How Princess Awesome Uses Segmentation to Fuel Its Growth

Princess Awesome makes clothing for girls who like everything from twirling to trucks. I recently spoke with one of the brand’s co-founders, Rebecca Melsky, about how Princess Awesome came to be, and learned how the entrepreneurial duo behind the brand identified a market need and used segmentation to fuel its growth. 

 

How the brand identified a market need

When Rebecca Melsky was on maternity leave from her teaching job, she realized there was a need in the marketplace for fun girls’ clothing. 

“If a girl likes purple and trucks, she should be able to wear a dress with purple trucks,” said Rebecca. 

Rebecca pitched the idea for the business to her friend Eva St. Clair who loved the concept, though they wanted to prove it out before investing too much time and money into the business. 

“Thanks to Eva’s strong sewing skills, we started designing and producing our initial product line in my basement. It took only six weeks after we launched our initial collection for it to sell out. This gave us the confidence we needed to pursue the business more aggressively,” Rebecca said.  

In February 2015, the duo set out to raise $35,000 through the crowdfunding site, Kickstarter, to fund their initial production. They ended up raising more than $215,000 and launched Princess Awesome shortly after in August of 2015. 

It took only six weeks after we launched our initial collection for it to sell out. This gave us the confidence we needed to pursue the business more aggressively.

Rebecca Melsky, co-founder, Princess Awesome

 

Why Princess Awesome made the move from Mailchimp to Klaviyo

When Rebecca and Eva launched Princess Awesome, they initially chose to work with Mailchimp for their email marketing needs.

“It took a few months of us doing some testing to realize we needed more guidance,” Rebecca said.

They sought out ecommerce experts who recommended Klaviyo, which they switched to shortly thereafter.

“This switch was hugely important to our success and we started seeing growth right after we made the transition,” Rebecca said. “Since we do a lot of email marketing with a very high repeat customer rate, Klaviyo has made it really easy to target customers based on their purchase history or help us reactivate people who haven’t purchased in a while.”

This switch was hugely important to our success and we started seeing growth right after we made the transition. Since we do a lot of email marketing with a very high repeat customer rate, Klaviyo has made it really easy to target customers based on their purchase history or help us reactivate people who haven't purchased in a while.

Rebecca Melsky, co-founder, Princess Awesome

 

How the brand uses segmentation and targeted campaigns to drive growth

Rebecca said much of their brand’s growth is due in large part to their ability to set up customer segments and create targeted campaigns.

The brand uses segmentation to run a variety of tests. For example, Rebecca said it’s not uncommon for them to create a segment of customers who made a purchase from a specific collection more a year ago and send them a message encouraging them to make another purchase from that same collection, maybe in a different size this time.

When Princess Awesome released a new line of adult dresses recently, they saw the power of segmentation first-hand. They created two segments: a general segment and a highly engaged segment. The highly engaged segment comprised people who had made at least four purchases, and despite it only being 10 percent of the size of the general segment, it generated eight percent more total revenue.

“Creating these revenue-driving segments takes only a few seconds and it really fuels our growth,”  Rebecca said. “Over the past year, we’ve seen 50 percent of our monthly revenue, on average, coming through Klaviyo.”

While the brand continues to grow year-over-year, Rebecca and Eva are still the company’s only full-time employees. They have people who help part-time with marketing and customer service, but they find a way to get everything done while forecasting and pacing the brand’s growth, and expanding their collection to include fun things like dinosaurs, math, and science.

Creating these revenue-driving segments takes only a few seconds and it really fuels our growth. Over the past year, we’ve seen 50 percent of our monthly revenue, on average, coming through Klaviyo.

Rebecca Melsky, co-founder, Princess Awesome

 

How Princess Awesome develops its sales forecast and marketing calendar

Klaviyo is more than a marketing tool for Princess Awesome. It’s the hub where they drive revenue growth and listen to customers. When planning out a quarter, Rebecca says she uses the data available in Klaviyo to build their forecast.

“I create lots of different segments to see how customers react to them. If I have 1,500 customers who have bought a dinosaur dress in the past six months and I send them a 20 percent off code, I look to see how much money that will bring in,” Rebecca said.

She constantly builds segments and campaigns like this. Instead of just looking at the total revenue each test brings in, she analyzes them more holistically to see how these types of segmented campaigns can positively grow the business.

“I push ourselves to make the most money possible without leaving any on the table because we know we shouldn’t send a blanket message to a mass list with a promotion. Odds are, some of those customers will end up buying from us anyways so we really try to target our discounts,” she added.

By listening to her customers and analyzing the results from these tests, Rebecca says she’s able to put strong action plans in place that drive the business forward.

“When I’m planning out a monthly or quarterly forecast and see a revenue gap we need to fill, I look back through my segmentation tests in Klaviyo to understand how and when we should send out another segmented campaign,” Rebecca said.

By having a library of tests and their results, Rebecca says she has the insight she needs to draw from to build out a forecast.

“Having this type of information on our customer base and a sense of how they’re going to react to certain promotions is a big reason why we’ve been able to grow Princess Awesome year after year,” Rebecca said.

 

"Having this type of information on our customer base and a sense of how they’re going to react to certain promotions is a big reason why we’ve been able to grow Princess Awesome year after year."

Rebecca Melsky, co-founder, Princess Awesome

 

What’s ahead for the brand

With the success of Princess Awesome, Rebecca and Eva are currently taking pre-orders for a complementary brand, Boy Wonder. This new brand offers fun clothing for boys in the same way Princess Awesome does for girls. They’ll have products available on their site in October.

Rebecca said their growth plan for this brand, and Princess Awesome, hinges on three main pillars:

  1. Build a strong welcome series that features an increasing ladder of discounts for new customers
  2. Release new products to current customers
  3. Run sales and promote them to the people who are subscribed to their email list

“We have and will continue to rely on Klaviyo to help us implement all three of these strategies to help us fuel growth,” Rebecca said.

The future for Princess Awesome and Boy Wonder looks as bright as the clothing they create.

 

Ready to drive measurable growth for your brand? Explore the Entrepreneur Growth Guide. 

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