What is invitation conversion rate?
Invitation conversion rate metric measures the number of invitees who used your referrals.
This metric lets you know how many Friends have acted on the referral via the program – signed up for your product or completed a purchase or any other action required.
This is one of the most important referral program metrics as it demonstrates if your referral program was a success or not.
How to calculate invitation conversion rate?
To calculate the invitation conversion rate, divide the ‘number of conversions’, that is, the number of invitees who opened the referral linked and signed up (or completed any goal you were aiming for) by the ‘total number of shares’ of referral. Lastly, multiply by 100 to get a percentage.
Formula for calculating invitation conversion rate
Real-life example of invitation conversion rate
Let’s say you run a subscription-based business. And 200 of your advocates (participants) shared your referral link with their friends.
Out of those 200 invitees, 20 signed up for a free trial of your software.
So, your invitation conversion rate will be: 20/200 x 100 = 10%
What’s considered a good invitation conversion rate? (benchmark)
An invitation conversion rate of 8% - 10% is considered good. The higher the conversion rate, the better. An invitation conversion rate of less than 4% is not considered good and rate of 15% or more is outstanding.
Strive to achieve an invitation conversion rate more than your current rate and align it with the industry benchmarks
Dropbox’s SaaS referral program resulted in four million users in 15 months and increased sign-ups by 60%.
Ways to increase your invitation conversion rate
- Make it easy for users to participate: Don’t make your referrals too complex that users think hundred times before carrying out the process. Your referral process should be easy to understand and seamless to carry out. Take inspiration from these: Best Referral Program Examples
- Showcase benefits for users: You’ll need to craft a copy that compels and showcase the benefits of your referral to the end user. It’s best to include mutual benefits, that is, for both the parties involved (participant and invitee).
- Use convincing incentives: Make your incentives more visible and convincing, and the friends will be more likely to sign up. Check out some interesting incentive ideas.
Also Read: Related Metrics
- Net Promoter Score
- Customer Churn Rate
- Customer Lifetime Value
- Customer Retention Rate
- Repeat Purchase Rate
- Customer Satisfaction Score (CSAT)
- Renewal Rate
- Customer Acquisition Cost
- First Contact Resolution Rate (FCR)
- Free Trial Conversion Rate
- Daily Active Users (DAU)
- Monthly Active Users (MAU)
- Average Revenue Per User
- Referral Program ROI
- Upsell Rate & Cross-sell Rate
- Viral Coefficient
- Participant Share Rate
- Net Dollar Retention
- Product Adoption Rate
- Sessions per User