When KOS needed to run their first deep-discount campaign to clear inventory, Senior Email Marketing Manager Dejan Georgiev faced a common challenge: creating precise customer segments that would drive sales, liquidate the excess inventory, and not erode full priced sales from active customers.

Traditional segmentation would have required upwards of 4 hours of manual work to create these sophisticated segments - time that could be better spent on strategy and execution.

The Challenge

KOS wanted to target their promotion to preserve brand value while reactivating dormant customers. Specifically, they needed to target two key customer segments:

• At-risk customers who had become inactive

• Previously promotion-responsive customers

They also saw an opportunity to target their list of Low Engagement customers with a strong offer that could re-engage them with the brand.

However, manually creating these segments would have required extensive time analyzing customer data, purchase history, and engagement patterns - resources that weren't readily available.

Further, KOS needed to protect their premium positioning and contribution margin. It was important to only offer this promotion to the customers that needed it, not those with a demonstrated willingness to purchase at full price.

The Solution

Instead of spending hours manually creating segments, Dejan leveraged Raleon's AI-powered segmentation. What would have been a multi-hour project was completed in just 60 seconds. Using Raleon's pre-built intelligent segments, Dejan was able to:

• Instantly identify and target at-risk customers leveraging Raleon’s At Risk Engaged and Winback segments

• Segment promotion-responsive customers using Raleon’s Discount Seekers and Promotion Responsive segments.

• Launch the campaign with precision targeting in just one-click through Raleon’s direct integration to Klaviyo. 

Instead of hours of manual work creating complex segmentation rules, the campaign was ready to go in a few clicks, under 60 seconds.

Results

The campaign delivered impressive results, particularly in terms of revenue efficiency and targeted engagement. When compared to KOS's previous New Year's sale campaign:

• Revenue per recipient nearly doubled for primary emails ($0.11 vs $0.06) and more than quadrupled for follow-up emails ($0.23 vs $0.05) 

• Revenue from the Very Low Engaged segment increased 14%.

• Achieved these results while maintaining KOS's strict contribution margin requirements through precise customer targeting. 

• Completed all segmentation in 60 seconds vs. estimated 5+ hours of manual work

KOS, a premium brand who rarely runs discount promotions, these results generated sales, protected contribution margin, and didn’t cannibalize sales from broader, less discount seeking segments.

Key Takeaways

The success of KOS's campaign demonstrated several key benefits of using Raleon:

1. Dramatic time savings: What would have taken hours was accomplished in seconds

2. More precise targeting: AI-powered segments enabled better customer targeting

3. Improved campaign performance: Better segmentation led to stronger results

4. Resource optimization: Marketing team could focus on strategy rather than data analysis

"I didn't want to waste time creating segments manually. With Raleon, it was just click-click, and we were done. The campaign worked better than our previous promotion, and we saved countless hours of work. It was a complete win-win."

Dejan Georgiev, Senior Email Marketing Manager at KOS

To find out how Raleon can save your team hours, drive sales, and improve margins, schedule a demo today.