Boosting sales through referrals while preventing program gamification
Company
Pura Vida sells handcrafted bracelets. Referral marketing is a core driver of customer acquisition and engagement
Headquarters
La Jolla Amago, CA
Industry
Accessories
Timeline
Pura Vida worked with a Referral platform, which claimed to drive 10% of total sales.
The former referral platform lacked the ability to accurately report on results.
When launching with Talkable, Pura Vida kept the same two-sided reward offer.
Talkable determined that self-referrals were inflating the 10% revenue figure claimed by the former vendor.
Talkable is driving 12% of total revenue and Pura Vida is confident that fraud has been virtually eliminated.
Client objective
Pura Vida worked with a popular vendor, which claimed to be driving 10% of total sales from referrals. The sales revenue figure sounded promising, but the team was suspicious that unauthorized transactions might be inflating this figure. Pura Vida needed to find a more robust platform with the ability to run campaigns with greater incentives without the fear of being ripped off.
Solution
The Customer Success team at Talkable advised Pura Vida to pursue the same offer, confident that the platform would outperform the prior vendor. Talkable explained how its fraud prevention algorithm learns from each transaction, and adapts to prevent unauthorized rewards from being issued. Pura Vida provided Talkable with data logs from their prior vendor to perform a fraud detection assessment.
Results
- Talkable analyzed historical data provided by Pura Vida and determined that the prior vendor’s 10% revenue contribution claim was exaggerated (see diagram)
- Talkable was able to dramatically increase performance, while keeping the offer constant by introducing better creative, increasing campaign visibility, and optimizing with A/B testing
- By leveraging the Talkable platform, Pura Vida is able to drive 12% of total sales revenue from referrals, while preventing unauthorized purchases
Working with Talkable has been extremely positive. We started at zero and quickly got to a good place
