RAF program generates 15% increase in new customers
Jon Richard is a UK-based fashion jewelry brand known for offering a wide range of high-quality, stylish, and affordable jewelry. The company designs and sells various jewelry items, including earrings, necklaces, bracelets, rings, and hair accessories. Jon Richard’s products cater to various styles, from everyday wear to more formal and occasion-specific pieces, making it popular among fashion-conscious individuals seeking statement jewelry or elegant, versatile pieces.
Jon Richard operates primarily through its ecommerce platform, offering customers the ability to shop online for home delivery or click-and-collect at selected stores. They also have a presence in major department stores and independent retail outlets across the UK.
The brand is recognized for its commitment to delivering the latest trends in jewelry, with a focus on providing both affordable and premium options to suit a variety of tastes and occasions. Their collections are often aimed at women seeking contemporary, stylish pieces that complement different outfits, whether casual, professional, or formal.
Jon Richard is also known for its seasonal collections, often inspired by trends in fashion, as well as for offering giftable jewelry pieces, making it a popular choice for shoppers looking for gifts for special occasions such as birthdays, holidays, or anniversaries.
challenge
The brand was experiencing low ROI from its Paid Social channels, leading to disappointing new customer acquisition rates that were falling short of expectations. The central challenge was finding a solution to bridge the gap and ensure a consistent influx of new customers into the sales funnel. While the company had invested heavily in paid social advertising, these channels were not generating the desired results in terms of bringing in new, qualified customers or converting them into repeat buyers, creating a significant shortfall in the year’s acquisition targets.
action
After reviewing the marketing budgets and customer acquisition targets, it became clear that paid social ads were not yielding enough cost-effective results in terms of customer conversions and engagement. I recommended shifting a portion of the underperforming paid social budget towards investing in a Recommend-A-Friend (RAF) program. Specifically, I suggested leveraging Mention Me, a platform known for facilitating customer referrals through word-of-mouth marketing. By tapping into the power of existing customers, the RAF program would incentivize them to refer new customers to the brand, creating a more organic and cost-effective pathway for customer acquisition.
A key component of the RAF program is offering rewards or discounts for both the referring customer and the referred friend, which not only boosts customer loyalty but also encourages more customers to participate in the referral process. I drew on previous experience with similar RAF programs that had successfully increased customer acquisition, expecting this program to drive an additional £1.3 million in ecommerce revenue by leveraging the advocacy of satisfied customers.
impact
The strategic investment in the Recommend-A-Friend program led to significant improvements in new customer acquisition. By reallocating the budget from paid social into a more targeted, customer-driven strategy, we saw a marked increase in high-quality referrals from existing customers. This referral-driven growth allowed the brand to scale its customer acquisition efforts in a more sustainable and cost-effective manner.
The RAF program provided an excellent return on investment (ROI), with new customers coming into the funnel through trusted recommendations rather than paid ads. Over time, this shift in strategy resulted in an additional £1.3 million in ecommerce revenue, showcasing the effectiveness of customer advocacy as a primary source of new business. Moreover, the referral program helped lower customer acquisition costs (CAC) and fostered long-term loyalty, as customers who refer friends tend to be more engaged and valuable over time.
By focusing on a Recommend-A-Friend approach, the brand was able to capitalize on the trust customers have in their friends and family, leading to higher-quality leads that were more likely to convert. This program not only helped meet acquisition targets but also drove organic growth and laid the foundation for ongoing success through referrals and customer retention. The results demonstrated that, in a competitive ecommerce landscape, programs that tap into customer networks and word-of-mouth marketing can provide a powerful engine for growth without the need for expensive paid ads.