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LSKD Doubles Their CLTV with the Yotpo Platform

Runners wearing LSKD activewear
Industry
Fashion & Accessories icon Fashion & Accessories
Platform Shopify Plus
Location Australia
Products
SMSBump
Reviews
Loyalty & Referrals
Visual UGC
0 x
CLTV with Yotpo
0 %
Of reviews collected via SMS
0 x
ROI on VIP access campaign
0 %
Repurchase rate via redeemers

About

LSKD is an Australian activewear brand that takes pride in keeping their customer community at the core of everything they do. They are in continuous pursuit of customer feedback and bringing customer-proven products to the market. Having built a community that shares their brand values of sports, fitness, and adventure, LSKD is committed to providing the highest quality sportswear and streetwear to support their customers' active lifestyles.

Challenge

Main Takeaways
As customer acquisition costs (CAC) and competition increase, LSKD saw an opportunity to create a single view of the customer that would allow them to engage with their shoppers more and help double down on their retention strategy.
With infinite touch points throughout the customer journey, LSKD needed a connected platform to re-engage customers seamlessly at each of these moments.
With customer feedback being of utmost importance for growth, LSKD needed to invest with a reviews partner poised to support their strategy.

About a year after launching their Loyalty and SMS programs with Yotpo, and migrating their reviews from Okendo, LSKD was ready to leverage the Yotpo platform suite. And for good reason.

Not only is customer acquisition costs at an all time high, but the market for high-quality, transitional sportswear to streetwear has become more competitive than ever. LSKD defines success as having a single view of the customer and making it easy for their customers to purchase from them again. The importance of building two-way relationships with customers at every touchpoint has been at the forefront of LSKD’s brand identity. With reviews playing a critical role in LSKD’s strategy, having this customer feedback and content separate from two important retention tools — Loyalty and SMS — was hindering their view of their customers.

Because LSKD trusted Yotpo and their success team to act as strategic partners as they continued to grow and adapt their strategies to the changing market, the brand knew they could depend on that partnership to do even more. Thanks to Yotpo, their loyalty program has allowed them to act on customer feedback and deliver a program that rewards customers for their repeat purchases. And with Yotpo SMSBump, LSKD saw 81x ROI on flows and 60x ROI on product drop campaigns.

With customer feedback and relationship building at the forefront of LSKD’s strategy, they needed to maximize their customer feedback and turn this post-purchase experience into an opportunity to drive repeat purchases.

Woman lifting weights

"Most don't realize how powerful it is to send a text. With everyone on their phones, you can actively engage with your community," says Jason Daniel, Founder & CEO, LSKD.

While LSKD was producing high returns with their original SMS provider, they were missing fundamental SMS capabilities that would allow them to connect with and grow their community through personalized experiences as scale. The brand craved more than the ability to send one-off campaigns to all customers — they needed key SMS platform elements like segmentation and a variety of top-performing flows that could support their strategy of driving value to accelerate business growth.

Headshot of James Reu of LSKD

”You can’t create a transactional brand anymore — you can’t be only about the first purchase. Retention has to be top of mind.”

LSKD logo James Reu, Ecommerce Manager

Solutions

Main Takeaways
To maximize their retention strategy, LSKD decided to grow their partnership with Yotpo and get the most out of the platform.
LSKD focused on collecting engaging and transparent feedback from their customers.
The brand started building a rewards program tailored to their customers’ needs after reviewing detailed customer feedback collected via SMS..
Understanding the value of tailored communication at crucial moments, LSKD used SMS as the engine of their retention strategy.

By leveraging SMS, the tool becomes an active line for the LSKD team to communicate with their customers about product launches, product feedback through review requests, rewards updates, abandoned carts, and more.

The brand’s loyalty program was built with strategic guidance from their Yotpo Success Team. Because of this, the LSKD team knows how important VIP tier progression is to their loyal customers. And they want to ensure that they leverage SMS to let a customer know when they’ve leveled up in tier status, what their benefits are, and when they have enough points to make a redemption.

Gaining new customers is more expensive and more challenging than ever. Even with incredible products and diversified engagement channels, LSKD strengthened their partnership with Yotpo and leveraged them to focus on their retention marketing goals. They were already seeing great success utilizing Yotpo SMSBump and Loyalty, and they knew they would receive the same trusted guidance and strategic support with their recent move from Okendo to Yotpo for Reviews.

LSKD and Yotpo are aligned in the fact that retaining a customer starts with an informed first purchase. With the help of the Yotpo customer success team, LSKD built out a review collection, engagement, and display strategy that has fostered an environment of two-way communication with customers. This enhanced collection and engagement strategy allowed potential customers to see social proof on LSKD’s product pages, and read honest and detailed reviews to inform their purchase decisions.

SMS flows from LSKD

The migration and onboarding experience were a breeze. "Yotpo made our transition easy from our other provider. We're not the SMS experts, so having an expert help us onboard to get the channel up and running quickly helped us see results fast and let us focus on our brand," says Daniel.

The Yotpo SMS CSM team has since become an integral partner in LSKD's SMS growth. Not only do they ensure SMS best practices, they also support the brand by strategizing campaigns that generate FOMO and excitement within the LSKD community to attract more SMS subscribers than the brand ever thought possible.

”In terms of the platform itself [Yotpo], it’s exactly what I envisioned; everything the team needs to optimise our retention strategy and post-purchase experience. The simplicity and ease synergizing the different tools is really easy and efficient.”

LSKD logo James Reu, Ecommerce Manager

Results

Main Takeaways
CLTV doubled since the launch of LSKD’s retention-focused strategies with Yotpo.
The brand saw an 83% repeat purchase rate amongst loyalty redeemers.
Cart abandonment flows targeted towards existing customers drive a 104x ROI for LSKD.
LSKD’s review collection rate has increased by 340% since migrating from Okendo.

The combination of Loyalty and SMS transformed LSKD’s retention rates. Before launching their Loyalty program, their repeat purchase rate was strong, around 40%, and their customer lifetime value was about $300. However, since launching their Loyalty program and using SMS to power the communication and reengagement of their Loyalty customers, their repeat purchase rate has skyrocketed to 83%. Plus, the brand’s CLTV from redeeming customers has more than doubled from the previous rate.

LSKD has thrived after being able to automate communication tailored to their Loyalty members throughout the customer journey. The seamless synergies between SMS and Loyalty allowed LSKD to easily remind customers to redeem their points — and congratulate customers on entering the next tier and showcase their new tier benefits. One of these key benefits for VIPs is early access to new products; their VIP early access SMS campaign drove 147x ROI. Tailoring messages to their loyal customers continues to be a pivotal strategy to drive repeat purchases amongst this cohort.

LSKD has also tailored their unique messaging to drive retention for existing customers through an abandoned checkout flow. This flow redirects existing customers back to checkout, and LSKD has successfully garnered 104x ROI on this flow.

Since migrating to Yotpo Reviews from Okendo, LSKD noted that their review collection has skyrocketed from about 200 to 300 reviews a week to over 1,000 a week. A significant contributor to this increased collection rate can be attributed to Yotpo’s capability of sending review requests seamlessly through SMS. In just a few clicks customers can leave a thorough review and upload related review images directly from their phone. Because of these synergies, 39% of reviews have been collected through the SMS flow. This review request via SMS flow has also proven to be highly valuable, driving 10x ROI.

Social proof has taken the LSKD team even further, allowing them to achieve their retention goals by gathering significant customer feedback, displaying it onsite for future customers, and ultimately, gaining a valuable first purchase. LSKD also actively responds to reviews and engages with their customers to create that two-way engagement for new and returning shoppers to see. In turn, customers who engage with reviews content onsite are 139% more likely to convert than customers who don’t engage with reviews content.

Headshot of James Reu of LSKD

”To have a successful retention strategy, you have to create relationships with your customers. Deliver value at every touch point, products and perks they actually want, and create a community — customers want to be heard, they want a connection.”

LSKD logo James Reu, Ecommerce Manager
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