommerceTech.io app, you can sign up for the Beta here.
After the recording, Derric shared a helpful formula to calculate Cost per Acquisition Referral (CPAr). If you're using or planning on using a referral program, you might want to copy this:
Cost per Acquisition Referral (CPAr)= COGS x 2 (since you are giving away one product to referrer and one to referree) + any shipping costs occurred (hopefully none) + any logistics costs occurred (typically a pick and pack fee).
Also worth noting is your referral coefficient. If it's .1 or 10%, that means that every 10 customers you get through paid ads at $X/acquisition, you get 1 at CPAr.
This session was packed with information, so be sure to catch the video replay on YouTube or listen to the audio version on your favorite podcast player.
Psst! EcommerceTech.io has a landscape report of 240 Shopify apps for Shopify merchants, broken down by category. Check it out here.
Session Highlights (links go to YouTube)
0:00 - Subscription Ecommerce Live intro
1:22 - Derric Haynie intro
5:53 - Derric’s journey to launching EcommerceTech.io
11:05 - The one simple tactic that led to 15,000 new customers a month, every month, for BoxyCharm
22:49 - Why you should get your customers excited before offering a referral program
28:44 - Understanding how referral products can affect your supply chain
34:44 - Temporary churn and on/off customers
45:29 - Tools and best practices for managing customer relationships
50:49 - EcommerceTech.io resources