Ecommerce Consultant and Growth Strategist for small businesses
07592 629885 | Dominic Smith - Ecommerce Consultant
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.
Email marketing remains one of the most effective tools for engaging customers, nurturing leads, and driving revenue, particularly in the fast-paced eCommerce industry. However, many businesses struggle to harness its full potential due to the overwhelming volume of metrics and data involved.
Defining and tracking the right Key Performance Indicators (KPIs) can make all the difference. KPIs not only provide a structured way to measure success but also serve as a foundation for broader strategies like Lifetime Value (LTV) modeling and customer retention planning. Most importantly, they ensure alignment with organizational goals and drive data-backed decision-making.
A KPI-Driven Turnaround: The Power of Simplicity
Over the years, I’ve worked with businesses facing a wide range of challenges. My philosophy is simple: keep KPIs straightforward and actionable, allowing teams to focus on specific tactics to address key issues. One particular case demonstrates just how impactful this approach can be.
BAT approached me approached me shortly after acquiring VIP Vaping. They were experiencing significant declines across multiple metrics and were on the brink of collapse. By partnering with the new owners and applying a clear, targeted KPI framework, we completely transformed their email marketing performance—and ultimately, their business trajectory.
Over 18 months, we focused on improving core KPIs, resulting in remarkable growth and putting the business back into "growth mode." Below is a breakdown of the results:
I worked with the new owners to implement a clear, simplified KPI framework tailored to their challenges. Key actions included: Improving SEO to drive new customer acquisition. Segmenting customers based on purchase behavior to increase repeat purchases. Developing targeted campaigns to address churn and re-engage lapsed customers. Collecting more data points to enhance personalization and relevance in marketing efforts.
Key KPI Improvements
New Customers
Before: -43% year-over-year (YOY)
After: +32% YOY
What Changed: We prioritized SEO and significantly improved rankings for non-branded search terms. This increased visibility, driving more first-time buyers into the sales funnel.
Second Orders
Before: Flat YOY growth
After: +19% YOY
What Changed: We created well-defined customer segments based on entry-level products. By tailoring follow-up marketing strategies to match first-purchase behaviour, we encouraged repeat purchases.
At-Risk Customers
Before: -6% retention rate
After: -30% reduction in at-risk customers
What Changed: By identifying early warning signs of churn, we delivered more relevant offers and personalized communications before customers reached the "at-risk" stage.
Lapsed Customers
Before: -6% re-engagement rate
After: -30% improvement in preventing lapses
What Changed: The same data-driven approach used for "at-risk" customers helped us proactively address potential churn, keeping more customers engaged.
Won-Back Customers
Before: +46% YOY growth
After: +153% YOY growth
What Changed: We leveraged more data points to improve segmentation and relevance in win-back campaigns. By personalizing outreach and offers, we reactivated a significant portion of the customer base.
The Broader Impact
This transformation was a testament to the power of email marketing when guided by actionable KPIs. The simplicity of the framework allowed the entire team to focus on driving measurable improvements at every stage of the customer lifecycle.
By emphasizing relevant offers, tailored communication, and data-driven strategies, we not only improved email performance metrics but also restored confidence in the business’s long-term growth potential.
Conclusion
The right KPIs can turn a failing email marketing program into a key driver of business success. By focusing on measurable goals and leveraging customer data effectively, businesses can nurture stronger relationships, improve retention, and achieve sustainable growth.
This case is just one example of how thoughtful, targeted strategies can unlock the true potential of email marketing—transforming it from a challenge into a cornerstone of success.
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