Using KPIs to move declining performance into growth

VIP Vaping became popular for providing vaping products in the UK and marketed itself as catering to a premium, "VIP" experience for smokers looking to transition to e-cigarettes.

However, VIP Vaping faced significant issues in the past. In 2017, the company entered into financial trouble and eventually went into administration. Reports indicated that despite its initial popularity, the company struggled to maintain profitability, leading to the closure of its physical stores and a significant reduction in operations. The company was purchased by British Americcan Tobacco who tramsitioned it to their VYPE brand.

challenge

In the ever-changing landscape of digital marketing, measuring the effectiveness of email marketing campaigns was a complex task. The abundance of available metrics made it difficult to identify the most relevant ones that would truly impact performance. For businesses, particularly in e-commerce, there was a need for a simplified, data-driven approach to improve customer engagement, boost sales, and retain customers.

action

To tackle this challenge, the focus was placed on identifying and implementing seven essential email marketing KPIs to help businesses measure and optimize their campaigns. By aligning these KPIs with organizational goals, businesses could foster accountability and support data-driven decisions. A simplified KPI model was applied to one business over 18 months, focusing on core areas like new customer acquisition, second-order purchases, customer retention, and improving email targeting. Key strategies included enhancing SEO to boost non-brand traffic, defining customer segments, and offering personalized, relevant marketing to customers at various stages of the lifecycle.

impact

The application of this simplified KPI model led to impressive improvements across multiple metrics: New Customers increased from -43% to +32% YOY, primarily driven by better SEO and non-brand term rankings. Second Orders grew by +19% YOY through tailored marketing strategies for first-time buyers. The At Risk customer segment saw a significant decrease from -6% to -30%, as targeted offers prevented customers from becoming at risk. Lapsed Customers also improved, dropping from -6% to -30%, with better-targeted offers keeping customers engaged. Won Back Customers increased dramatically from +46% to +153%, thanks to more personalized marketing efforts based on additional customer data points. These improvements contributed to the overall growth of the business and demonstrated the power of using the right KPIs to drive data-driven success in email marketing.

07592629885