Engagement & Retention project | The Souled Store

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Engagement & Retention project | The Souled Store

The Souled Store

Putting the Pop in Pop Culture!

The Souled Store is an Indian casual wear brand specializing in pop culture-inspired merchandise, appealing to millennials and GenZ fans of movies, TV shows, Comics, and Sports. It offers unique and trendy designs on apparel and accessories across various product categories, including T-shirts, Joggers, hoodies, backpacks, and more.

The brand has positioned a strong visual identity with its iconic, adorable 'Soul' mascot that has become central to the brand. They have both online (web and app) and offline presence with more stores expanding every year.

TSS crossed a revenue milestone of over ₹100 crore in FY 2021-2022 ( ₹235 Cr in 2023) with a large and loyal customer base of 6 million!

TSS's customer acquisition cost (CAC) is Rs. 100, < 1/10th of the average CAC for e-commerce in India

Core Value Proposition

TSS's CVP lies in offering unique, high-quality, affordable, and officially licensed pop-culture merchandise from fans' favorite franchises combining quirky designs with superior comfort.

The Brand has become the go-to destination for a community of pop-culture enthusiasts who love self-expression through what they wear.

How do users currently experience their core value prop?

Some of the brand's unique offerings include:

Exclusive Licensed Merchandise: They have partnered with some of the most popular franchises of Marvel, DC, Cartoons & Comics, and Sports leagues to ensure the offerings are authentic and exclusive to them. (50+ Fandom Character Prints!)
High-quality fabric with superior comfort: Being a casual user, can vouch for their amazing fabric quality that is best suited for everyday wear. (Versatile fabric)
Affordable and Accessible: The price and membership is at an affordable range without compromising on quality attracting a large customer base.
Unique and Trendy Designs: Their design collection is quirky, fun, and in sync with the latest trends (TV shows or movie releases) that stand out in the market. (15+ categories)
TSS Membership: Building a loyal returning customer base by offering exclusive perks like early access, free shipping and discounts with their membership. (50% of brand's revenue comes from their membership programme!)
Offline and Online Presence: The brand has established a strong offline presence which in turn will be leveraged for quick-commerce delivery! (Source)

What's the Natural Frequency?

The natural frequency varies with the casual, core, and power users of the app.

Type of User	Natural Frequency
Casual	1-2 orders a year
Core	3-5 orders a year
Power	> 6 orders a year

Ideal Engagement Framework

For e-commerce platforms, generally all Breadth, Depth and Frequency of engagement matters. But particularly for Souled Store, the most ideal engagement metric to track would be Frequency.

Why Frequency?

Pop-culture trends evolve fairly quickly and to be in line with it, Souled store has to focus on releasing new merchandises quite frequently to keep their users engaged, or else the collection become outdated.
So, if a user comes back frequently to explore latest collabs, new drops and limited edition collections, it signifies they have already realized the core value prop of the product and are fairly engaged with it!
If they engage frequently, they are most likely to buy the Membership to reduce overall costs and get the Perks!

Then how do we stay relevant in such fast-paced trend shifts!?

They have curated a basic everyday wear collection offering trendy design and comfort.
Apart from the licensed merchandise drops, Souled store has also curated their own quirky, funky, everyday collection (✨ TSS Originals ✨) which aligns with their brand image appealing to GenZs and millennials, across a breadth of products - Sneakers, Shirts, Basics, Hoodies, Dresses etc. so that users also stay engaged with other products!

✅ What makes a user Active for us?

We have 2 types of users here - with and without membership

Without Membership

The core action to be considered a user active would be completing a purchase (and by completion we mean without availing the 1 month return policy). So we can define our active user as someone who has completed 1 purchase in the last 3 months with us.

The 3 month time frame is derived from user interviews and research suggesting many customers tend to make 3-6 purchases a year from fashion e-commerce apps.

With Membership

The core action is buying the membership to avail discounts and perks. So an active user will be someone who would renew their membership post expiry.

Some metrics to track for active, engaged users:

# users who purchase the limited edition collections
# users who ordered from the TSS Originals collection
# users who avail the Souled store credits to buy
# users who visit the app to check collections or add items to wishlist
# users who have bought/renewed the membership (Power!)
# users who add items to cart
# users who have saved their address and payment details

Our Ideal Customer Profiles

	ICP 1- Casual 🧘🏻‍♀️	ICP 2 - Core 🧍🏻‍♀️	ICP 3 - Power 🤸🏻
Name	Hritvik Patel	Swaranshi Kaushik	Anurag Verma
Age	24	25	26
Gender	Male	Female	Male
City	Bangalore	Bhopal	Bangalore
Marital status	Single	Single	Single
Occupation	Software Engineer	Doctor (MBBS)	Engineer
Income level	30-50 LPA	10 - 20 LPA	40 - 60 LPA
Behavioral
Time spent on weekends	music jams, sports, board games with friends	going to cafes, shopping, movies with friends, netflix & chill	Exploring restaurants, shopping, going on dates, clubbing with friends
Money spent on	rent, food, groceries, OTT and music apps	food, OTT, shopping, courses	food, shopping, travel, OTT, rent
Apps where they spend time	Instagram, YT, Whatsapp, Hinge, Spotify, Netflix, Cred	Instagram, Snapchat, Myntra, Nykaa, YT, Whatsapp, Spotify	Instagram, X, Reddit, Whatsapp, YT Music, Zerodha
Favorite TV Shows/movies	Batman, Suits	Modern family, crazy rich asians, crazy stupid love	Dark, attack on titans, naruto
Tech Savvy Level	High	High	High
Money/time	Time	Money	Time
Shopping Patterns
How often do they shop for clothes	5-6 times a year	Once in 2 months	Once or twice a month
What factors do you consider most while buying clothes	Size, fit and Comfort	Fashion trend, design, quality	Quality, fit, style
What apps do you use to shop for clothes	Myntra, Souled Store, Bewakoof, H&m	Myntra, Ajio, Urbanic	Myntra, Snitch, Bewakoof, H&m, Zara
Why do you use these apps?	Home delivery and exchange option search for specific items and find styles	Wide variety of options Trendy, good quality clothes Personalized contents and age specific collections	Reliability and trust speedy delivery variety
TSS Engagement
How did you hear about TSS	Saw an offline store	Word of mouth	Instagram Ad
How long have you known about TSS	3 months	2 years	3 years
How do you shop from TSS	offline store	Website/App	Website/App/Offline
What items do you shop from TSS	T-shirt	T-shirt, bottoms, dresses	Sneakers, T-shirt, bottoms
Why do you shop from TSS over other brands	Dont shop often from TSS, but has funky and goofy designs. Buys only fan clothing (football and comics)	Their unique collection and decent price along with good quality and comfort	Their exclusive anime collection Their basic everyday collection of good quality Their attractive and affordable sneakers
AOV	500-1000	1000-3000	>3000
Do you have TSS Membership	No	Yes	Yes
Why did you buy the Membership?	NA	The discount after adding the membership was more than the cost of the membership	Free shipping, birthday discount and overall lower prices for members
Would you refer TSS	Maybe	Yes	Yes
TSS Retention
What do they least value about TSS	Limited collection that can't be used for everyday use	Unavailability of sizes, out of stock items	online and offline store integration is not great (offline doesn't have return option and proper SKU identification)
Have you renewed your membership	NA	No	Yes
JTBD of TSS	To buy good quality fandom clothing of my interests for once in a while use	To be the go-to place for pop merchandises and also shop for unique trendy designs at decent price	A place to buy clothes that reflects my identity and goes well with my vibe, while also being comfortable

Some core insights:

Their merchandise collection is their USP, combined with good quality and comfort. The casual and core users will be quick to shift to other platforms if they find a similar collection.

The brand's vibrant colors and design does not appeal much to the casual users, they would only buy it for very occasional wear. Quite a lot of them discovered the brand through their offline store which TSS ventured in quite recently.

Customer Segmentation data from SimilarWeb

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Core/Casual/Power Users

	Casual	Core	Power
Natural Frequency	Low	High	High
LTV (AOV * freq/month * lifespan)	5000.53 = ₹ 750	15000.86 = ₹ 7200	3000112 = ₹ 36000
Top features	Limited collection for specific occasions	Good quality combined with trendy designs	Merch collection Membership perks
Top channels	Offline	Website/App	All
Top products	T-shirts	T-shirt, bottoms	T-shirt, sneakers, hoodies
Price Sensitivity	Low	High	High
Top Competitors	Myntra, H&m, Zara	Myntra, Urbanic, H&m, Bonkers corner	Myntra, Bewakoof, Snitch

Best Engagement Frameworks 🏆

Engagement Framework	Relevance	Key Tracking Metric	Reasoning
Frequency	Primary	# times a user makes a purchase # times user opens the app and adds item to wishlist # offline store visits and purchases per month	TV show and movie trends evolve quickly, frequent purchases reflects collection is aligned with evolving trend opening app to explore latest collection and adding to wishlist indicates user's intent to buy and stay updated
Breath	Secondary	# of product categories shopped # products shopped from TSS originals # of themes/collections browsed or purchased from	Different categories indicate TSS is catering to a spectrum of users from basic to funky wear and casual to formal to party wear Understand which collections/themes are the most popular and which ones don't drive much engagement
Depth	Secondary	AOV # of complementary products bought together Diversity of products bought time spent on app and in store # addressed and payment method saved	High AOV and diverse products means users are willing to spend for quality and are interested in the design offerings of the brand High time spent exploring the store indicates users are curious about the designs and like the in-store experience of trying before buying

Engagement Campaigns 🎺

Tiered loyalty Membership

Campaign Name	Unlock the SoulVerse: Level up your Membership
Hypothesis	TSS has a single tier membership which is affordably priced but it has lost its exclusivity for power users because a lot of core users also have the membership to avail discounts. Introducing a tiered membership with different perks would engage users in the long run and give them a sense of leveling up in the community.
Channel of Distribution	The campaign introduction can be - in app and web, Instagram post, email and push notifications. For offline stores - store representative can introduce them to the membership program
Persona/Type of User	Power Users
Target feature	Frequency of engagement, building brand loyalty
Pitch and Content	In app banner - ✨ JOIN THE SOULVERSE ✨ Welcome to the SoulVerse - an exclusive universe for our members to unlock fandom, perks and rewards. The Souled Store is bringing you an exciting new membership program designed to take your experience to the next level. Journey through the levels to become the elite ✨ Legendary Souls ✨ and unlock a chance to meet your favorite Superheros! (We ain't kidding) Are you ready to level Up? (Tap to join today)
Goal of the campaign	To engage the power users more and create a sense of community and exclusivity for them Convert core to power users (they will renew their memberships to start leveling up and get the perks)
Details	The membership will be across 4 tiers - The Crew, Soulster, Super fan, and Legendary Soul The level of the member will be decided based on the platform currency which is the amount of TSS points. (certain TSS points are availed on each purchase, so users will have to keep shopping to collect these points) A special offer like a discount can be given on reaching a new level Other ways to collect the TSS points can be introduced such as writing product reviews, posting with TSS hashtag on Instagram to drive online and in app engagement
Offer	Each level will have its own set of perks (with a grand perk of invite only events, (Campaign 2) ) which are outlined in the table below. Leveling up to get more offers will gamify the experience for the customers while giving them sense of exclusivity
Frequency and Timing	The campaign will announced on Instagram using a series of posts to build the hype - Pre, during and post launch The in-app and web banner will be introduced after the post for about a month on the app (power users would visit the app at least once in this timeframe) An email communication with the campaign introduction will be sent out to the power users for early access before the launch, and to all the users after the launch.
Success Metrics	No. of users who sign up for early access Increase in engagement with social media posts No. of users who click the Join now button from the app Increase in sales and AOV during the campaign No. of new memberships bought during the campaign No. of users who start collecting TSS points to level up Tier advancement - how many users advance from one level to other and in what time
Milestones for the campaign	Achieve 20-30% increase in email sign-ups signaling strong pre-launch interest. Target 15-20% of existing customer base signing up within the first 48 hours of launch. Increase in web and app traffic by 30-40% during first week. Target a 5x ROI from the campaign, considering promotional costs versus revenue generated by members.

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Exclusive Invite-Only Event/Meetup

Campaign Name	"The Legends' Lounge" – A VIP, invite-only experience for the ultimate Souled Store fans
Hypothesis	Introducing an invite only event will make the power users stick to the brand, meet each other, meet influencers and their favorite characters. More users including core will strive to get these perks by leveling up their membership.
Channel of Distribution	Email and Instagram Post, Push notifications
Persona/Type of User	Power Users/ Core Users
Target feature	Frequency, building brand loyalty, community engagement
Pitch and Content	Social media post - ✨ The Legends' Lounge is calling ✨ Want in? This is your exclusive chance to join the most epic fan event of the year! Meet fellow legends (and influencers), enjoy VIP perks, and get exclusive product drops. Only available for Soulester, Superfan, and Legendary Soul members—RSVP now to unlock your spot! (Limited spots) #Soulverse #LegendsLounge #SouledStoreVIP #UltimateFandomExperience Push Notification - Just a few spots left for the most exciting fandom event! Have you booked yours yet?
Goal of the campaign	To build community engagement amongst the power users and give them a sense of exclusivity Convert core to power users (they will renew their memberships to start leveling up and get the perks)
Details	Can organize a special event with influencers, design team behind TSS's designs, and if budget allows - a meet and greet with some popular fandom characters Will be invite only via email and sign ups from Instagram post and app Limited Spots
Offer	Behind the scenes of TSS designs, exclusive merch drops in the event, meetup with celebrities and influencers
Frequency and Timing	The campaign can start off as a one-time event, and the frequency of organizing can be decided based on the event feedback. The push notifications will be sent one week, 3 days and 1 day before the final event.
Success Metrics	No. of users from each tier who RSVP for the event Increase in social media engagement after the launch of the post Members leveling up to high tiers after the event due to increased brand loyalty
Milestones for the campaign	Target 40-50% RSVPs through emails Achieve 80-90% attendance of invitees, especially those in higher membership tiers. Increase in sales post the event

Limited Basics Edition Drop

Campaign Name	Limited Basic Edition Drops - Just for you
Hypothesis	The funky designs don't appeal much to casual users who prefer basic wear with good quality and comfort. Dropping a limited edition different than the usual collections will drive urgency for purchase
Channel of Distribution	In app and web, email and push notifications
Persona/Type of User	Casual Users
Target feature	Breadth of engagement
Pitch and Content	Email Content: Subject - We heard you {Name} - Here's a Limited Basics Edition - Just for you! 💫 Body Hey {Name}, We heard you! At Souled store, we value comfort over show. So we brought you something a little different: a limited-edition collection that’s all about the essentials—basic, timeless designs perfect for everyday wardrobe so you can be comfortably you. ✨ We are sure you'll love it, here's why: Superb Quality Versatile Styles Additional Discount on purchase of 2 or more items! Remember! This collection won’t last forever. Secure your favorites before they’re gone! 👉 [Shop Now] – Don’t miss out on these unique designs! Thank you for being part of The Souled Store family. We can’t wait to see how you make these basics your own. Warm Regards, The Souled Store Team
Goal of the campaign	To drive casual users to make purchase on TSS and possibly convert to core users
Details	Launch a limited edition collection of just the basic color and styles across various product range
Offer	Additional discount of Rs. 300 on purchase of 2 or more items Extra discount of 300 on the first purchase
Frequency and Timing	One time launch, can add to catalogue if response is positive Email to be sent on Saturday 12 PM introducing the launch and Sunday 12 PM for the launch 2- 3 Push notification to be sent from Sat 12 PM till the collection remains in frequent non bothering intervals
Success Metrics	No. of users clicking the shop now button Speed of stock completion and demand No. of users availing the extra discounts by making higher SKU purchases
Milestones for the campaign	Completion of stock 3 days within the launch Increase in first time purchases and sign ups

Wishlist bula rahi hai

Campaign Name	Shower of Discounts
Hypothesis	Nudging the core users to convert their saved wishlist into purchase
Channel of Distribution	email and push notifications
Persona/Type of User	Casual/Core Users
Pitch and Content	"Your Wishlist is calling... and it's tired of waiting! 😏💸" "Your Wishlist item is about to go Out of Stock!" The items you love are still here, waiting for you to make them yours. 🛍️ Use code SOUL10 and get 10% OFF — because why wait when you can slay now? 🔥 Tap to shop before someone else snatches them up!
Goal of the campaign	To drive core/casual users to convert their wishlist items to purchases
Details	Give additional discounts and coupons
Offer	10% off on wishlist item
Frequency and Timing	after a few days of adding to wishlist during sale or limited time discounts
Success Metrics	No. of users clicking the shop now button Coupon redemption rate

Shower of Discounts

Campaign Name	Shower of Discounts
Hypothesis	Nudging the core users who have once experienced the CVP before with offers, discounts would help in making more purchases
Channel of Distribution	email and push notifications
Persona/Type of User	Casual/Core Users
Pitch and Content	“Psst... Wanna look cooler without burning a hole in your wallet? 🔥🤑” We’ve got 20% OFF on your favorite styles. 😎 Don't wait — your dream wardrobe is just a tap away! 🛍️ Use code: SOUL20 at checkout ⏳ Hurry, the offer won’t last forever!
Goal of the campaign	To drive casual users to make purchase on TSS and possibly convert to core users
Details	Launch discounts and coupons
Offer	20% off on some styles
Frequency and Timing	2- 3 Push notification to be sent on Sat and Sun between 12 - 3 PM and 6 - 8 PM
Success Metrics	No. of users clicking the shop now button Coupon redemption rate

Retention Rates

The average retention rate for D2C e-commerce brands is around 28-30% (source)

According to Inc42, The Souled Store has a repeat rate of 130% per year and a one-digit return rate. The Souled Store's co-founder and CEO, Vedang Patel, says that the brand's repeat rate is competitive with industry standards. (source)

The retention rate varies across product categories, narrowing down to ~26% for apparel. Given TSS's repeat rate is competitive with industry standards, we will assume the same 26% flattening of the retention rate.

Which ICPs drive the best retention?

ICP 2 and 3, our core and power users, contribute to the highest repeat purchase and thus drive the most retention. They are majorly GenZs and millennials who are fans of pop culture and engage with the app frequently to explore and purchase new releases.

What acquisition channels drive users to retain better?

Word of Mouth/Organic search: Based on our user research, many users come to know about TSS via word of mouth from their friends. They would then go on to search and land directly on the web and app. The WOM also builds trust for the brand, driving retention
Offline Stores: Allows the user to judge the quality, fit, size and design of the fabric before buying helps strengthen the initial trust, keeping them retained for further purchase.

What sub-features or sub-products drive the best retention?

Frequent Collection Launches - of the latest trending TV show/movie or sports season, summer/winter collection, concert/office collection keeps the users hooked
Souled Store Membership - Users who have the subscription shop frequently to make the best use of it, retain for birthday discounts and offers.
TSS Points - They come with expiry and drive retention by nudging users to make an urgent purchase decision to avail them before expiry.

Reasons for Customer Churn

(The following reasons have been derived from user reviews and customer reviews on app store)

Voluntary Churn	Involuntary Churn
Do not like the collection anymore	Unavailability of sizes / out of stock items
Lack of options/new releases	Delivery/Payment failures
Better alternative brands	Unserviceable location
High sensitivity to increased prices	Technical glitches with app
Poor fitting/packaging issues
Slow/unreliable shipping
charging convenience on returns
Product color different than app image
refunded money only credited as TSS points
Delay in deliveries

Negative Actions to look for Churn

Cart Abandons - User has added an item to cart but has not completed the purchase, indicating loss of buying interest or any involuntary reason like payment failure.
App uninstall - If the no. of app uninstall rise, it is a negative signal for app glitches, bad PR or people switching to other brands.
Muting Push notifications/Unsubscribing emails- indicates user is no longer willing to know about discounts and latest collections.
Increase in support tickets - shows user dissatisfaction with the products or the app
Negative Product reviews - unhappy customers, likely to churn
Decreased use of features - wishlist or share
Low app visits - decrease in visits indicate the collection is becoming irrelevant to them or they are not being notified of new collections
Low Social media engagement

Top Reasons for Churn 🫣

Based on user interviews and app reviews, the following reasons have emerged to be the main ones:

Churn Reason	Category	User Insights indicating Churn
Do not like the collection anymore	Voluntary	The new releases are no more relevant to me and can't be worn frequently, old collection has become very common
Better alternative brands	Voluntary	Cheaper alternative brands like Bewakoof, Snitch with better collection and with good quality
Price Increases / charging convenience on returns	Voluntary	Users with membership won't renew it due to this and will switch to other brands

Resurrection Campaigns

Campaign Name	Churn Reason	Segmentation of User Type	Pitch/Content	Offer	Frequency and Timing	Success Metrics
1. New Collection Preview	Do not like the collection anymore	Users who have been inactive for a while or have stopped purchasing due to collection preferences	Did you break-up with us because you got bored? 🥺 Give us a chance and take a sneak peek at our latest collection! We've got something fresh and trendy that you'll love. ❤️ Laut aao {Name}, ham intezaar kar rahe hai🥹	Early access to the new collection, exclusive pre-order discounts	Send an email or push notification a week before the collection launches; follow-up 2 days before launch	Engagement with the new collection (CTRs) % conversion (from preview to purchase)
2. Coupons and Discounts	Better alternative brands	Users who are comparing The Souled Store with cheaper alternatives (e.g., Bewakoof, Snitch)	“We have got a delight for you. We have added 100 points to your TSS wallet, redeem them now to shop you favorites at lower prices, along with a discount coupon of 300 Rs. Don't wait up till it expires.”	100 TSS points, Discount coupon of 300 Rs.	Launch after users show interest in competitor brands or follow-up after purchase inactivity	redemption of points and discount customer satisfaction with pricing conversion from competitor comparisons
3. Membership Perks Re-Launch (Engagement Campaign #1)	Price increases / charging convenience on returns	Users who canceled or did not renew membership due to price hikes or return charges	“We’re bringing back our member perks with better value! Enjoy exclusive discounts, free returns, and more — all at the same price.”	Discount on membership renewal, free returns, or loyalty points for renewal	Email or SMS offer to users who did not renew membership, sent during peak shopping seasons (e.g., festivals, holidays)	Membership renewal rate, engagement with the perks, retention after renewal
4. Feedback & Special Discount	Negative Reviews	Users who have left negative reviews or complaints in the past	“We value your feedback! To make things right, we’d love to offer you a special discount for your next order.”	25% off on the next order or an upgraded loyalty tier	Send an email within 1-2 weeks after a negative review or complaint, with a follow-up 7-10 days later if no action	Satisfaction rate (feedback collection), redemption of the discount, customer retention post-issue resolution
5. Cart Abandonment		Users who added items to cart but did not complete the purchase	“Your cart is feeling lonely.🥺Don’t miss out on exclusive designs you love.”	10-15% off on their cart value, or free shipping on orders over ₹1000	Send an email or push notification within 24 hours of cart abandonment, follow-up 2-3 days later if not purchased	Recovery rate (cart to purchase conversion), open rates, CTRs and AOV