No matter your industry, a strong ROAS strategy with the intelligence section of Klaviyo Advanced KDP or Marketing Analytics can drive significant results. Learn how to improve ROAS by implementing the following tactics:
- Build lookalike audiences based on top-performing segments to drive efficient acquisition.
- Re-engage customers in Needs Attention and At Risk segments to boost incremental revenue.
- Improve ad spend efficiency by excluding Recent buyers and high-frequency purchasers from targeted ads.
- Enhance ad content by leveraging RFM data to create more relevant, high-impact campaigns.
2xist achieves 61% YoY surge in ROAS with Klaviyo
2xist is a fashion-forward brand specializing in premium men’s underwear, loungewear, and activewear. With a reputation for innovative designs, high-quality materials, and attention to detail, 2xist has established itself as a men's apparel market leader. By integrating Klaviyo Advanced KDP, 2xist has streamlined its marketing strategy, driving higher retention, personalized experiences, and impressive returns on ad spend. Read their full story, featuring insights from Christopher Peek, digital marketing director for The Moret Group.
Here's how 2xist uses Klaviyo Advanced KDP to grow their ad spend.
- Better acquisition through lookalikes: 2xist focused on creating lookalike audiences based on their top-performing RFM segments, like Champions and Loyals. By mirroring these high-value customers, they could reach new prospects who were more likely to convert, acquiring more customers.
- Recapturing disengaged customers: 2xist used direct mail to reconnect with 6,000 Needs Attention customers who had opted out of email, earning a 3.4x ROAS and proving its power to reactivate disengaged shoppers.
- Improving efficiency: They optimized ad spend by excluding audiences that didn’t need to see additional ads. For example, they avoided offering discounts to Champions and Loyals, who often buy without incentives. This strategy reduced wasted spend and kept margins high.
- Enhancing ad content: “[W]e’ve fully structured our remarketing campaigns in Meta around RFM segments,” Peek says, leading to a 61% jump YoY in ROAS.
Nani’s skincare’s tactics for high ROAS and deep customer engagement
Nani’s Skincare is dedicated to helping customers achieve a radiant glow, whether for self-care routines or as a reward for loyal customers. They focus on delivering personalized experiences, from tailored product suggestions to engaging campaigns. Despite their efforts, Nani’s faced a challenge with low ROAS on some ad channels, prompting a strategic overhaul. By refining audience targeting through lookalike models, re-engaging past customers with enticing offers, and optimizing ad spend efficiency, they turned things around, ensuring their marketing dollars created more meaningful and profitable connections with both new and returning shoppers.
Here's how Nani uses Klaviyo Marketing Analytics to grow their ad spend.
- Better acquisition through lookalikes: Nani’s built lookalike audiences based on RFM Champions. Nani's showed carousels of top products. This helped them increase new customer conversions.
- Recapturing disengaged customers: For Nani's list of Needs Attention and At risk customers, they noticeda small yet engaged subset of window shoppers: customers who unsubscribed from email and SMS but frequented their site. Nani’s ran ads highlighting discounts, boosting engagement as these curious, yet disengaged, customers converted.
- Improving efficiency: By excluding Recent buyers from ad campaigns and reserving discounts for less active groups, Nani’s reduced ad spend. They maintained high margins while increasing overall ROI.
- Enhancing ad content: Nani’s refined their Google Ads by targeting users who were likely to engage with their brand with dynamic search ads, increasing visibility and driving more effective conversions. Using product analysis, NANI highlighted key bundles to entice new buyers.