Customer Acquisition: Sierra Trading Post’s Retooled Referral Program Sees Great Results
Cross-channel apparel and accessories retailer Sierra Trading Post (STP) invested significant resources last fall into retooling its customer referral program — called Get $10, Give $10 — to create a more user- and social-friendly platform for its customers. The result has been substantial growth in customer acquisition and program revenue.
STP’s referral program is very easy to use. Here’s how it works:
- An existing customer sets up a free account and invites friends and family to shop with STP.
- If those referred turn into a first-time customer, they get $10 off their first purchase.
- The referring customer gets $10 for each new customer it refers to STP.
Last November, STP reported customer acquisition was up 888 percent and program revenue increased nearly 1,000 percent. “Acquiring new customers is one of our top companywide initiatives,” said TJ Croissant, marketing manager for STP, in a company press release. “We connect with many of our customers socially, and our hope is that these loyal fans will spread our brand message to their friends and family. Of course, rewarding new and existing customers with gift cards helps too.”
On Feb. 21, STP launched a one-week sweepstakes around the Get $10, Give $10 customer referral program. According to the contest rules, visitors to STP’s website could be entered into a $250 gift card giveaway each time someone they invited to become a STP member created a free member account. The giveaway ran till Feb. 29. Members could invite others via email, personal URL or a social network, earning one contest entry for each referral who opened an account. The sweepstakes had 10 winners. Results of the contest weren’t available as of press time, but a quick look at the activity and mentions around the giveaway on STP’s social networking pages revealed that it was well received.