Dropbox wasn’t always the cloud storage giant that we know today. Even though it had a unique idea of cloud storage, they were still struggling to get noticed. Their product was revolutionary as it allowed users to store and sync files across devices seamlessly, but they had a massive problem with acquiring new users.
Traditional advertising has always been expensive. It cost them hundreds of dollars per customer, which was neither profitable nor sustainable.
They needed a marketing strategy that could bring millions of new users organically, efficiently, and almost at zero cost.
The Viral Referral Program
Dropbox came up with a referral program that would leverage their existing users to bring in new ones. The process was simple: existing users could send a referral link to their friends and family, and if they joined Dropbox from the shared link, both the referrer and the referred would get free storage as a reward.
How email marketing became the silent hero of Dropbox’s success
Even with this great idea, there was an issue: just because people were given the opportunity to invite friends didn’t mean they would actually do it. People needed reminders and an easy way to spread the word. That’s when email marketing made everything possible.
When a Dropbox user sends an invite, their friend receives an email with a clear, friendly message: “Hey, your friend is using Dropbox and wants to give you free storage. Click here to join!”
It wasn’t a random promotional email, it was a personal recommendation in the form of an email. And because it came from a friend, it had a higher chance of being opened, read, and acted upon. No advertisement could replicate that kind of trust.
But that was only the tip of the iceberg. Dropbox realized the potential of email marketing and made sure it didn’t end with referral messages. They used email marketing to do much more.
Follow-up Emails – To Keep Customers Engaged
Let’s be honest: Many times, we see an interesting email and think to ourselves, “ I’ll sign up for it later,” and then we forget about it. Dropbox made sure its prospects didn’t slip through the cracks. If you opened the email but didn’t sign up, Dropbox would send a friendly reminder saying, “Hey, you’ve got free storage waiting for you! Don’t let it go to waste.”
When you finally signed up, they kept the momentum going by encouraging you to refer your friends, and the loop kept spinning.
Onboarding Personalised Emails
Dropbox knew that long-term growth wasn’t just about getting more users but instead, how to keep them. If people signed up but didn’t use their service, the whole strategy would collapse.
That’s why Dropbox sent smart onboarding emails. These engaging, actionable guides educated users on how to upload and share files and included clear calls to action, such as “Upload your first file” or “Share a folder with a friend.”
By making sure new users actually used Dropbox, these emails increased retention, which meant even more referrals over time.
A/B Testing – Small Tweaks Drive Big Results
Dropbox experimented with subject lines to increase open rates. Timing was also a key factor, they tested whether sending referral reminders after 24 hours or after 3 days led to more signups. Small tweaks like changing CTA wording and button placements also helped to increase click-through rates.
The Takeaway
Dropbox’s email marketing strategy wasn’t just effective—it was transformative.
- User Growth: At its peak, Dropbox was adding 2.8 million new users every month. Their referral program, powered by email, accounted for a significant chunk of that growth.
- Revenue Boost: By 2016, Dropbox was generating over $500 million in annual revenue. A huge portion of that came from users who upgraded to paid plans
- Cost Efficiency: Compared to traditional advertising, email marketing was cheaper. Dropbox spent just $230 to acquire their first 100,000 users, it was a fraction of what it would have cost them through traditional marketing.
Founders and new startups looking to grow their brands, without breaking the bank should take a page from Dropbox’s diary. Whether you’re running a SaaS company, an e-commerce brand, or a membership-based platform, smart email campaigns increase conversions and user retention.
