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eCommerce

Dollar Shave Club sees 30%+ reduction in TCO by consolidating CRM stack in Klaviyo

64/100validation score
237000000units
email and SMS messages sent in last 12 months
30%
reduction in total cost of ownership (TCO)
60%
reduction in campaign set-up time

Dollar Shave Club migrated from a siloed, high-maintenance tech stack to Klaviyo B2C CRM, replacing three separate tools and achieving a 30%+ reduction in total cost of ownership, a 60%+ reduction in campaign set-up time, and sending 237M email and SMS messages in the last 12 months.

We had to get our developers involved in every single part of the email process. We're a small and scrappy team, and we didn't have the resources we needed to scale.

Melanie Fox, Director of Lifecycle Marketing

The biggest unlock from Klaviyo has been personalization at scale. We can do things we've never been able to do before because everything is under one roof. We can find our best customers and treat them like our best customers.

Melanie Fox, Director of Lifecycle Marketing

We look at Klaviyo as our B2C CRM—I know we have our best, most continuous customer record in Klaviyo, and I have a high level of confidence that the roadmap is anticipating all our needs. You're going to have to pry Klaviyo from my cold dead hands.

Bill Hudak, VP of Acquisition and Retention

The interoperability and native integrations that Klaviyo brought to both Ordergroove and Shopify were best in class. Integrations can result in a reduction of TCO and dev resources required.

Bill Hudak, VP of Acquisition and Retention

Dollar Shave Club viral launch YouTube clip from 2012 (28M+ views)

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1

About the Vendor

Klaviyo is a B2C CRM platform that unifies email marketing, SMS, customer data (Klaviyo Data Platform), and web forms into a single integrated solution. It offers native integrations with ecommerce platforms like Shopify and subscription tools like Ordergroove, enabling brands to personalize customer experiences at scale with minimal developer support.

2

About the Brand

Dollar Shave Club is a subscription-focused, digitally-native consumer brand that sells razors, shave accessories, and skincare products directly to consumers. Founded in 2012, they disrupted the shaving and grooming category with a viral DTC model and have since expanded into major brick-and-mortar retail chains.

3

Challenge

Dollar Shave Club was growing fast and diversifying their product catalog, but their siloed tech stack made it impossible to personalize the customer experience at scale. They relied on separate SaaS platforms for email marketing and customer data, plus custom-built solutions for subscriptions and ecommerce. Every email had to be built with HTML, pulling new customer data for segmentation could take a month or more, and developers had to be involved in every part of the email process. The lifecycle team worked with 4 developers and still lacked the resources to scale personalization based on tenure, frequency, and purchase activity.

4

Solution

Dollar Shave Club migrated to a modern SaaS stack: Shopify for ecommerce, Klaviyo for CRM, and Ordergroove for subscription management. Klaviyo replaced three tools: an email marketing platform, a standalone CDP (replaced by Klaviyo Data Platform), and a pop-up tool (replaced by Klaviyo Forms). They later added Klaviyo SMS, consolidating all customer data into cohesive profiles on one platform. The native integrations between Klaviyo, Shopify, and Ordergroove were cited as best-in-class, reducing TCO and developer resource requirements.

5

Execution

With Klaviyo, Dollar Shave Club implemented personalized shipment alert flows with one-click upsell ordering powered by the Ordergroove integration, reducing cancellations and increasing average order value. They also deployed targeted Klaviyo Forms for SMS sign-up pop-ups, showing offers only to browsers without an existing Klaviyo profile to drive incremental SMS subscribers without blanket discounting. The lifecycle team reduced developer dependency from 4 developers to at most one.

6

Results

By consolidating their CRM stack into Klaviyo, Dollar Shave Club achieved significant cost savings, operational efficiency, and unlocked personalization at scale. The lifecycle team went from requiring 4 developers to at most 1, campaign set-up time dropped by 60%+, and TCO fell by more than 30%. They now send 237M email and SMS messages annually and can personalize messaging based on customer tenure, frequency, and purchase activity without manual, brute-force effort.

Tech Stack

KlaviyoKlaviyo Data Platform (KDP)Klaviyo SMSKlaviyo FormsShopifyOrdergroove

Competitive context

Previous vendor: Separate email marketing platform, standalone CDP, and pop-up tool
Reasons for switching: siloed tech stack required developer involvement for every email, customer data segmentation took a month or more, emails required manual HTML builds, high total cost of ownership, inability to personalize at scale without brute-force manual work

Validation breakdown

Audited against Merit's standard
Evidence quality67/100

How well the outcomes are documented and traceable.

Authority signals60/100

Brand recognition, client relationship, and external references.

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Merit Validation Team✓ Verified
Independent audit · Merit standard

Data source: declared · mention