Are you curious about how Referral Marketing works in practice? In this case study, Mårten Åkeson, CEO and founder of the e-commerce company "Proteinbolaget", tells us what happened when they started working with Referral Marketing. On the way to becoming the leading player for sports supplements they have worked with Redeal to increase conversion and the number of returning customers.
Increased traffic through Referral Marketing
Today, Proteinbolaget uses Redeal to get existing customers to recommend new, in exchange for a discount code or free shipping.
- We are still working with the same kind of marketing as we did before Redeal. The difference is that we complement our other campaigns, for example through paid search and paid social, with Redeal. Referral Marketing (which is the basic idea behind Redeal) is a good way to capture and activate the loyal clientele that we already have, says Mårten.
- There is really no reason not to use Referral Marketing. Today we have mainly implemented Redeal on the "thank you" page after the customer completed a purchase, which we experience is very effective. We have also tested to create different landing pages via newsletters and SMS, where we send the customers to our webshop. This way, we not only increase sales and customer base, but also increase traffic to our site. In the future, we also have plans to capture traffic through ads on Google, because we can see that many googles on, for example, "Proteinbolaget discount code". Catching this traffic with Referral Marketing would be worth gold - right now we are testing ourselves and seeing what works, says Mårten.
“We are happy to give our customers discount codes. So why not take the opportunity to let the customers give us something in return?” /Mårten
More new and returning customers
So what has Proteinbolaget's Referral Marketing efforts resulted in? Without giving any concrete figures, Mårten states that both the number of recurring and new customers has increased since Redeal entered the picture. It is also possible to see a percentage increase in traffic. Mårten wishes to emphasize that Redeal has not only helped to increase sales, but also to create knowledge about Proteinbolaget's brand. Even if a potential customer chooses not to convert right after a recommendation, brand awareness is still created - and the next time the person in question is looking for something like dietary supplements, chances are that Proteinbolaget will appear top-of-mind.
“It is a nice way to promote yourself, instead of traditional advertising, you get a recommendation from a related party that certifies that our e-commerce is good. It becomes more credible.” /Mårten
Something that Mårten looks closely at is how many times a same customer makes a purchase. After starting with Redeal, the number of orders that a customer makes in one year has increased, which has been a specific goal for the company.
- Getting new customers to make a first purchase is not difficult. The hard part is to get them back and make another purchase, and then another... Redeal has helped us with this by enabling us to offer a customer (for example) a discount code or free shipping on the next purchase, in exchange for a recommendation to a friend or related party, says Mårten.
In e-commerce, repeat customers are extremely important, because the supply is large and most people make purchases in different places. Customers are usually not as loyal or faithful as they are in a physical store.
“Getting a customer to do the second, third and fourth purchases is perhaps our toughest challenge. It can take some purchases before the brand in question becomes top of mind with the customer”, says Mårten. “Our goal, for example, is to become top of mind when it comes to everything that has to do with training. Therefore, it is an advantage of a service like Redeal, which makes it possible to engage the already existing customer base. When it comes down to it, it's about word of mouth - and it's a powerful method”
A collaboration that keeps getting better and better
“I think Redeal has been extremely easy to work with. The collaboration works well and only gets better with time - as we test new ways and develop”, säger Mårten. “Almost all e-retailers offer discount codes, but by working with Redeal you not only get direct sales through the discount code, but also the value of Referral Marketing. In many cases, this means a new customer as an added bonus. It's a win-win for everyone involved! "
The goal for Proteinbolaget is to continue to grow at the same rate they did during the past year (by more than 100%). The plan is to maintain high growth even in the coming years and in the long term to look into entering other markets.
“Given that we put a lot of focus on increasing the number of repeat customers, Redeal will continue to be an important partner for us. We value word of mouth and Referral Marketing highly when it comes to bringing in customers who are similar to those who already shop with us. I think Redeal is an easy and obvious service, which does what it is supposed to do. A simple solution that gives great value.”
“Redeal is a growth company - just like us - which means that they grow fast and must be very flexible. They understand the importance of developing and driving the company forward. On several occasions they have provided advice on how we can use the service (for example in which channels) and helped us make the right decision!” /Mårten
Redeal develops referral marketing solutions for the future of digital retail
We have developed the digital solution that leverages one of the most important marketing phenomenons of all time - satisfied customers who recommend their favorite stores, products and services to their friends and family.
Jens Schill +46 (0)70-771 69 70, firstname.lastname@example.org, or email@example.com