#30 - Learnings from an 8 Fig Brand

Super meaty one today, and really excited to walk you through it (I’ve learnt a lot, along with my team on this one).

Quick question - how much sales are you currently running in your emails, and is there a line where it becomes too much?

In my opinion? Yes.

This is because you train your customers to become discount seekers, constantly looking for that next hit…

Whilst inflated numbers might look good on paper, your bottom line dwindles… Not a good spot to be in.

Here’s how we turned the ship round, and some of the tests we’re currently running ourselves.

1) Being More Intentional With Emails + Segmenting Everything

Less is more. At a list size of over a million, there’s technically 'nothing stopping us’ from sending out campaigns daily (or every two days) to generate revenue.

The problem with this is that you risk burning out your list incredibly quickly, which leads to a dip in engagement metrics as well as sending the wrong signals to Google/Yahoo.etc

Our list utilization currently sits at ~50%, which means every campaign becomes a sniper bullet hitting only the relevant customers and gaining the relevant insights.

One such insight that we’ve noticed is that whilst non-buyers have higher open/click rates, they also have a lower place order rate vs buyers (so we’re testing what kind of offers can be put out to bump this - whether it be flat discounts, BYOB, free shipping.etc)

We’re also leveraging a lot of personalization here through the use of dynamic content blocks, so even more targeted messages to help with that little incremental revenue bump.

2) Mystery Boxes

Not sure how many of yall are running this atm, but this is a gem.

Helps with the clearing of old stock, raising AOV, and also in testing new products.

The brand has perfected the unboxing experience too - with returning customers jumping at the chance to share their unboxing experience on socials, giving us a ton of content and angles to work with.

3) Running Holdout Groups to Optimize Offers

This is a test that every brand should run if you’re at least in the 7 figure range.

Essentially, you’re telling Klaviyo to send emails to 90% of users who’ve entered the flow, and NOT SEND to the other 10%.

The goal here is to see if users are as likely to convert with whatever offer you’re running, versus no offer at all (signifying something needs to change on our end).

We’re currently running this in our subscription flows for users who are already customers, to see if customers are likely to convert and purchase even without the bumps of our subscription flows.

4) Lowering Discounts for Existing Customers

Think cart/browse abandons, but giving new customers 10 - 15% off vs 5% off for existing customers.

This is because (in our theory) existing customers are already fans of the product and might just need a gentle nudge, versus new prospects that are taking a bigger leap.

I’m interested to see where this one goes.

5) Testing Out What Works

We have a product recommender quiz on the site that’s currently crushing it at the moment.

So we thought - what if we rolled out the same quiz on our Welcome Flow (versus our typical x% off?)

Think ‘choose-your-own-adventure’ style emails, where each ‘click’ gets them another email, and ultimately gives them the ‘recommended product’.

Another exciting one that I’m curious on how it’d perform.

And that’s a wrap!

Deeper dives like this take a little more time to put together as we need time to test as well as gather these learnings.

Regardless, hope this has been helpful, and it gives you a couple of ideas to toy with.

Feel free to reach out if you’ve any questions, want to bounce ideas, or have us take a look at the strategies you’re running (we’re always happy to).

Have a great weekend :)