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Key Stats
+$1M additional annual revenue generated from retention marketing
89% year-on-year growth in email-driven revenue
56% overall revenue growth during the 6-month partnership period
2X increase in email sign-ups, adding ~7,000 new subscribers per month
The Challenge
Leelo Active is an Australian eight-figure activewear brand operating in one of the most competitive niches in e-commerce. While the brand had already built strong momentum, they were facing the same pressure many scaling brands encounter rising advertising costs and shrinking margins.
Their email channel was already contributing roughly 30–35% of total revenue, which on paper looked healthy. However, the team knew the channel was underperforming relative to its true potential. Their existing agency handled multiple marketing services at once, including paid ads, social media, and email. The result was a retention strategy that was “good enough,” but far from optimized.
The symptoms were clear: declining attributed revenue from email, inconsistent campaign cadence, underperforming automation flows, and a sign-up form that wasn’t fully capitalizing on incoming traffic. At the scale Lelo was operating, even small inefficiencies in customer retention could translate into hundreds of thousands of dollars left on the table.
The brand didn’t just want better emails they needed a structured retention strategy that could increase customer lifetime value, drive repeat purchases, and reduce reliance on rising acquisition costs.
The Strategy
Our approach focused on transforming email from a basic promotional channel into a full retention marketing engine.
We began by rebuilding the entire lifecycle strategy inside Klaviyo. This included implementing high-performing automated flows that guide customers through every stage of their journey, from first visit to repeat purchase. Key flows included a new Welcome Flow, Active On-Site Flow, Abandoned Cart and Checkout sequences, Browse Abandonment reminders, and Post-Purchase Thank-You flows.
Each flow was designed not only to recover lost revenue but also to nurture long-term brand engagement. Instead of relying on static automation, we implemented continuous A/B testing across subject lines, messaging, timing, and segmentation, allowing the system to improve week after week.
On the campaign side, we simplified segmentation and increased sending frequency.
Previously, campaigns were sent sporadically with overly complex targeting. By broadening segmentation and maintaining consistent communication with the full subscriber base, engagement and open rates climbed significantly.
The combination of optimized flows and consistent campaigns created a flywheel: automated sequences captured intent, while campaigns drove awareness, storytelling, and product demand.
The Solution
The first step was diagnosing where revenue was leaking in the customer journey. From there, we implemented three core initiatives.
1. Rebuilding the Email Infrastructure
We rebuilt every major automation flow from scratch and introduced continuous testing across multiple sequences. This dramatically increased conversion rates across welcome, abandoned cart, and post-purchase journeys.
2. Fixing Campaign Strategy
The previous campaign approach relied on infrequent emails with complicated segmentation. We simplified the structure, increased frequency, and focused on delivering engaging content rather than relying purely on promotions.In just four days, three non-promotional campaigns generated nearly as much revenue as the previous agency’s entire month of promotional sends, demonstrating the power of better targeting and consistent engagement.
3. Humanizing the Brand Through Storytelling
Another key shift was introducing the founders more directly into the brand narrative. Authentic founder stories, updates, and behind-the-scenes content helped create a deeper emotional connection with customers.
People don’t just buy products, they buy stories and identities. By leaning into authenticity and community, Leelo Active strengthened its brand loyalty while maintaining consistent engagement throughout the year.
The Outcome
Within six months, the results were transformative.
Email-driven revenue increased 89% year-on-year, making retention one of the fastest-growing channels in the business. Overall company revenue grew 56% year-on-year, with email and SMS playing a major role in that growth.
Automation flows became the dominant driver of email performance, increasing their contribution from 61% of revenue to 74%. At the same time, campaign performance improved significantly due to better segmentation and consistent sending.
Perhaps most importantly, the brand was able to grow despite difficult economic conditions and a broader cost-of-living crisis affecting consumer spending.
By strengthening retention, Leelo Active reduced dependence on rising advertising costs, increased customer lifetime value, and created a more predictable and scalable revenue engine.
