2xist sees 56.1x platform ROI in first quarter with Klaviyo CDP

2xist (pronounced “to exist”) has been a leading name in men’s underwear for more than 30 years. The brand sells an array of different styles, plus swimwear, loungewear, and tees. Currently owned by The Moret Group, the same retail group that also manages Disney and Jockey brands, 2xist uses Klaviyo to manage relationships with their email and SMS subscribers.

Learn how Klaviyo CDP helped 2xist discount and advertise more efficiently

Challenge

“Men typically don’t buy underwear unless you remind them,” says Christopher Peek, digital marketing director at The Moret Group.

But repeat purchases have better margins than first-time purchases, due to lower customer acquisition costs.

So for years, 2xist wanted to boost repeat purchases “without constantly being on sale to everyone all the time,” Peek says. They envisioned targeted promotions for their least-engaged recency, frequency and monetary value-based (RFM) segments—but it was hard to execute.

Once, 2xist tried building their own CDP in-house to analyze and segment their audience. But it didn’t integrate with the platforms they used to deliver marketing messages or ads, which meant nothing was automated or easy to manipulate.

The team had to manually pull and refresh each RFM segment, and run analysis in Excel—their CDP didn’t have any pre-built performance dashboards.

In the end, it was too much work. They still wanted an RFM-based discounting strategy for email subscribers—but first, they needed a lower-lift way to execute it.

Solution

When 2xist first heard about Klaviyo CDP in the first days of 2024, their ears perked up.

The RFM segments updated automatically, without any manual exporting or refreshing, and getting started was easy.

“Klaviyo CDP is plug and play,” Peek says. “I’m not wasting hours and hours trying to get a developer team to set everything up.”

Klaviyo CDP is plug and play. I’m not wasting hours and hours trying to get a developer team to set everything up.

Klaviyo CDP also had built-in dashboards with intuitive data visualizations, like a Sankey diagram showing how many people had moved between RFM segments over a period of time, and product analysis highlighting the SKUs most frequently bought together.

Peek’s colleagues were impressed by the pricing, given all the functionality, too. In the end, Klaviyo’s was the only CDP the team considered.

Strategy

With Klaviyo CDP set up, 2xist launched the RFM-based promotion strategy they had always dreamed about. They’re currently testing out:

• RFM-based flows: When a customer enters the 3 RFM segments most likely to churn—“needs attention,” “at risk,” and “inactive”—it triggers a segment-specific retention flow with a personalized discount. (The creative highlights SKUs frequently bought with what the customer already purchased, based on CDP product analysis.) These flows drove $15.2K in incremental revenue in 2xist’s first paid quarter with Klaviyo CDP.
• RFM-based Meta audiences: Using Klaviyo’s Facebook integration, “we’ve fully structured our remarketing campaigns in Meta around RFM segments,” Peek says—and ROAS has jumped 61% YoY. Previously, 2xist targeted all subscribers with a standard remarketing message; with today’s more targeted approach, 2xist spends less on ads for champions and loyalists likely to buy on their own.
• Direct mail to “needs attention” RFM segment: 2xist sent direct mail to more than 6k members of their “needs attention” segment who had opted out of email, aiming to reactivate them as customers with a targeted promotion. The campaign earned a ROAS of 3.4x.

Peek sees CDP-powered marketing kicking into even higher gear during peak discount season: BFCM.

Already, it’s helped 2xist boost repeat purchasing, use their email discount codes and ad dollars more efficiently, and understand their customers’ behavior better.

“The fact that we can have email, SMS, and CDP all under one hood with Klaviyo helps with aligning data, pulling reports—everything,” says Peek. “I’m not pulling 3 different reports from 3 different platforms and trying to connect the dots. I love being able to go in and see how each message performed with each RFM segment.”

The fact that we can have email, SMS, and CDP all under one hood with Klaviyo helps with aligning data, pulling reports—everything. I’m not pulling 3 different reports from 3 different platforms and trying to connect the dots. I love being able to go in and see how each message performed with each RFM segment.