Krakatoa is a boutique men’s underwear brand based out of Los Angeles, CA.
They have been in operation for 4 years but were looking for a deeper understanding of who their customers are and what motivates them to purchase. They have a high repeat customer rate but were unsure how to find more customers like them.
After connecting with Formtoro, we took a look at their existing customer data then worked with them to design a customer journey aimed at data collection as well as promoting repeat sales earlier on in the journey.
The main challenges that we set out to overcome:
- Understanding the quality of traffic being driven by ad spend
- How to better personalize email
- How to shorten the time between purchases
Challenge 1: Understanding the quality of traffic being driven by ad spend
Krakatoa was spending money on Facebook and Instagram ads but only able to track their effectiveness based on revenue which was hit-and-miss.
They used a standard save 15% off your first order but were seeing low opt-in and it was difficult to track conversion in a meaningful way.
Customers had no reason to come back without further incentivization.
A decrease in organic social reach and rising ad costs required a new approach to understand who was signing up and what factors were leading to purchase.
We introduced incentive based sign ups, instead of trading a single use discount for an email address.
The visitor was prompted with an offer for a multi-use coupon code and prompted to provide their email address with the requirement to fill out multiple choice questions to unlock the full coupon.
This provided valuable data about the user’s underwear preferences, what mattered most to them in their underwear, how many pairs they owned, and when they were looking to purchase.
Using the data points collected, we were able to find patterns that showed us the trends leading to purchase.
We were then able to use the top producing revenue data points and look for the ad sets that were producing the highest combination of those answers.
This allowed us to optimize our ad sets and audiences by applying the baseline data.
Challenge 2: How to better personalize email
Krakatoa built automated email flows in Klaviyo but the content of the emails was a best guess related to the types of personas they had developed.
The best they had was progressive profiling hoping people would open the emails and click through them to collect more data.
Although Krakatoa had stellar open rates, it was still hard for them to understand who was purchasing their products.
With Formtoro, Krakatoa was able to gain four data points per signup allowing them to segment the subscribers before sending out the first email creating a personalized journey from the start which led to higher open rates and more engagement.
These data points were able to be used in other flows as well including overcoming objections in the abandoned cart emails as well as allowing for easy segmentation when sending campaigns.
Challenge 3: How to shorten the time between purchases
Using a single sign up form with a one time discount forced the user to be torn between using a one time discount on a new brand then having to pay full price but outside of an amazing experience really had no reason to come back.
Generic competing coupons were quickly reported to coupon websites and there was no means of tracking individual purchases.
Sales fluctuated based on the offers being presented.
Create a multi use coupon code unique to the sign up.
With Formtoro after looking at buying patterns we opted to go with a 20% discount that was extended for a period of one year that could be used up to 6 times.
Taking the pressure off the first purchase to save as much as possible and instead mapping customer behaviors to allow for people to try the brand at a discount then feel comfortable to come back and purchase again using that same discount.
By providing an available coupon code for multiple purchases we were able to track redemption of the coupon code to better understand who our top customers were and also retarget those that had purchased a single time to encourage further purchases.
We took a look at the best questions that would provide context for Krakatoa to understand the customer journey then we built a sign up process aimed at providing an experience that would promote repeat business while collecting data.
This allowed customers to get more targeted communications and allowed Krakatoa to optimize their ads based on the sources the data was collected from.
This also allowed for easier retargeting throughout the customer’s individual journey reducing the amount of spray and pray retargeting and increasing the personalization.
All decisions are made based on data collected.
Results after implementation
- 95.5% of people that signed up completed the entire form providing data
- 62% of people that added products to their cart completed their purchase
- 22% of people that signed up and provided data purchased
- 12.5% of people purchased a second time within a month
- 50% reduction in CAC in less than 60 days