Background on the brand
This brand is a leading natural skincare company that uses organic ingredients from the Galilee valley in Israel to create therapeutic products with clinically proven results. It has grown from a local business to a global brand that sells its products in over 650 retailers across four continents. It also operates four flagship stores and an educational visitor center in Israel where customers can learn more about its products and philosophy.
What were the brand’s challenges before the partnership?
The brand had a loyal global customer base, but they were not fully utilizing their US-based email marketing potential.
Basic Klaviyo flows were in place but were not optimized for conversions or customer retention.
The brand only sent out campaigns once per week, which were insufficient to maximize sales and maintain customer engagement.
The email strategy did not segment flows based on customer behavior or preferences, leading to generic messages that didn't resonate with the audience.
The campaigns lacked frequency, variety, and personalization, which made them less effective.
The brand's deliverability and open rates were sub-optimal. They were struggling to improve their email marketing strategy due to limited time and resources.
The Chief Marketing Officer (CMO) was overwhelmed with managing everything without the right expertise or tools.
The brand wanted to increase their email revenue and retention with automated and data-driven emails but needed someone to take over their email marketing and provide insights and recommendations.
What was ZHS Ecom’s approach to solving this brand’s problem?
Leveraging our expertise in artificial intelligence and machine learning, we meticulously crafted a comprehensive email marketing strategy aimed at boosting the brand's email revenue and customer retention while preserving its unique identity and quality. We utilized data-driven insights and industry best practices to optimize campaigns, and through a thorough analysis of the brand's data, we implemented innovative tactics like the "two-day double-down" strategy. This led to heightened conversions and enhanced customer loyalty, increasing the lifetime value of the brand's customers. In addition, we introduced the Klaviyo Aggregate Score, a custom metric measuring campaign performance, enabling us to fine-tune the brand's email marketing strategy effectively. Our approach extended beyond traditional metrics, incorporating detailed analysis of optimal send times for each audience segment and utilizing TensorFlow to generate effective subject lines and preview texts. The use of word embeddings and our trained regression model enabled the conversion of textual data into actionable insights, driving the success of our robust email marketing strategy.
What roadblocks did we encounter along the way?
We encountered deliverability issues and low engagement, with some customers not receiving or opening their emails.To address this, we cleaned up their email list by removing inactive or invalid subscribers and created a Customer Winback Flow for those who hadn't interacted with the brand's emails in the past 90 days. This improved the deliverability rate and reduced spam complaints.We found that some of the brand's products had low inventory or were out of stock due to high demand. In response, we created a Back-in-Stock flow that informed customers when a product they had viewed or added to their cart was available again, which increased customer satisfaction and sales.
What were the end results?
37.43% increase to MRR by in the first 4 months of working together.
54.44% increased to MRR in the first 6 months of working together.
54.7% of total revenue attributed to Klaviyo.
2.01x higher flow revenue per recipient.
1.87x higher flow placed order rate.
1.24x increase to campaign revenue per recipient.
1.27x increase to campaign placed order rate.
1.25x increase to campaign open rates.
1.14x increase to flow open rates.
1.7x decrease to spam rates.
1.51x decrease to bounce rates.