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How Hyper-Segmentation Grew Adagio Teas’ Email Revenue 1,854%

Email marketing is an indispensable part of any ecommerce marketing strategy today. Whether an online shop is trying to increase sales, acquire more customers, or generate qualified leads, odds are good that email marketing is one of the first tactics they turn to.

However, with today’s customers wanting personalized shopping experiences, the typical email service provider (ESP) of yore might not have enough power to make the most of email marketing. This was the case for Adagio Teas Chile

Adagio Teas Chile realized the potential behind email marketing, but their current ESP wasn’t empowering them to grow like they had hoped. With the help of Springs Digital, a full-service digital agency out of Santiago, Chile, Adagio Teas was able to swap out their ESP for Drip Ecommerce CRM—and see massive email revenue growth as a result.  

With a comprehensive and carefully segmented campaign, Adagio Teas was able to address the needs of customers while encouraging better relationships. Check out how Springs Digital used an ECRM to hyper-segment customers to deliver truly relevant emails at the right time for an optimized email marketing strategy. 

Meet Adagio Teas: A Family Affair

Adagio Teas Chile is the local franchise of Adagio Teas, a specialty retailer that promises to bring quality tea to people everywhere by offering a wide range of more than 100 pure and flavored varieties. Brothers Michael and Ilya grew up drinking their mom’s own homemade blends of Indian and Chinese teas—a passion of hers that they wanted to share with the world.

Musically, the word “adagio” means “slow” or “at ease,” and it was chosen for the company as it perfectly represents how a great cup of tea helps people slow down, unwind, and relax. Together, Michael and Ilya helped build their mother’s vision of uniting the highest-quality tea with people everywhere. 

In addition to selling a massive variety of tea from China, India, Egypt, and beyond, Adagio Teas offers everything a tea-lover would ever need to create the perfect texture, aroma, and flavor for their next cup of tea.

 

Discovering Untapped Potential in Email Marketing

There’s a lot of competition in the online tea-selling space. Not only are there many specialty shops like Adagio, but there’s a lot of competition for lower-quality big-box brands. Fighting for space in the inbox can be a challenge, but differentiating yourself from the competition can be even tougher. 

Despite all this, Adagio Teas Chile was doing relatively well. Thanks to consistent management and optimization of organic actions, digital campaigns, subscriptions, social media, and the rest of their marketing channels, the brand was gaining traction. 

When Adagio Teas Chile teamed with Springs Digital, they already had a five-digit number of people subscribed to their emails. The website was seeing steady traffic of daily visitors (numbering into the four-digits), and their following on Instagram and Facebook had ballooned beyond 170,000 followers.

Despite some impressive numbers like these, there was still a lot of opportunity left on the table. During Cyber Days—the Chilean version of Black Friday / Cyber Monday in the U.S.—Adagio Teas’ website would saw more than half of the monthly visitors per day. Weeks in advance, ideas started soaring about how to reach out and engage with this flood of people interested in their tea—customers or not. 

They recognized the potential that personalized cart abandonment and re-engagement campaigns could have, especially during big ecommerce-focused events like Cyber Days. Not only could a better strategy bring in more sales, but it would also bring a better experience to each of their customers.

Adagio Teas Chile set a goal: Drive more sales through highly targeted email marketing campaigns focused on previous clients and abandoned carts.

Saying “Goodbye!” to an ESP

Adagio Teas Chile wanted to intensify their digital efforts in order to connect more closely with customers and prospects who visit their site. Through better experiences and stronger relationships, Adagio set a goal to drive more sales and customer loyalty. They knew they could achieve these aspirations through email marketing, but their ESP was holding them back.  

In their first attempt to reach and engage with customers through email, a generic campaign was sent to their newsletter subscribers using Mailchimp. Now, Mailchimp is one of the preferred email tools for ecommerce stores in Chile, so this seemed like the obvious solution. 

A large-scale email campaign was deployed, and the results rolled in. The campaign contributed 1% of the total sales volume.

Adagio Switches to ECRM and a Hyper-segmented Approach 

Knowing that email marketing had so much more potential, Springs Digital helped Adagio graduate from an ESP to an ECRM. Drip ECRM pulls information from all your marketing channels to build a comprehensive consumer profile. It was the ideal solution to empower Adagio to create personalized experiences for each customer.

Springs Digital wanted to try a new strategy with Adagio Teas: hyper-segmented email marketing. In order to achieve a greater and more successful return, they knew that Adagio Teas had to start speaking to customers (or potential customers) on a more personal level. Instead of sending every one of their subscribers the same email, Springs Digital crafted a more fine-tuned approach.

Instead of a batch-and-blast strategy, Springs Digital wanted to use Drip to segment people by their real-life behaviors. They filtered Adagio’s entire list and identified customers who had abandoned their carts as well as customers who visited their site during Cyber Days but didn’t make a purchase. 

They cherry-picked these groups of people, then created personalized content that was relevant to each one. This segmented and personalized email marketing campaign had some pretty different results than the generic campaign:

  • Contributed 8% of the total sales volume

  • Audience size: 78.83% smaller 

  • Revenue per email delivered: 1,854.55% greater  

Despite sending emails to a group nearly one-fifth the size of the first, these emails contributed 7% more total sales. The difference? These emails went to interested people and delivered the most compelling and meaningful message possible. The relevancy of these emails and how they related to each person’s recent actions had massive impact.

Adagio Teas Adopts Ecommerce CRM for the Long Run

Adagio Teas Chile reaped great improvement in their business KPIs by sending highly segmented emails to a smaller but more data-enriched audience. These emails were stuffed with creative and attractive personalized content that, in the end, unlocked great interactions and obtained 7X more sales.

 

Adagio Teas Chile and the essence of a personalized email just emphasizes the strong bond between the brand and their customers. As the Chilean retailer continues to work with Springs Digital, one thing is for sure: Clever segmentation and personalized emails aren’t going anywhere any time soon.

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