Social influence is one of the major factors in fashion that helps to shape purchasing decisions. Consumers do not only buy clothing and footwear for themselves; they share, discuss, and recommend their favourite products with friends and followers. This social dynamic is particularly strong in the footwear market, where style and trends are often at the forefront of consumers' minds.
Schuh is one of the UK's leading footwear retailers and saw the powerful potential for brand advocacy that this presented within their customer base. By investing in referral marketing and launching a tailored Schuh refer program, Schuh managed to bottle the passion and enthusiasm of its customers for a boost in new customer acquisition and significant revenue growth. The success of the program was based on clear referral discounts and eligibility criteria; this way, users would understand the benefits and conditions. Using a Schuh referral code or coupon code, new users can save on their first purchase through discounts, while existing users earn rewards by referring friends, making the program easy to use and beneficial for all.
Recognising the power of these personal recommendations, Schuh decided to invest in a powerful referral marketing strategy. The brand appointed Mention Me, a leading referral platform, to power its program. What set Mention Me apart was its unique "Share by Name" functionality, enabling Schuh to track and reward face-to-face recommendations made by customers to their social circles. This functionality was key for Schuh, since it was the missing piece to directly drive their desired business outcomes by capturing offline recommendations.
Schuh realised that to win in the competitive footwear market, they had to make sure that their referral program easily blended with customers' lives, especially in the digital space. Social media—most notably among younger audiences—is, of course, a key enabler of these discussions. According to a recent report by Retail Dive, a massive 80% of purchases from Generation Z are influenced by social media. In this regard, it was understood that Schuh needed a referral solution that could provide and enhance social media sharing to let their customers share word-of-mouth recommendations about the brand and favourite shoes by referring them using a unique referral link. By sharing a referral link on the site, new customers could enjoy benefits, while existing users received additional incentives for referring new customers.
Referral marketing, if done properly, yields various benefits for retailers such as Schuh. By taking advantage of their customers' trusted positions in their social networks, Schuh established a referral program that seemed natural, instinctive, and deeply integrated with the daily lives of its customers. The results were, therefore, obvious: not only did Schuh gain new customers, but those customers were far more engaged, more loyal, and more likely to repurchase.
With a referral program, an incentive may include a friend discount under certain criteria, like referring a friend who could make a qualified purchase; thus, it will also allow the discount on future purchases, too.
Moreover, referral programs afford an opportunity for targeting customers that are likely to yield high lifetime value. Usually, referred customers tend to have a higher spend on products or services, purchasing frequency, and earning against redemption offered by the referred programs. These rewards for their referring and new usage activities also include discount coupons for active participation of both groups.
Schuh's success with its referral program is a modern case of how retailers today can use the power of social influence and personal recommendations to fuel growth. At the same time, however, Schuh's case is not about the implementation of a referral program but about using referral marketing within a broader customer acquisition and engagement strategy that gives participants more rewards. By providing more rewards for each successful referral, Schuh incentivises participation and promotes a sense of earning potential through the program.
New users can benefit from discount codes upon signing up, and existing users can earn rewards through Schuh referrals. The process of using Schuh referral links and codes to save money is straightforward, and users are encouraged to share these opportunities with friends to maximise savings and rewards.
For retailers considering implementing a referral program, Schuh’s success offers several valuable lessons:
Incorporating these insights into their referral program helped Schuh create a winning strategy that not only generated significant revenue but also fostered deeper connections with their customers.
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“In a short space of time, we've seen great results from the programme. We look forward to working with Mention Me to optimise it even further.”
Deputy Head of eCommerce (Trading), Schuh
