liveBook · Manning

Referral

As explained in BDD in Action, Second Edition

Referral is the metric measuring how effectively users introduce other people to an organization's products or services.

Referral asks whether customers introduce other people to an organization’s products or services. Within the AARRR metrics—Acquisition, Activation, Retention, Referral, and Return—it identifies a potential path to growth through customers’ recommendations. section 4.4.1

To examine referral, ask:

  • Do customers recommend the service through positive reviews or comments? section 4.4.1
  • Would a refer-a-friend program give them a reason to invite others? section 4.4.1
  • What currently prevents them from making those introductions? section 4.4.3

Business flyers

An airline team finds that business flyers have no way—and no incentive—to invite their contacts to fly with the airline. That is a referral problem: the customers cannot readily help bring others into its ecosystem. section 4.4.3

How BDD in Action, Second Edition covers it

How deep it goes
Defines referral and examines incentives and impediments, but does not give a calculation or tracking method.
Examples
Illustrates referral with reviews, comments, refer-a-friend programs, and business flyers who lack an incentive to invite contacts.
What it assumes
Defines referral within AARRR without assuming prior familiarity with the metric.
What you can do after
Evaluate/understand it by identifying barriers to customer introductions and considering ways to encourage recommendations.
How it connects
Connects referral to Acquisition, Activation, Retention, and Return within AARRR, and to impediment mapping in a Pirate Canvas.
Cover of BDD in Action, Second Edition
liveBookmanning.com
Read BDD in Action, Second Edition on liveBook Get the book at manning.com

Related concepts

This explainer was generated by Manning's knowledge graph from the text of BDD in Action, Second Edition. The section links point to the parts of the book it draws on.