Herschel Supply Co. is a global lifestyle brand that designs and makes utility products, such as backpacks, luggage, wallets, and apparel, for the modern traveler.
In 2019, the Vancouver BC, Canada-based lifestyle brand, Herschel Supply Co., sought a new way to attract more customers. Referral marketing seemed like the way to achieve that goal.
“We saw reports on referral marketing that stated approximately 90% of people trust brand recommendations from their friends, family, and peers, whereas only a third trusted ads,” said Naomi Shao, Email and Retention Marketing Manager at Herschel Supply. “These reports showed referred leads converted 30% better, so we definitely wanted to launch a referral marketing program.”
Having a referral program in place was important to Herschel Supply for several reasons.
“A referral program provides razor-sharp targeting for us because referral- based customers tend to be better matched to our services and products,” said Naomi. “It also invites current customers to share with their friends and family, and those new, referred customers have a higher lifetime value. Overall, it helps us supercharge both our growth and our natural or latent word-of-mouth with very easy-to-share tools—like those from Annex Cloud.”
Email and Retention Marketing Manager,
Herschel Supply Co.
Herschel Supply Co. selected Annex Cloud to help find new customers through word-of-mouth referrals on the company’s website. Now, current customers receive incentives, such as $20 toward a purchase at Herschel Supply, for providing friends’ email addresses so those friends can enjoy deals, too.
“It’s a win-win, because your existing customers receive a discount and they get to offer a gift to their friends and family,” said Naomi. “The process is convenient and automatic.”
The execution of Annex Cloud’s referral program was as simple and straightforward as the program itself.
“The implementation was pretty smooth and very easy,” said Naomi. “There wasn’t too much on our end that we had to really do. The Annex Cloud team did all the heavy lifting, and they’ve been absolutely amazing.”
Since the referral program’s launch in February 2020, Herschel Supply has enjoyed improved metrics regarding valuable leads.
“We’ve found that the new leads we’re acquiring by using Annex Cloud, tend to have a higher average order value for us as well as a better lifetime value,” said Naomi. “They also convert at a way higher percentage than leads that we acquired through paid advertising or any other facet.”
12K new leads
from the referral program
600% increase in conversion rate compared to other channels, such as ads and emails
38% increase in
average order value for referral customers
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