Learn how Proozy increased revenue by 1000% per SMS recipient by switching to Klaviyo

Customer: Proozy   Industry: Apparel and Accessories   Platform: Shopify Plus

 

For a quick read on how Proozy decreased sends and increased revenue, download this condensed version of the full length case study.

Customer: Proozy
Industry: Apparel and Accessories
Platform: Shopify Plus

130,000 SMS subscribers
2.7 x increase in average revenue per recipient after switching to Klaviyo
Up to $0.70 revenue per recipient on targeted text messages

Founded in St. Paul, Minnesota in 2006 as a wholesaler focused on golf gear, Proozy is now known for its deep discounts on brand name sports apparel and athletic gear. Proozy helps its customers shop like a pro by offering some of the lowest prices available because of its partnerships with brands like Oakley, Reebok, Spyder, and more.

Proozy has struggled with its SMS (short message service) marketing, unable to segment its subscribers, with no flows and limited visibility into its metrics. With a pending expansion into the home and pet categories, Proozy needed to have individualized marketing messages delivered to each segment.

By making the switch to Klaviyo, Proozy can now create personalized customer experiences through powerful segmentation and automated flows—ultimately decreasing total sends and increasing revenue.

“Making sure that our customers are seeing the products that they actually want has been a game-changer. We finally realized what we could do with SMS—and Klaviyo helped to take us to the next level.”

Alex Case

ecommerce manager at Proozy

 

 

Stunted SMS growth with limited metrics and no segmentation

The original SMS platform Proozy used was very limited—the only metric available was total revenue. It was such a rudimentary tool that the team at Proozy was unable to see if someone unsubscribed from their texts or if they clicked on a call to action (CTA)—and they had to manually calculate revenue per recipient (RPR).

And all of Proozy’s SMS subscribers received the exact same text messages—a big problem for a business that’s expanding its categories. When the team at Proozy sent out general promotions to their list of 130,000 SMS subscribers, it was missing out on potential revenue from new customers in the home and pet categories.

 

How Proozy uses Klaviyo to level up their SMS experience

With Klaviyo, Proozy now targets customers based on purchase history and preferences. For example, a customer who previously purchased sneakers will get a text about the latest drop from Nike, while a customer who browsed the home category will get a text about a sale on linens. Proozy ends up sending fewer texts, but they’re being sent to the right people.

With insights into things like revenue per recipient, unsubscribe rate, and click rate, Proozy now sends more content that converts and optimizes messages for better performance.

“We were already using Klaviyo for our email flows, so it was really easy to have everything in one spot. You don’t have to connect Klaviyo to another tool or to Shopify—it’s seamless. It just made a ton of sense to switch.”

 

Segmentation reduces the number of sends and increases revenue earned per recipient

Since Proozy was already using Klaviyo for email, the brand knew how effective data-backed segmentation could be. Proozy already has data on its customers, so it only makes sense to send targeted SMS messages that their subscribers may act on.
Before switching to Klaviyo, Proozy’s mass texts to the whole subscriber list earned the brand ~$0.06 RPR. Within a few weeks of sending SMS texts on Klaviyo, that grew to an average of $0.16—a 2.7x increase in RPR.

Segmentation success is obvious when looking at Spyder—a luxury brand that Proozy carries. Spyder fans are a small cohort of Proozy customers, so it never made sense to text the entire list of their subscribers with Spyder promos.

“If you’re someone that loves to shop 90 Degree women’s leggings and we send you a Spyder puffer jacket—that sale’s not going to happen.”

 

Now that Proozy can segment with Klaviyo, the team can send texts to Spyder superfans and get a whopping ~$0.70 RPR and 30% click-through rate (CTR).

 

Automated flows make for a personalized customer experience

Without automated flows, Proozy’s new subscribers received the next text message in the marketing queue—It’s like joining the middle of a conversation and trying to catch up.

“The third-party app we used for SMS didn’t have any flows—you couldn’t even do a welcome series or a browse abandonment. That’s SMS 101. Just being able to do segments and flows is a big part of why we transitioned.”

 

Proozy now also has an SMS-specific welcome series to introduce new subscribers to the brand and encourage a customer’s first order. Just one month after turning on its welcome flow, Proozy has seen an average order value of $74 from new subscribers who convert.

Proozy also sees the value of integrating email and SMS into the same flows. The brand recently added SMS branches to its existing browse abandonment and cart abandonment series. That way, if the first message doesn’t lead to a purchase, Proozy can reach out to customers on a different channel.

 

A/B testing their way to success

Every ecommerce marketer knows that the best way to find what works is to A/B test every aspect of the messages you’re sending to your customers. But on their last platform, Proozy had to guess what worked.

With Klaviyo, Proozy can A/B test the message text, send times, number of messages in a flow, SMS versus email, and one of their current tests: SMS versus MMS.

SMS is simply a text-only message up to 160 characters. MMS (multimedia messaging service) means that the message has a file attached, like an image or video.

It’s more expensive to send MMS messages compared with SMS messages, but Proozy’s ecommerce manager says that if the return is worth it, they’ll use MMS more frequently.

“Obviously, it’s three times the cost—but if it’s showing the value and the return, we’re going to switch to that.”

 

Robust metrics give full visibility into SMS performance

With Klaviyo’s performance dashboard, Proozy can get detailed data at the channel and campaign levels.

Before switching to Klaviyo, the team at Proozy couldn’t see even the most basic metrics.

“It’s exciting that we can actually see the unsubscribe ratesnow.”

With insight into its revenue per recipient, unsubscribe rates, and click rates, Proozy can now send more content that converts and tweaks its messages for better performance.

 

The future of SMS at Proozy is scalability

Klaviyo enables Proozy to easily scale its SMS channel. And as the Proozy team looks ahead, they plan to expand their SMS bandwidth.

“We have all the tools we need with Klaviyo. The floodgates are open to endless opportunities to do everything. The future for us at Proozy is to grow the team and our business.”

Now that the team at Proozy has complete visibility into metrics, A/B testing, and integration with its email campaigns—they can make the most of their SMS channel to grow their business.

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