The agency won the account following a three-way pitch handled by AAR. Karmarama will be responsible for DFS’s direct marketing, data analytics, content strategy and delivery.
Karmarama will start working with DFS from September and will start by developing a three-year direct marketing strategy.
DFS has previously used a number of agencies over the three different disciplines on a project-by-project basis in recent years, but is now looking for a permanent relationship with an agency.
Davnet Reid, the head of analytics and customer experience at DFS, said: "We selected Karmarama based on the strength of its creative content and its ability to combine what we considered an outstanding commercial focus, with a genuine understanding of the consumer.
"We’re also confident that Karmarama has a team that can hit the ground running and partner with our above-the-line agency Krow to develop a fully rounded, customer-centric marketing strategy."
DFS’s relationship with any incumbent agencies including Krow and MediaCom are not affected by the appointment.
Caitlin Ryan, the group executive creative director at Karmarama, said: "We are over the moon about winning this. DFS is a business that understands the true potential of customer data and creating compelling content, and as an agency we are incredibly well set up to deliver the work. We can’t wait to get started."