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How Dr. Squatch Uses Postscript AI to Drive a Double-Digits Revenue Lift

Dr. Squatch isn’t just an early adopter of SMS—but an innovator in the space. When it was time to roll out a beta group for Postscript AI, Andy Hamm, Senior Marketing Manager, Lifecycle at Dr. Squatch,  jumped at the chance.

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Postscript AI Results

Dr. Squatch has worked with the Postscript team for more than four years and they’ve always been quick to adopt a new product. However, with an onslaught of ecommerce SaaS providers offering new “AI” features left and right, the team came to the table with excitement, but also limited expectations.

+$80k
Total AI-generated revenue during beta
11%
Lift on Earnings per Message for Abandoned Cart flows
10%
Lift on Orders per Message for Abandoned Cart flows

Test, Learn, Grow with Infinity Testing

As big fans of running their own optimization tests, Dr. Squatch was excited to start with Infinity Testing, which combines predictive analytics and generative AI technology to generate and test thousands of on-brand message variants that evolve over time.

As a brand that has sent hundreds of millions of messages on Postscript, they were excited to see what the AI could teach them and if it could truly be as easy as lather, rinse, repeat.

A Serious Focus on SMS—Their Proven Top Revenue Channel

“SMS is our number one revenue driving platform on the lifecycle side of things, with some of the lowest lift to our team, which is amazing,” says Andy Hamm, Sr. Marketing Manager, Lifecycle at Dr. Squatch.

And this has been proven by their team over time. They’ve tested the impact of sending less messages (which created a dip in revenue) and then ramping up more sends (which didn’t impact unsubscribe rate.) “SMS feels like the most modern and effective communication tool and we have the revenue to prove that it is,” says Andy.

A Serious Focus on SMS—Their Proven Top Revenue Channel - Image

Using AI to Nail Their Brand Voice

One of the biggest requirements for Dr. Squatch is maintaining a brand voice throughout the entire customer journey, a requirement Postscript successfully met while onboarding Dr. Squatch as an SMS Sales customer. The success with SMS Sales gave Dr. Squatch confidence that their brand voice would also be represented faithfully by Postscript AI.

One of Postscript AI’s key features, Brand Center, allows you to train the AI models on your unique brand voice and review AI-generated copy examples to make sure they are on-brand before they’re ever sent to your audience. Brands provide feedback so that the AI is constantly adjusting and fine-tuning how well they can send messages that are entirely on brand. 

“Postscript is clearly the ROI winner for us out of all the platforms that we use. And being able to see all of these new innovations and help out with all the beta testing of all their new features is exciting,” says Andy.

Andy Hamm

Andy Hamm
Senior Marketing Manager, Lifecycle

Dr Squatch

“With Postscript, one of the most valuable resources is the team support that we have. It's really great because it’s easy to say that SMS is our number one revenue driving platform on the lifecycle side of things, with some of the lowest lift to our team, which is amazing.”

A True Incremental Lift with AI Infinity Testing

Traditional A/B tests often result in a 1%-2% revenue lift, which is what most ecommerce brands have come to expect when it comes to running tests.

However, implementing AI Infinity Testing was entirely different. It’s just as simple as running a basic A/B test: add an AI Infinity Testing action to a flow, write your control message, and turn it on. 

But here’s the difference: the AI tests hundreds of on-brand messages in the same amount of time as a simple A/B test might test two. Since turning it on, Dr. Squatch has seen dramatic improvements to already high-performing flows.

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Dr Squatch 2x conversion rate

Efficiency Gains Crucial to their Growth

"We're seeing double-digit improvements in terms of conversion rate and revenue per recipient... compared to our control in the holdout groups,” says Andy. 

But the added benefits without the added work are also a huge win. Dr. Squatch has a single copywriter who handles everything from emails and SMS to website copy and Amazon listings. These time efficiency gains are crucial to their growth. "It's really amazing to get those kinds of significant results with no time invested on our end," she says.

The impact also extends to two of Dr. Squatch’s biggest improvement goals: improving conversion rates for first-time buyers and bridging that gap between first-time and second-time purchasers.

"If we can close that gap, we're setting ourselves up for success in the future," Andy explained.

Andy Hamm

Andy Hamm
Senior Marketing Manager, Lifecycle

Dr Squatch

“Postscript AI is definitely leading the pack from an all-around efficiency standpoint with proven results.”

Uncovering Insights That Only AI Could Find

During the holdout test with their Abandoned Cart flow using Infinity Testing, Postscript's AI model came up with a curious insight all on its own: Dr. Squatch subscribers liked it when Chad mentioned his dog. The model came up with the test based on the description provided of Chad's persona and the message variants it tested.

Using this discovery, Postscript AI drove an 11% lift in revenue on the Abandoned Cart flow compared to the control group.

An 11% revenue lift for a 9-figure brand is a huge deal. And that was just from one high-performing automation. 

Testing at this scale also works as an incredible testing ground, allowing brands like Dr. Squatch to uncover insights and act as an idea generator.

Postscript AI drove true incremental revenue—without anyone having to break a sweat.

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The Value of SMS Sales + AI Testing

Dr. Squatch is known for delivering a truly personalized marketing experience over text.

With SMS Sales, they can use Chad to handle objections, offer scent suggestions, and even check if somebody has used their coupon code yet.

Many of these sales-led motions are made more powerful with current (and future) AI offerings.

Andy believes this is the future of SMS marketing.  "It's nice because it just feels much more personalized for a brand that is our size... to be able to scale personalized customer support in a way that really resonates with somebody and doesn't just feel standard and traditional."

Trusting the AI from a Trusted Partner

Andy has been pitched a lot of AI solutions from other SaaS partners, but Postscript AI was the solution with the most immediate impact. Trusting Postscript enough to be a part of the AI beta came from a long history of working together. 

“The team has done an excellent job of proving that they truly have our brand's best interest in mind, and time and time again that's never been doubted,” she says.  

She recalls a Browse Abandonment control test the Postscript team had set up, and after incorporating insights from the test, Postscript noted that there wasn’t a statistically significant lift over the control and suggested converting it back into a marketing-only flow to save Dr. Squatch money. 

“We’re never pushed towards something that we don't really need,” she says. “And all of Postscrtip's suggestions have always increased our profitability. They've increased our overall revenue. So when Postscript suggests something and says, ‘Hey, we have this thing we're excited about,’—the answer is always going to be yes.”

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Postscript AI Results

Dr. Squatch uses Postscript AI to optimize their SMS strategy by running tests infinitely, ensuring every send that goes out is aligned with both brand and strategy in mind, while being able to quickly find insights they can immediately test—uncovering knowledge that is only made possible with AI.

(Note: All results are accurate as of July 22, 2024.)

+$80k
Total AI-generated revenue during beta
11%
Lift on Earnings per Message for Abandoned Cart flows
10%
Lift on Orders per Message for Abandoned Cart flows
Andy Hamm

Andy Hamm
Senior Marketing Manager, Lifecycle

Dr Squatch

"It was really Postscript’s trust and partnership that has allowed us to build a full brand model that is able to represent both brand voice and high quality messages."

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