About
PSD Underwear is built on two key brand values: authenticity and personalization. Their customer community uses clothing as an avenue of self-expression, and to PSD, underwear should be no exception. In line with their product and values, the brand aims to bring personalization to every step of their customer journey, and a consolidated marketing platform has allowed them to execute.
Challenge
With rising CAC and increasing competition over the last 12 months, PSD Underwear knew they needed to make a shift toward retention. By doubling down on personalizing the buyer journey, the brand could promote repeat purchases from the shoppers they worked so hard to acquire — they just needed the right partner to get them there.
PSD sought a solution that could not only provide top-tier technical products to enable the personalized journeys they wanted to create, but could also provide the strategic guidance to continuously drive retention down the line. If they could find all of that and more on one platform to keep their tech stack lean, they’d hit the jackpot.
”While we’ve always had a focus on retention, it’s now more crucial than ever to get it right. We want to make it as easy as possible for the customer we paid so much to acquire to continue to shop with us again and again.”
Solutions
PSD Underwear turned to Yotpo to provide the solutions they were looking for to drive retention. They knew they wanted to increase customer lifetime value, so they looked to leverage two key channels together: their loyalty program and SMS marketing.
By migrating to Yotpo SMS & Email from Klaviyo SMS, they could leverage extensive subscriber collection tools to immediately capture more customers across more channels, access more tools to communicate with international customers, and strategize on a best-performing segmentation strategy. The team created specific, loyalty-focused and reviews-centric SMS flows to personalize their communications to loyalty members — and it’s this level of segmentation using data from all of Yotpo’s products that was at the heart of PSD’s success.
”Having SMS marketing and our loyalty program so closely tied together has been the most substantial advantage in our retention strategy.”
Results
After migrating, PSD experiences a multitude of benefits: consistent review content generation, increased subscriber growth and revenue from SMS and loyalty, and increased retention rates as a result of strategic recommendations and integrated products on the Yotpo platform.
PSD sees the biggest success when their customers are engaged in various channels. Their loyalty customers who are also subscribed to SMS purchase 5x more orders compared to their loyalty-only customers. Not only does engaging these loyalty customers on SMS impact repeat purchase numbers, it also leads to greater redemption rates compared to Loyalty-only customers. Tailoring redemption reminders for customers on SMS pays off to the tune of 1.5x higher redemption rates.
In addition, PSD now sees 71x ROI on their personalized loyalty win-back flows reminding customers of their point balance, and by offering loyalty points for reviews (requested via SMS!), the brand increased review generation by 411%.
PSD started leveraging advanced segmentation, like sending abandoned cart SMS flows to existing loyalty members to remind them of perks, a strategy that drove 625x ROI (compared to 52x ROI when the same messages were sent to non-loyalty members in the same timeframe).
By working closely with the Yotpo customer success team to increase retention, PSD has been able to get the most out of the Yotpo platform, supercharging their retention rates and overall revenue.
”We feel like we have a strategic partner that we can leverage for guidance. A lot of the multi-tool platforms are not necessarily the best in breed, but Yotpo is an exception. If you want to focus on retention, go with Yotpo, its platform, and best-in-class products.”
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