This is a summary of the presentation by Arkadiusz Wiśniewski and Paulina Skrzypczak from the E-commerce Growth Meetup 2023. The full video, featuring this and other interesting presentations, is available here!

Your KAYA introduction and their rapid grotwh

Your KAYA is a Polish brand specializing in eco-friendly products for intimate hygiene and skincare. The brand is known for its direct communication style on intimate matters.

Remarkable Year-Over-Year Growth:

Your KAYA has experienced significant growth, with a remarkable 60% year-over-year increase in business metrics. This demonstrates a strong demand for eco-friendly products and highlights the success of the brand’s strategies in capturing market share and expanding its customer base.

Customer Base Expansion:

Despite being a startup, Your KAYA has managed to build a substantial customer base, which currently amounts to 200,000 individuals.

Dominance of Direct-to-Consumer (D2C) Channel:

The direct-to-consumer (D2C) channel, which involves selling products directly to customers without intermediaries, has become a key revenue source for Your KAYA . Approximately 60% of the company’s total revenue is attributed to this channel, demonstrating the success of the D2C model in driving business growth and generating revenue.

Subscription Model Contribution:

Your KAYA’s subscription model plays a significant role in its growth and revenue generation. By offering subscriptions for eco-friendly products, the company has created a recurring revenue stream that enhances customer retention. The popularity of this model indicates its effectiveness in driving consistent sales and customer loyalty.

Expansion into Offline Channels:

While focusing initially on online sales, Your KAYA has recently diversified its distribution strategy by expanding into offline channels. This move reflects the company’s commitment to reaching a broader audience and tapping into additional market segments.

 

Retention strategies

In Your KAYA employs various retention strategies, focusing on two main channels: Marketing Automation and META, along with a loyalty program.

Loyalty Program rewards customers with points for different interactions with the brand, such as placing orders, leaving reviews, or following the brand on Instagram. A highly promoted way to earn points is by referring friends to make purchases, which can earn the referrer 300 points, equivalent to 15 PLN.

Retention Strategy in Marketing Automation channel:

• Segmentation based on order type and time from last purchase,
• Loyalty program encourages customers to make purchase to gain extra points and reminds customers about them
• Cross-selling products to subscribers few days after a renewal or to one-timers after certain period from last order

Retention Strategy in META:

• Mostly no segmentation – targeting on all customers with generic communication
• Clients with a last order more than 180 days → discount for the next order
• Clients with the last order between 60 and 180 days → cross-sell of products they haven’t bought yet

 

Problem : “We saw no significant effects of our retention efforts”

Your KAYA ‘s struggle to observe significant effects from their retention efforts underscored a critical need for more effective customer engagement strategies. It was very important to measure if purchases were made by inactive or already engaged customers. They also found it very hard to identify how many of these purchases were truly incremental. Despite their efforts, accurately measuring the impact on sales and achieving incremental revenue remains a challenge. This underscores the urgent necessity for a comprehensive retention solution that can precisely target customer behaviors and preferences.

They decided to work with Sublime Analytics Platform , who offers the personalised expertise and tools needed to address this pressing need, providing Your KAYA with actionable insights and personalized strategies to enhance customer retention and drive sustainable growth.

Sublime is an analytics platform that helps identify growth opportunities for D2C brands like YourKaya. We integrate data from different systems and create actionable insights.

Arkadiusz Wiśniewski – CEO & Co-founder of Sublime Analytics Platform

 

What is RFM?

RFM is a simple, intuitive and powerful way to segment customers!

• Recency: when was the last time the customer made a purchase?
• Frequency: how often the customer makes purchases?
• Monetary: what is the average order value for that customer?

 

Collaborative Efforts to Enhance Customer Retention

We ran a Test!

A test was conducted using META ads targeting a segment of “falling enthusiasm” customers to reactivate them using discounts and loyalty program incentives. Here’s what was involved:

One segment and one communication channel

• Falling Enthusiasm segment
• Automatically sent to META every day

Calculate incremental revenue

• Segment divided into two groups: Treatment (85%) and Control (15%)

Run for two weeks and test two messages

• Loyalty program vs Discount

 

The results!

• 90% of customers matched by META
• 21k PLN in incremental revenue
• At a cost of 1 228 PLN with ROAS 16x
• Avg. frequency was 5.7x
• Variant 2 (discount) is the winner

Sublime’s RFM segmentation allows for precise targeting of customer behaviors and preferences, driving sustainable growth for brands like Your KAYA.

Arkadiusz Wiśniewski – CEO & Co-founder of Sublime Analytics Platform

The RFM model allowed them to identify customers most likely to churn and tailor communication accordingly. For example, “falling enthusiasm” customers received loyalty program incentives, leading to a 38% uplift in purchases.

 

Differences between Subscribers vs One-Timers

Data says it all: Subscriptions win for customer loyalty.

 

Future Steps

• Your KAYA plans to fully implement the RFM strategy, leveraging personalized communication to address the unique needs of each customer segment. The company’s goals include nurturing its best customers, transitioning new customers into loyal ones, and preventing customer churn.
• Future plans include conducting similar tests on marketing automation channels and refining the RFM strategy for improved customer retention.

 

Summary

Sublime Analytics Platform played a crucial role in helping Your KAYA optimize its retention strategy and achieve remarkable growth. By integrating data from various sources and using RFM Segmentation, Sublime provided actionable insights that drove targeted communication, resulting in significant incremental revenue. This success highlights Sublime’s potential for e-commerce brands seeking to unlock growth opportunities and enhance customer engagement through data-driven strategies.