How Caraway Used SMS to Increase Welcome Series Revenue

Customer: Caraway   Industry: Home Goods   Platform: Shopify

Customer: Caraway
Industry: Home Goods
Platform: Shopify

7.5% Form submit rate on Caraway’s mobile form using the text-to-subscribe feature
13.7% Placed order rate with Caraway’s introductory text message of their welcome series
60% Increase in welcome series revenue in the last 30 days
Form submit rate on Caraway’s mobile form using the text-to-subscribe feature13.7%
Placed order rate with Caraway’s introductory text message of their welcome series

Increase in welcome series revenue in the last 30 days

Caraway launched in 2019 with high-quality, ceramic-coated, non-toxic cookware. Their products are free of Teflon®, lead, cadmium, and other toxic materials that can make their way into your food with traditional non-stick cookware. And since they’re not big on clean-up and messy storage, they make everything easy to wipe down and store neatly after use. Simply put, Caraway products are designed to make your life easier and healthier, no matter your level of expertise in the kitchen.

Caraway chose Klaviyo as their email platform during their pre-launch phase in 2019. They used Klaviyo to collect emails from people who were most excited about the brand and keep them informed about the launch process.

Since then, Caraway has done nothing but grow, grow, grow—with some help from Klaviyo. Last year, a double-digit percentage of Caraway’s revenue was attributed to email marketing and the strong relationships they built with their customers. This year, Caraway has already grown email revenue 10x as they aim to generate an even higher percentage of total revenue from their owned marketing channels.

Caraway started looking for an SMS platform about six months ago. Josh Knopman, Caraway’s growth lead, was in charge of the search and knew SMS would be an important channel for the brand.

He tested multiple providers to understand features, functionality, and usability. But eventually, Josh chose to utilize Klaviyo SMS because he wanted to seamlessly use email and text together in campaigns and automations. Plus, he wanted to continue using Klaviyo’s best-in-class segmentation to target audiences and personalize SMS messages the same way he does for email.

“Klaviyo’s ability to target audiences and personalize content is vital to Caraway’s growth. As we gain more customers, subscribers, and fans we want to leverage the power of Klaviyo’s personalization more and more. As a Klaviyo customer, adding SMS alongside email is a no-brainer.”

Josh Knopman

Growth lead, Caraway

Before they could get started with SMS, Josh had to decide how to integrate SMS with email into their overall strategy. Should they start by collecting phone numbers from only current email subscribers? Or should they introduce email and SMS to new website visitors immediately? Then, Caraway had to decide how SMS should be used alongside email. What information do they communicate via SMS versus email? How do they set up their automations to balance each channel?

In the end, Josh decided the best option was to start fresh, collect phone numbers and emails from new subscribers, and weave SMS into their existing automations and campaigns.

To execute this plan effectively, they needed to update their signup form. With the Klaviyo Form Builder, it was as easy as dragging and dropping a phone number field onto the form, adjusting the copy, and adding the provided consent language. Caraway was off and running.

They also wanted to target new site visitors so only they could see the form. In a single click, the form was updated to only appear for non-subscribers. To further encourage subscription, Caraway added a special mystery gift incentive. Since the update, the new desktop signup form boasts a subscription rate of over three percent.

For mobile visitors, Caraway updated their mobile experience to use “text-to-subscribe” functionality. “Text-to-subscribe” allows a customer to subscribe without ever entering a phone number. All they need to do is click the signup button and a text message will automatically queue up. Once that message is sent, they’re subscribed! This seamless implementation has succeeded in collecting phone numbers from over seven and a half percent of Caraway’s mobile visitors.

What does a subscriber receive from Caraway after signing up with their phone number? A text message that instantly delivers on the “special gift” promised on the signup form.

Caraway wanted to know which type of gift their subscribers would enjoy more: a discount on the purchase or a free gift with purchase. To figure it out, they set up a test in their welcome series in two minutes.

The test sent half of Caraway’s SMS subscribers a discount and the other half received a free gift. In real-time, Caraway used flow analytics to quickly see which text generated more clicks and orders.

One of the main benefits of SMS is that texts are both delivered and read quickly, so as soon as a visitor signs up for Caraway, their offer is sent to their phone and they are immediately able to use it. By taking advantage of the immediacy of SMS, Caraway has seen a 60 percent increase in welcome series revenue.

“We’re using SMS in Klaviyo to immediately delight new subscribers. They see the offer, sign up, and can instantly redeem it. When they do, we now have a new powerful direct line of communication with that customer to make them aware of future product launches and initiatives.”

Josh Knopman

Growth lead, Caraway

Caraway leverages the same benefit of immediacy to announce new product lines. Back in April, Caraway launched a new Linens Collection. To make the announcement, they sent both a campaign SMS and email. Caraway sent the text message first and, over the next fifteen minutes, 46 percent of subscribers clicked on the link to check out the new products.

Using Klaviyo, Caraway seamlessly added text messaging to their marketing strategy. They’re collecting both emails and phone numbers from new subscribers, which has been integral in using SMS to drive more immediate purchases of their core products as well as new releases.

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