How Revamp Boosted Lume's Revenue Per Recipient by 21% with AI-Driven Personalization
AI-powered personalization delivers 7X ROI in highly regulated cannabis market
Revenue Increase
New Incremental Revenue
Return on Investment
“Revamp equipped Lume with new and innovative email marketing capabilities. With Revamp, our retention strategy evolved from broad promotional emails to hyper-relevant, individualized communications. Revamp drove an immediate boost to Lume's email marketing revenue and proved that personalization at scale is achievable even in highly regulated markets like cannabis. The 7X ROI speaks for itself.”
As the largest cannabis retailer in Michigan, Lume has 39 retail locations and a thriving product line. Despite their success, the brand faced a unique challenge: traditional advertising channels are largely restricted in the cannabis space. As a result, customer retention through email and SMS became essential for growth.
However, the existing post-purchase marketing emails were generic, relying on broad promotions instead of genuine personalization. Alex Bonesteel, who heads Acquisition and Retention at Lume, had long envisioned a way to tailor each message specifically to individual users based on their actual buying habits and interests.
After Alex shared these challenges publicly on LinkedIn, Revamp reached out with a proposal: What if Lume's emails and texts felt truly personal, almost like a one-on-one conversation with each customer?
The Problem We Solved
Lume faced unique challenges in the cannabis industry:
- •Traditional advertising channels are largely restricted for cannabis brands.
- •Customer retention through email and SMS became essential for growth.
- •Existing post-purchase marketing emails were generic, relying on broad promotions.
- •The team needed a way to tailor each message specifically to individual users based on their actual buying habits and interests.
With limited marketing options available, Lume needed a smarter approach to connect with customers in a meaningful, personalized way while remaining compliant with industry regulations.
How We Made It Happen
Revamp integrated directly with Lume's Klaviyo account and got to work with three critical post-purchase flows. By using data points like purchase history, product preferences, loyalty information, location, and even local weather conditions, Revamp was able to craft personalized, compliant messages uniquely tailored to each recipient.
The initial tests split traffic evenly, enabling a clear view of Revamp's direct impact on engagement and revenue.
Key elements of the solution included:
- •Deep integration with Klaviyo for seamless deployment
- •Leveraging purchase history and product preferences for personalization
- •Incorporating loyalty information and location data
- •Weather-based messaging triggers
- •Ensuring full compliance with cannabis industry regulations
The Impact
The results quickly spoke for themselves. Within weeks, Lume saw:
- •A 21% increase in revenue per recipient (RPR).
- •Tens of thousands in new incremental revenue directly attributed to Revamp.
- •Over a 7X return on investment, surpassing initial expectations.
Not only did this partnership deliver immediate financial results, but it transformed how Lume approached customer retention moving forward.
After the success of the initial pilot, Lume fully integrated Revamp into their major post-purchase flows. They're also expanding tests into additional campaigns, such as browse abandonment, confident that further personalization will continue to drive strong results.
Even within tightly regulated industries, meaningful personalization can significantly increase customer value, drive measurable revenue growth, and deliver remarkable ROI.
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