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Madison Reed Increases Subscription Rate by 45% With Iterable

With Madison Reed’s online subscription service, consumers can achieve salon-quality hair coloring at home—conveniently, confidently and economically.

In addition to aggressively growing its online business, this relatively young company is opening physical locations called Color Bars to give customers the option of obtaining hair-coloring products and services in person.

Until 2016, however, the marketing team at Madison Reed didn’t have an effective way to create highly personalized, cross-channel interactions that help build long-term customer relationships.

To make those interactions possible, the business replaced its cumbersome and limited marketing solution with Iterable.

Iterable’s flexible data model, modern APIs and universal webhooks saved engineering time by simplifying integrations with other platforms, such as Segment for customer data and Lob for direct mail.

Its ability to track online and offline interactions provides a 360-degree view of each customer, sharpening personalization and relevance.

Quote by Julia  Papane, Email Marketing Specialist at Madison Reed

Cross-Channel Reactivation Campaigns Reduce Early Drop-Off

Madison Reed’s marketers have leveraged Iterable to create a reactivation campaign that is reducing customer drop-off after the first purchase. Because their hair color survey asks how often customers color their hair, the marketing team can determine expected reorder dates.

The campaign uses that information to generate lists of people who didn’t reorder at the expected times and put their names in the reactivation workflow.

Multivariate testing and performance optimization showed that the addition of direct mail to this workflow yielded an incremental 3% lift in upgrades.

Through testing, we found that the best reactivation sequence is an email message followed by a direct mail postcard, which is then followed by another message […] That’s key in a business where highly personalized timing is everything,” said Julia Papane, Email Marketing Specialist at Madison Reed. “We’ve put an SMS webhook in the workflow so that customers who have opted into SMS receive an SMS nudge if they don’t engage with the email messages or postcard.”

Iterable’s Impact at Madison Reed

  • The upgrade-to-subscription conversion rate for Iterable campaigns is 45% higher than that of a control group
  • Adding direct mail to their reactivation workflow drove an incremental 3% lift in upgrades
  • Easy integration with other platforms like Segment saves hours of engineering time
  • Automated campaigns triggered by individualized customer behavior are increasing reorders and revenue

Download the Madison Reed case study to learn how the company is using a full range of customer interactions to build lasting relationships.

Want to learn how your business can become a marketing success story?

Contact us to learn how you can deliver world-class customer engagement at scale with the Iterable Growth Marketing Platform.

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