In order to test referral offers, consider segmenting audience groups and offering one type of incentive to one group, and another to the other group: The goal is to find the sweet spot where you're maximizing referral conversions per dollars spent.
Marketers are constantly testing and optimizing offers to help attract new users through their most efficient source of advertising: existing customers. Nielsen found that 83% of consumers trust recommendations from friends and family more than any other source of advertising, so a strong referral can serve as powerful social proof for engaging new users. In order to test referral offers, consider segmenting audience groups and offering one type of incentive to one group, and another to the other group: The goal is to find the sweet spot where you're maximizing referral conversions per dollars spent. Look to successful SaaS brands for examples of best-in-class referral programs: Dropbox, for instance, began offering a two-sided referral program, in which both the current user and the referred user received 500MB of storage space for free upon the referred user's signup. The company was able to drastically reduce its ad spend to acquire new users, and increased overall signups by 60%.