The Client
A premium gift basket e-commerce brand serving both B2C and corporate (B2B) customers with an average order value of $454. Their business is occasion-driven — holidays, corporate gifting, and special events — meaning customers typically purchase only once or twice per year, making traditional subscription or loyalty models ineffective.
The Challenge
The brand's email marketing was underperforming relative to its potential. Email revenue sat at $346K, representing only 10.8% of total revenue with a 28.1% open rate. Their flow architecture was campaign-heavy (60% campaigns, 40% flows), segmentation was basic, and there was no system for identifying high-value customers versus one-time buyers. With 75–80% of Q4 revenue generated within a 36-day holiday shipping window, they needed a smarter system to maximize every customer touchpoint.
The Solution
Starting in May 2025, we built a comprehensive AI-powered email marketing system using Claude as a daily strategic partner. This wasn't about using AI for simple tasks — it was about creating a custom intelligence system that transformed the entire retention marketing approach.
- Built proprietary RFM + CLV segmentation system adapted for gift-based businesses, creating dedicated segments for holiday-only buyers, corporate gifters, multi-occasion VIPs, and win-back targets
- Transformed flow architecture with enhanced and new flows including Post-Purchase Holiday Cross-Sell, VIP/Champions Exclusive Holiday Flow, and Corporate Gifting Nurture sequence
- Created gamified pop-up strategy with 12 popup types (Spin-to-Win, Scratch-Off, Mystery Box, Quiz-Based Gift Finder) customized by visitor segment
- Connected Claude to Klaviyo, GA4, Asana, and Slack through MCP integrations, building a full business intelligence system across departments
- Built comprehensive Q4 projections using verified multi-source data — conservative, moderate, and aggressive scenarios that gave the client confidence to prepare for growth
The Results
- 273% email revenue growth — from $346K to $1.29M in 12 months
- Email attribution doubled — from 10.8% to ~30% of total revenue
- 42.4% open rate — top 5% globally
- 69% of email revenue from automated flows — up from 40% in 2024
- Q4 exceeded aggressive projection by 11% — actual Q4 revenue hit $2.4M vs $2.27M projected
- Client had to pause email marketing for 6 days during peak holiday season because fulfillment couldn't keep up with order volume — and we still beat the aggressive target
Key Takeaway
The real power of AI in retention marketing isn't using it for one-off tasks — it's building a comprehensive intelligence system through sustained strategic partnership. Seven months of daily work with Claude created proprietary RFM segments, projection models, MCP-connected business intelligence, and a flow architecture that generates revenue automatically. When we had to stop sending emails during peak season, the automated systems kept working — December flows generated 81% of email revenue. The foundation matters more than tactics, and the methodology that created 4x growth is the true competitive advantage.
