Multi-channel Retailer Sees 400% Increase In Welcome Message Revenue
Kaleidoscope Yarns

Kaleidoscope Yarns

Challenge

With high-quality products and attentive service, Kaleidoscope Yarns is the epitome of a successful small business. Their products appeal to a wide age demographic of mostly women, who passionately create and learn about their craft. Owner Jill Bujold, who herself has been an avid knitter since 1981, wears many hats, as most small business owners do. However, despite not having an e-commerce marketing staff on hand, she still wanted to plan and execute email marketing campaigns effectively.

Email marketing is vitally important to the company. Approximately 65% of their revenue comes from the e-commerce business, making email marketing paramount to the bottom line.

Solution

Refuting the notion that strategy is just for bigger companies, Kaleidoscope Yarns signed on with Bronto’s Marketing Strategy offering. The strategy behind campaigns is as important as the marketing platform, and this platform-strategy combination is fundamental to how Bronto helps its clients succeed.

Bronto recommended several strategies for Kaleidoscope Yarns, including implementation of a welcome series,expansion of their subscription form, and the revision of website creative. Kaleidoscope Yarn’s email list was one of the first places where Bronto’s Marketing Strategist made a real impact. Prior to working with Bronto, Kaleidoscope Yarns simply added subscribers to a list, and then included them in regular email blasts. Bujold says, “Our Marketing Strategist helped us to realize that it’s about building a relationship with our subscribers, and recommended we implement a ‘welcome’ email or series.” Kaleidoscope took a crawl-walk-run approach, beginning with a single email sent within two days of subscribing to their email list, which customers did both online and in the store.

Next, Kaleidoscope expanded their subscription form to collect pertinent information for more relevant communications with their subscribers. They changed the timing so that subscribers immediately receive the first email in a series, followed by two more emails of the course of ten days. The first message welcomes them to the list, provides a 15% off coupon and gives several ways for them to stay in touch. The second message includes a free pattern, and the third provides educational information, along with listing the top ten best-selling accessories. The entire process is set up using Bronto automation, which triggers messages to be sent when a subscriber opts-in. The busy Kaleidoscope team is excited about the efficiency provided by this automation.

In the final stage of the strategy, the creative on their website was revised, replacing “sign up to receive special offers” with the more specific “sign up and save 15%.” The sign-up landing page and thank-you pages were also revised.

Outcome

Strategy turned out to be a worthwhile investment for Kaleidoscope, because within just three months, they recouped the cost of an entire year’s worth of Bronto’s Marketing Strategy Service.

Welcome messages were the first to show a strong benefit- after one month with the initial round of adjustments and changes suggested by Bronto, revenue generated by the welcome messages had increased 150%. Then, when the creative revisions to the website and expanded subscription form were factored in, welcome-generated revenue had nearly quadrupled. That’s a mighty payoff from a few friendly and strategic emails.

Next Steps

Kaleidoscope Yarns has begun to look at automated, targeted campaigns to specific customer or subscriber segments, including last-purchase and never-purchase. The last purchase campaign would look at the amount of time since a customer last purchased and then email an offer based on what had been purchased. The never purchased campaign would identify subscribers who have yet to make a purchase and provide helpful, relevant information and entice them with a targeted offer.

Initial testing of both approaches has been positive, making Kaleidoscope Yarns excited about building these strategies out, creating more happy customers and continuing to drive revenue.