1. Project Snapshot
A comprehensive revenue optimization campaign for a DTC fragrance brand that achieved a 60% increase in Customer Lifetime Value and boosted repeat purchase rates from 15% to 35% in 12 months through personalized lifecycle marketing and customer segmentation strategies.
2. Client Background
Aura Scentials is a DTC e-commerce brand selling a curated collection of artisanal perfumes, home fragrances, and scented candles.
Product Offering: Their collection is organized by scent families—Citrus, Woody, Floral, and Oriental—and sold individually and in curated discovery sets.
The Growth Paradox: Aura Scentials was skilled at social media advertising, driving significant traffic and first-time purchases. However, their post-purchase marketing was generic, leading to a massive drop-off after the first sale. The business was stuck on a transactional treadmill, constantly needing to acquire new customers to replace the ones who never returned.
3. The Challenge
While the marketing team celebrated strong ad campaign results, a deeper look at their Shopify and Klaviyo data revealed a worrying trend. The business was built on a foundation of one-time buyers.
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Low Repeat Purchase Rate: Over 85% of customers never returned for a second purchase. The “land and expand” model of introducing a customer to the brand and then upselling them was nonexistent.
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High “Discount Churn”: A significant portion of first-time buyers used a steep introductory discount and never purchased again, indicating they were loyal to the deal, not the brand.
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One-Size-Fits-All Marketing: Every customer received the same email campaigns, regardless of whether they had bought a light, citrusy perfume or a deep, woody candle. This led to low engagement and high unsubscribe rates.
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Marketing Focused on Price, Not Preference: The marketing strategy relied heavily on sitewide sales, devaluing the brand and failing to build a relationship based on a customer’s unique scent preferences.
4. Our Three-Pillar Revenue Optimization Strategy
We shifted the company’s focus from acquiring new transactions to building valuable relationships with existing customers.
Pillar 1: Deep Customer & Scent Profile Segmentation
We first needed to understand our customers’ preferences and predict their next move.
Scent Preference Scoring: Using Klaviyo and Shopify data, we automatically tagged every customer based on the scent family of their first purchase (e.g., preference-floral, preference-woody).
Lifecycle Segmentation: We re-categorized all customers into four actionable groups:
- Replenishment Candidates: Customers who purchased a product 60-90 days ago and were likely running low.
- Scent Explorers: Customers who purchased a “Discovery Set” and were prime candidates for a full-bottle purchase.
- At-Risk One-Timers: Customers who made one purchase over 120 days ago and had not engaged since.
- Brand Loyalists: Customers with 3+ purchases, ideal for early access and feedback.
Pillar 2: Personalized Upselling & Cross-Selling
We embedded personalized recommendations into our email and SMS marketing.
Automated Replenishment Flows: Instead of generic newsletters, we built automated email flows in Klaviyo. A “Replenishment Candidate” who bought a specific perfume 75 days ago would receive an email saying, “Running low on your favorite scent? Re-order with one click,” with a direct link to the product.
“Scent Family” Cross-selling: We built flows to introduce customers to new products based on their established preferences. A customer who bought a ‘Rose & Peony’ candle would, two weeks later, receive an email showcasing the ‘Jasmine & Lily’ perfume with the subject line, “If you love our florals, you’ll adore this.”
Gifting & Discovery Prompts: Around holidays, we targeted past buyers with campaigns focused on “Gifting for a loved one” or “Share your favorite scent,” turning loyal customers into brand advocates.
Pillar 3: Lifecycle Marketing & a New Loyalty Program
To build a lasting relationship, we moved beyond one-off discounts.
Shifting Focus from Discounts to Value: We reduced the frequency of sitewide sales and replaced them with value-added offers like “Free shipping on your next order” or “Receive a complimentary mini-candle with your purchase.”
The “Aura Circle” Loyalty Program: We launched a tiered loyalty program. Customers earned points for every purchase, which could be redeemed for products, exclusive discounts, or early access to new collections. This created a powerful incentive to make a second and third purchase.
The “Discovery Box” Subscription: We introduced a new subscription product—a quarterly box containing a curated selection of new and seasonal scents. This created a source of predictable, recurring revenue and a perfect offering for our most engaged “Scent Explorers.”
5. Results
The revenue optimization campaign fundamentally changed the financial trajectory of the business within 12 months:
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60% Increase in Customer Lifetime Value (LTV): The average value of a customer over their entire relationship with the brand grew significantly.
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Repeat Purchase Rate from 15% to 35%: The percentage of customers returning for a second purchase more than doubled.
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45% Increase in Repeat Purchase Revenue: Revenue generated from existing customers became a primary growth driver for the business.
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2x Higher Engagement on Segmented Campaigns: Emails sent to targeted scent profile segments saw double the click-through rate of the old “batch and blast” campaigns.
6. Key Learnings
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Your Best New Customer Is Your Last One: Focusing on retaining and nurturing your existing customers is more profitable and sustainable than constantly chasing new ones with discounts.
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Personalization is More Than a First Name: True personalization is understanding a customer’s preferences (like their favorite scent family) and using that data to make relevant, helpful recommendations.
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Build a Ladder of Loyalty: Give customers a reason to return beyond just another discount. A well-structured loyalty program makes customers feel valued and invested in the brand’s success.
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Create Rituals, Not Just Transactions: A replenishment reminder or a subscription box transforms a simple purchase into a predictable ritual, embedding your brand into the customer’s daily life.
7. Future Enhancements
- Implementation of AI-driven scent recommendations based on purchase history
- Expansion of the subscription model to include seasonal and limited-edition boxes
- Development of a customer community platform for scent enthusiasts
- Integration of social proof and user-generated content in lifecycle campaigns
8. Tech Stack & Tools Used
- E-commerce Platform: Shopify (customer data and purchase tracking)
- Email Marketing: Klaviyo (segmentation and automated flows)
- SMS Marketing: Klaviyo SMS (mobile engagement)
- Analytics: Shopify Analytics, Klaviyo Analytics (performance tracking)
- Loyalty Program: Custom-built tiered system
- Subscription Management: Shopify Subscriptions (recurring revenue)
9. Conclusion & Key Takeaways
Aura Scentials’ revenue optimization campaign demonstrates that the most valuable growth opportunity often lies within your existing customer base. By shifting from a transactional, discount-driven model to a relationship-focused, personalized approach, we transformed one-time buyers into lifelong brand advocates.
The key insight is that customer retention and lifetime value optimization require more than just better email campaigns—they demand a fundamental shift in how you view and interact with your customers. By understanding their preferences, anticipating their needs, and providing genuine value beyond discounts, brands can create sustainable, profitable growth that compounds over time.
The three-pillar strategy of segmentation, personalization, and loyalty building created a virtuous cycle where each element reinforced the others, leading to measurable improvements in customer lifetime value and overall business profitability.
