How Referral Rock Transformed Customer Acquisition Through Referral Programs.
Company profile
Company business details
Motivation to build the product
The founders were motivated by the challenge of generating referrals for businesses, particularly in brick-and-mortar settings. They recognized the potential of leveraging existing customers to acquire new ones through effective referral strategies.Problem that their product solves
Referral Rock solves the problem of customer acquisition for businesses, particularly small and medium-sized enterprises. By enabling these businesses to implement effective referral programs, it helps them grow their customer base organically, which is crucial for their sustainability and growth.Their unfair advantage
Referral Rock's unfair advantage lies in its focus on non-e-commerce businesses and its user-friendly platform that simplifies the management of referral programs, along with personalized support for customer engagement.Strategies
Idea Validation Stage
Customer Outreach for Validation
Josh Ho validated the idea for Referral Rock by reaching out to small businesses he had contact with, including family, friends, and local service providers. He sent them a survey and incentivized participation with a gift card drawing for every 10 responses. This direct engagement helped him understand the pain points of potential customers and confirmed the need for referral program software tailored for non-e-commerce businesses.
Pre-Launch (Product Development & MVP)
Market Research through Observation
Before launching Referral Rock, Josh Ho conducted market research by observing real-world interactions in a car dealership. He noticed how a customer mentioned a referral from a friend to a salesperson, which sparked the idea for a referral tracking system. This observation led him to explore the lack of referral solutions for non-internet businesses, ultimately guiding the development of his product.
MVP Development and Market Research
Josh Ho, the founder of Referral Rock, identified a gap in the market for automating word-of-mouth referrals after overhearing a conversation at a car dealership. Despite initial feedback from prospective customers being lukewarm, he decided to build a Minimum Viable Product (MVP) using a combination of different tools and technologies. This approach allowed him to quickly develop a product and start spreading the word about it, leading to the acquisition of around 500 users over 18 months.
Building Initial Product and Inside Sales
Josh Ho, the founder of Referral Rock, started by building the initial versions of the product himself, which allowed him to have a hands-on understanding of the product's capabilities and limitations. After launching a self-service product, he quickly pivoted to conducting inside sales calls to better connect with potential customers and understand their needs. This direct engagement helped refine the product and sales approach, ensuring that the offering was aligned with market demands.
Launch Stage
Initial Pricing Strategy
When Referral Rock was launched, it started with a pricing model of fifty dollars a month. This initial pricing was aimed at small businesses, but Josh quickly realized that many of these businesses did not see the value in paying that amount for the service. This feedback prompted him to adjust the pricing strategy to better align with the perceived value of the service, which later evolved to target businesses that could afford a higher price point.
Learn more about Referral Rock
Growing a $2m p/y indie business - Josh Ho, Referral Rock
How Josh Ho Bootstrapped His SaaS from Zero to $70K MRR – with Josh Ho [217]
Hey-oh! I’m Josh Founder CEO of Referral Rock AMA