Brand Overview
Kitsch is a popular and fast-growing e-commerce brand known for its sustainable hair bars and accessories. Founded with a commitment to quality and design, Kitsch has quickly earned a loyal customer base, particularly among younger audiences like Millennials and Gen Z, who are drawn to the brand’s trendy aesthetics and authentic approach.
Despite their rapid growth in customer acquisition, Kitsch recognized the need to enhance their retention strategy to achieve long-term profitability and sustainable growth.
Kitsch was excelling in customer acquisition but faced challenges with a fluctuating repeat revenue. Rising acquisition costs and a high percentage of one-time buyers were impacting long-term profitability.
I collaborated with Kitsch from September to February to develop and implement a comprehensive retention marketing strategy, ensuring sustained progress and adaptation throughout the engagement period.
While their acquisition efforts were successful, their reliance on paid ads was becoming increasingly costly. The lack of a robust retention strategy meant they were not maximizing the potential of their existing customer base.
During the time I worked with Kitsch, total revenue jumped 90% Year-over-Year (YoY) while attributed revenue was up by 30% YoY.
To address these issues, I crafted a multi-faceted retention marketing strategy:
Tailored Campaigns, Personalized Recommendations: I divided Kitsch’s customer base into distinct segments to deliver personalized offers. High-value customers received VIP benefits, while new customers received educational content to increase product satisfaction.
Expanded Post-Purchase Flow Touchpoints: I optimized their existing post-purchase flows and expanded this so customers get automated emails at various points in their lifecycle journey. This means that aside from thank you emails, they also got product usage guides and tailored product recommendations to keep them engaged and drive repeat purchases.
Advanced Customer Segmentation: Beyond the initial segmentation, I continued to refine and adjust customer groups based on behavior patterns, feedback, and purchase history. This allowed for more precise targeting and ensured that customers received relevant content at the right times, leading to stronger engagement and retention and that there are no overlapping segments despite the near-daily sending.
Customer Feedback Loop: I also introduced regular feedback surveys, which allowed us to understand customer preferences and improve the how they engaged with the brand through email and SMS. This fostered a sense of community and enhanced brand loyalty.
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