Nuts & Bolts - Case Study: Hopkins Golf's Vision of Its Marketing Course
Hopkins Golf sees 20/20 all the time now. In January, the Los Angeles-based e-commerce company launched a referral program so its customers could get rewarded for what they were already doing—spreading word that HopkinsGolf.com was the place to buy tour-quality clubs, balls and clothes.
"What we have is a give-20-get-20," says Hopkins CFO Kevin Park. "When someone refers another person ... the referrer ... sends the code and then buys a club, that person gets a 20 percent discount. Then the person, the referee, gets a $20 credit."
Speaking in June 2014, Park was proud to say Hopkins Golf was celebrating its first year in business. So this referral program was instrumental in getting what any start-up company needs-new customers. (The top referral source for Hopkins Golf's new customers remains non-DRTV commercials on the Golf Channel, Park says.)
More than 300 customers came in from the referral program as of June, accounting for 8 percent of the golfers who received referral emails or social media offers from their friends. The recipients purchased products from the site and joined the email list for the business started by Greg Hopkins, the former CEO of club manufacturer Cleveland Golf.
Park says Hopkins Golf doesn't collect data on its social media fans and followers. Despite the fact that existing customers can post "$20 off" promotions on their Facebook timelines and their Twitter feeds, Hopkins doesn't collect information about the recipients until the point of purchase, he says.
When referrers click on the calls to action (which San Francisco-based referral marketing software and services provider Extole helped Hopkins create) they see a landing page with an explanation about the referral program. Then they're asked to log in or sign up before sending out the promos to their friends that could earn them $20 "Hoppy Dollars" per new customer. One in four of the site's existing customers did so as of June, bringing in an average of three new leads each.