Farm Hounds, a company dedicated to providing premium, transparently sourced nutritional options for pet dogs, has achieved significant success through a well-executed referral marketing program. By leveraging the power of word-of-mouth and integrating it with their email marketing strategy, Farm Hounds has seen a substantial increase in referral rates, lifetime referral sales, and overall revenue.
Launched in 2016, Farm Hounds set out to offer the highest quality, all-natural dog treats made from ingredients sourced from regenerative agriculture farms. Initially partnering with one farm, the company has expanded to collaborate with 12 farm partners, ensuring a consistent supply of top-tier products. As their popularity grew, Farm Hounds transitioned to an e-commerce model to enhance accessibility for pet owners nationwide. In July 2020, seeking to amplify their brand story and customer acquisition efforts, they implemented a referral program that ultimately generated over $600,000 in referral sales.
The Genesis of a Referral Strategy
The impetus for Farm Hounds’ referral marketing initiative stemmed from a customer survey designed to understand how new clients discovered the brand. The results were illuminating: 30-40% of responses indicated “word of mouth” as the primary source. This finding underscored the strong emotional connection customers felt with the Farm Hounds brand and their willingness to share their positive experiences with others.
“With 30-40% of ‘how did you find us’ responses being ‘word of mouth,’ we knew then that we built a brand that customers felt emotionally connected to,” stated Stephen Calsbeek, Co-owner of Farm Hounds. This revelation prompted the company to explore ways to formally support and incentivize these customer advocates, transforming organic recommendations into a structured marketing channel. The goal was to enhance the customer experience while seamlessly integrating referral efforts into their existing marketing framework.
An Integrated Approach: ReferralCandy and Klaviyo
Farm Hounds strategically integrated ReferralCandy with their Klaviyo email campaigns, creating a powerful synergy for customer acquisition and engagement. This approach allowed them to communicate program details and reward incentives directly to their existing customer base and email subscribers.
The implementation focused on enhancing the customer journey:
- Prominent Visibility: A clear call-to-action for the referral program was placed at the top of the homepage, making it easily accessible. The program’s reward structure – “GIVE $20 GET $20” – was designed to be both attractive and straightforward.
- Email Flow Integration: The referral program was embedded within various email flows, including post-purchase campaigns, ensuring that customers were reminded of the opportunity shortly after making a purchase. The KC Chow Agency played a key role in managing Farm Hounds’ email marketing and facilitating these referral emails.
- New Customer Onboarding: Information about the referral program was incorporated into welcome flows for new customers, informing them of the benefits of participating from the outset. This ensured that the referral program was perceived not as an isolated initiative, but as an integral part of the Farm Hounds brand identity.
- Consistent Reinforcement: Periodic reminders about the referral program were included in general email campaigns through banners, maintaining its presence and encouraging ongoing participation.
Measurable Growth and Enhanced Engagement
The strategic implementation of this referral program has yielded significant, measurable results for Farm Hounds. Since August 2021, the company has sent referral campaign invitations every 3-6 months, leading to a consistent uptick in new email and SMS subscribers, as well as an increase in overall customer acquisition. This strategy has been instrumental in acquiring over 100 additional customers per month, directly contributing to increased revenue.
“ReferralCandy has become an effective solution to helping Farm Hounds build our email and SMS subscriber list, acquire more customers, and generate more revenue for our store,” Calsbeek stated. “It has also complemented our overall marketing strategy, allowing our brand to offer ways for our loyal followers to participate in expanding the awareness of our brand to other dog owners alike and to stay engaged with Farm Hounds and our mission to promote natural dog treats and chews around the country.”
The success of Farm Hounds’ referral program highlights the profound impact of empowering satisfied customers to become brand advocates. By fostering these connections, the company not only expanded its reach but also deepened customer loyalty and reinforced its mission to provide superior nutrition for dogs. As Calsbeek aptly put it, “Getting customers to be the driving voice for how other customers find us has been huge for all metrics.”
