CASE STUDY
Spacegoods delivers powerful ROI of 4.3x on each customer that is referred through Bubblehouse
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Solutions
Main takeaways
Bubblehouse and Spacegoods implemented a powerful referrals scheme coupled with redeemable points for their existing customers
Bubblehouse’s email marketing team helped the brand create an email marketing strategy around referrals to engage customers in the most effective way
Spacegoods found value in connecting referrals to Subscription Milestones and the points program to create more touchpoints with their existing customers
With the help of Bubblehouse, Spacegoods was able to build a sophisticated referrals program to increase customer acquisition driven by their existing customers. By rewarding customers for referring their friends and family to their site, Spacegoods built a powerful alliance of current subscribers who act as brand ambassadors from the brand.
Through an intuitive customer experience and powerful email marketing communication through Klaviyo, after 5 months of the program being live, more than 11% of Space Good’s active subscribers have sent out referrals to their friends and family, which is providing a strong additional customer acquisition channel for the brand.
Bubblehouse and Spacegoods strengthened their partnership through incorporating Subscription Milestones to continuously reward their customers for maintaining an active subscription and by implementing a points earning and redemption mechanism to help customers earn more for every order and every successful referral that they send out.
Results
Main takeaways
Since implementing a loyalty and referrals program with Bubblehouse, referrals has become a powerful customer acquisition channel for Spacegoods with over 2000 referrals sent out by existing customers with a 17% conversion rate. Currently, successfully referred customers make up around 4% of their total active subscribers after only 5 months of the program being live on the online store.
This new powerful customer acquisition channel can be attributed to a very straightforward customer journey and a clear standalone referrals page implemented by Bubblehouse, which seamlessly integrates into the branding and style of the Spacegoods brand. The wide selection of social media sharing options for referrals was also instrumental in the success of Spacegoods’ referral offering and contributed to 42% of the successful referrals.
With a strong referrals program that is tied into other loyalty program aspects for subscribers, customers who were referred by other Spacegoods subscribers spend 50% more than customers acquired by other means. The redemption figure on points also shows a strong impact on revenue for Spacegoods with customers who have redeemed points spending on average 4x more than customers who have not redeemed points.
An expertly led referrals strategy implemented by Bubblehouse allows for customer acquisition through referrals to be very profitable for Spacegoods. The ROI on each customer who was brought in through a successful referral is 4.3x meaning that the strategy that has been set up allows for referral to continuously bring in additional revenue for Spacegoods.