Learn how 2(X)IST enhanced their customer engagement and increased sales by implementing a Customer Data Platform (CDP) and using data-driven strategies.
Slug: case-studies-2xist-cdp.html
In the rapidly evolving landscape of e-commerce, understanding customer behavior is more crucial than ever. With the increasing need to personalize interactions and enhance customer experiences, businesses are turning to Customer Data Platforms (CDPs) to make sense of their data. This article explores how 2(X)IST, a leading name in men's underwear, leveraged a CDP to transform its marketing strategy and supercharge customer engagement.
For over three decades, 2(X)IST has been a pioneer in men’s underwear. The brand, managed by The Moret Group, also offers swimwear, loungewear, and tees. Despite its success, 2(X)IST faced a significant challenge: increasing repeat purchases without resorting to constant discounts. Christopher Peek, the digital marketing director, highlighted that men typically need reminders to buy underwear, but repeat purchases promise better margins due to lower customer acquisition costs.
2(X)IST aimed to implement targeted promotions using RFM (Recency, Frequency, and Monetary) segments. Initially, the team attempted to build a CDP in-house to analyze and segment their audience. However, the system couldn't integrate with marketing platforms effectively, leading to labor-intensive manual processes.
Enter Klaviyo CDP. In early 2024, 2(X)IST discovered Klaviyo's plug-and-play CDP capability, which updates RFM segments automatically without manual intervention. The choice was clear. As Christopher Peek noted, the ease of setup meant no developer hours were needed Klaviyo Case Study.
Klaviyo CDP not only came with pre-built performance dashboards but also offered intuitive data visualizations. Key features included a Sankey diagram to track movement between RFM segments and product analysis highlighting frequently bought-together SKUs. This integration made it possible for 2(X)IST to immediately unlock the potential of their customer data.
With Klaviyo CDP in place, 2(X)IST executed the RFM segmentation strategy they previously envisioned:
RFM-based Flows: They set up automated flows for the three RFM segments most likely to churn: "needs attention," "at risk," and "inactive." Each segment received personalized discounts and product recommendations derived from CDP insights, resulting in $15.2K in incremental revenue (Klaviyo Case Study](https://www.klaviyo.com/customers/case-studies/2xist-cdp)).
Meta Audience Restructuring: Using Klaviyo's integration with Facebook, 2(X)IST restructured their remarketing campaigns around RFM segments, achieving a 61% year-on-year increase in Facebook ROAS.
Direct Mail Campaigns: 2(X)IST tested direct mail campaigns targeting customers in the "needs attention" segment who had opted out of email. This initiative yielded a return on ad spend (ROAS) of 3.4x.
The implementation of Klaviyo CDP brought remarkable results. Within the first quarter of using the CDP, 2(X)IST achieved a platform ROI of 56.1x Klaviyo Case Study. These data-driven strategies allowed 2(X)IST to optimize spending on email discount codes and advertising, increase repeat purchases, and gain deeper customer insights.
Furthermore, having email, SMS, and CDP functionalities under one platform helped streamline data alignment and reporting. Peek emphasized the value of seeing the performance of each message with each RFM segment without juggling multiple systems Klaviyo.
The 2(X)IST case study provides several key takeaways for e-commerce and digital business owners:
Automate Data Processes: Choose a CDP that minimizes manual processes, freeing up resources to focus on strategy, not setup.
Leverage RFM Segmentation: Use automated RFM segmentation to drive targeted marketing efforts and improve repeat purchase rates.
Integrate Cross-Platform Efforts: Ensure your CDP integrates seamlessly with your marketing platforms to maximize its utility across email, social media, and other channels.
Test and Adjust: Constantly test different strategies (like direct mail or segmented promotions) to find what works best for specific customer segments.
Consolidate Tools for Efficiency: Consolidate [[your marketing efforts](health-and-beauty-ecommerce-marketing.html)](new-features-in-2022.html) with tools that can handle multiple functions (e.g., email, SMS, analytics) to reduce complexity and improve efficiency.
The journey of 2(X)IST highlights the transformative power of adopting a CDP tailored to their needs. By leveraging data-driven marketing strategies facilitated by Klaviyo CDP, 2(X)IST improved customer engagement and optimized marketing efficiency. For e-commerce and digital businesses looking to refine their strategies, considering a CDP is a step towards making data work dynamically in pursuit of growth and customer satisfaction.
For more insights on the benefits and applications of CDPs in marketing, explore CDP Net's use cases and Insider's platform features.