Club L finds Klaviyo the perfect fit as the platform drives 33% of DTC revenue

---

Club L London is the go-to online store for women who are looking for a glamorous outfit that won’t break the bank. The British fashion label takes style cues from the catwalk and red carpet and is renowned for its statement designs and standout occasion wear. The collections are designed in-house and manufactured responsibly using quality fabrics, and their inclusive sizing and affordable prices make the brand very accessible. Club L has over 600K followers on Instagram and is frequently endorsed by celebrities.

Learn how the fashion label tailored the customer experience to improve conversion rates

Challenge

A couple of years ago most of Club L’s direct-to-consumer revenue was being generated via social media advertising and paid search. Email contributed little to the bottom line. With acquisition costs rising, the fashion brand wanted to reduce its reliance on third party sites and drive more revenue from owned marketing channels. The brand tried to do this with Mailchimp, but without success. 

Club L needed a marketing automation partner that could turn subscriber data into powerful, personalised email and SMS messages to drive sales and customer retention. Luckily, Klaviyo was the perfect fit.

Solution

Within a year of switching to Klaviyo, Club L had increased the brand’s revenue contribution from email and SMS to 33%. Two automated flows – the welcome series and abandoned cart – generate two thirds of that.

Klaviyo’s integration with Loyalty Lion means that Club L’s Rewards Club is fully automated too, with flows based on trigger events such as a customer referring a friend or changing loyalty tier. The fashion brand can also use loyalty data to build segments for campaigns, to invite the highest-value customers to a secret sale, for example.

Email marketing wasn’t a core part of our brand’s strategy until we onboarded with Klaviyo. Having the ability to segment customers with personalised content in both campaign and automations have been pivotal to enhancing the customers journey and growth of the channel.

Strategy

Club L combines well-timed incentives with personalisation to convert sales, drive customer engagement, and keep people returning to the store. The brand uses customer-first data in Klaviyo to make the messages highly relevant and compelling. This allows it to recommend outfits to subscribers based on the collections they’ve been browsing, and even the fabric colours they seem to prefer. 

The brand’s highest revenue generating flow is the abandoned checkout flow, whose strong performance is down to a lot of A/B testing. For high-value carts, an enticing time-limited purchase incentive is used to drive conversion. The first email in the flow is triggered within an hour while the iconic styles are still top of mind, and converts nearly 11%. A second reminder sent the next day converts a further 7%. 

The welcome flow uses a similar approach, offering subscribers a saving on their first purchase which converts 11% – 5x higher than industry benchmarks for the sector.

Club L uses other flows to drive engagement, including the birthday flow. Sending a birthday greeting is a popular loyalty tactic but the glam label has been more creative with the flow. Since many fashionistas use the celebration as an excuse to treat themselves to a new party dress, they receive a discount code from Club L in advance. 

Defining our retention strategy through continuous A/B testing and behaviour-based segmentation has allowed us to identify our most loyal, highest value segments. We’ve recently begun exploring SMS marketing, giving us more opportunity to target customers during peak trading periods and expand our database further.