What is participant share rate?
Participation share rate metric measures how many of your referral program participants actually send referrals. It measures the percentage of advocates (participants) who took action and shared your referral program.
How to calculate participant share rate?
To calculate the participant share rate, divide the ‘number of participants who shared your referrals’ by the ‘total number of participants’ in your referral program and multiply by 100.
Formula for calculating participant share rate
Real-life example of participant share rate
You are running a referral program for your subscription based business. Let’s assume, 200 users participated in your referral program, and out of those, only 50 participants actually referred to their friends.
So, in this case, your participant share rate will look like: 50/200 x 100 = 25%
What’s considered a good participant share rate? (benchmark)
A good participant share rate is considered to be between 5% - 9%.
According to Friendbuy, a participant share rate of 3% or less is considered poor, around 10% is considered good and a rate of 30% or more is phenomenal.
Catapult’s referral program generated over 4,500 referrals in the first six months.
Ways to improve your participant share rate
- A/B testing of incentives: Incentives is what majorly drives a referral program. You can split test your referral program incentives to see which works the best and drives the most share rate among participants.
- Use compelling incentives: Make your incentives more visible and compelling, and your customers are more likely to promote your business. You can also offer rewards of very high value for super campaign advocates. Checkout some interesting incentive ideas.
- Make the process seamless: No one likes to perform complex tasks. You should focus on making your referral process as seamless as possible for your participants so they don’t face any roadblock while on their way to share your referrals. Take inspiration from these: Best Referral Program Examples
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
- Invitation Conversion Rate
- Net Dollar Retention
- Product Adoption Rate
- Sessions per User