How KD helped an eCommerce beauty brand scale a subscriber list to 400k, generate a 25% conversion rate, and bring in $5.53M in revenue during Covid.

Industry

eCommerce beauty

Technologies

Klaviyo + Loyalty Lion

Objective

Convert traffic from Facebook ad campaigns to the subscriber list, increase CRO, and generate long term revenue growth with tactical email flows and compelling creative

The Company

The company is a growing eCommerce beauty brand founded in 2017. In the midst of the Covid-19 pandemic, the company remained focused on scaling up its email marketing channel despite unprecedented uncertainty in the market.

With significant investments in media buying, ad spend, and digital marketing infrastructure, the company used Facebook ads to drive a high volume of traffic to the website. KD helped convert the traffic into email list subscribers and ultimately, customers.

Despite unpredictable changes in consumer behavior and economic volatility brought on by the pandemic, the brand weighed the risks and built a highly effective acquisition campaign.

The Challenge

In March 2020, Covid-19 disrupted business operations around the world. It was impossible to anticipate changes in user behavior and consumer shopping patterns.

Doubling down on ad spend and building in discounts is a significant risk in uncertain times. It was important for the company to leverage the expertise of partners with proven experience scaling eCommerce brands.

As the digital ad campaigns increased website traffic, capturing new leads with compelling creative and email flows could bring in strong returns and increase brand loyalty.

Savvy use of Klaviyo’s capabilities would help the brand reach more customers consistently, and create the foundation for an effective, revenue generating loyalty program.

The Solution

The Facebook ad campaign, spearheaded by Sugatan.io, drove significant traffic to the website. In tandem, KD strategized, designed, and implemented Klaviyo email flows that optimized the ensuing traffic with a creative popup and email flow tactic: a Lottery.

The Lottery experience begins with a popup that offers a “mystery discount” in exchange for the user’s email address. The customer doesn’t learn the value of the mystery discount until they reach checkout, which entices them to follow through with a purchase.

Joining the subscriber list triggers the Lottery email flow and the discount remains eligible for 48 hours after opt-in. The customer only learns the dollar amount of the discount when they enter the unique code (delivered via email) or when they reach checkout.

The entire process creates a sense of urgency, engagement, and fun.

The Lottery email flow discounts were calculated based on ad spend per lead. The idea was that the ad and marketing spend would support long-term customer acquisition and influence repeat purchases.

The discount offers ranged anywhere from $5 to $100. 80% of the discounts redeemed were on the lowest end of the discount scale.

This type of discount offer accomplishes several objectives at once: optimize the Facebook ad campaigns by quickly converting website traffic into email list subscribers, offer a unique experience to delight, engage, and convert users, and generate revenue.

For users, partaking in the lottery creates an initial commitment which often leads to following through and solving the mystery. This is referred to as “commitment bias.” It keeps customers close because they are compelled to complete the experience.

Due to the way the popup and email flows were designed, more customers took advantage of the discount offer and reached checkout.

This strategy was a clear winner. The lottery offered a highly engaging experience for customers and the email flows sustained active engagement.

The Result

Firstly, KD was successful in building an email list and capitalizing on instant growth during a pandemic. Lottery lists are typically assessed at a lower value, but this particular effort brought in a strong ROI.

The first email generated a 62% open rate with a 42% click rate, resulting in 11.5% of users placing an order.

The resulting revenue was $4.93M from the Lottery email flow.

For mobile users, 1.76M viewed the popup form, and 411.56K subscribed. The total submission rate was 23.4%.

For desktop users, 303.73K users viewed the popup form, and 36.69K subscribed. The total submission rate was 12.1%.

Between March and August 2020, the list size grew from close to zero to more than 400K.

In just 5 months, the subscribers, conversions, and revenue exploded as a result of the tactical Klaviyo flow design and the highly unique experience the lottery system offered, especially for mobile users.

The Impact

It’s not easy to look ahead during uncertain times, but a strong eCommerce email strategy can bring in a significant payoff.

The exponential list growth also stimulated the Loyalty Program with measurable increases in customer retention and brand loyalty.

KD had Loyalty Lion set up and activated prior to launching the Lottery. The company was able to generate even more revenue with return customers who signed up for the loyalty program in addition to the Lottery.

Throughout 2020, 44K new members joined the loyalty program. Loyalty program purchases ended up bringing in an additional $1.2M in revenue.

This study illustrates how sophisticated strategies and implementation can elevate eCommerce brands quickly and sustainably, even in the middle of a global pandemic.