Coffee Beanery unlocks 65x Klaviyo ROI in first quarter using email and SMS

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Coffee Beanery has been making specialty flavored coffee since 1975. Founded by JoAnne and Julius Shaw—because JoAnne loved the smell of coffee, but wished it tasted better—the family business has grown into an international brand with 100+ coffee shops in the US and abroad, and a thriving ecommerce operation powered by subscriptions. To manage relationships with their DTC customers, Coffee Beanery relies on Klaviyo B2C CRM.

Learn why Coffee Beanery left Postscript to consolidate channels in Klaviyo B2C CRM

Challenge

When Coffee Beanery ran email marketing through Klaviyo and SMS marketing through Postscript, they struggled with sending too many messages—often sending emails and texts at the same time.

“It was a consistent issue that we were overcommunicating to our customers, because we were using two different platforms that weren’t talking to each other,” recalls Britain Butcher, director of ecommerce at Coffee Beanery. “We have a lot of older customers, and they were getting mad.”

It was a consistent issue that we were overcommunicating to our customers, because we were using two different platforms that weren’t talking to each other.

The last thing they wanted to do was alienate and lose subscribers. Repeat purchases are essential to Coffee Beanery’s business—some coffee subscribers have been with them for 40+ years.

Oversending wasn’t an efficient use of marketing resources, either. It was time to make a change.

Solution

Coffee Beanery worked with Zettler Digital on their email and SMS marketing, and founder Ben Zettler recommended that they consolidate email and SMS in Klaviyo.

Klaviyo SMS cost them less than Postscript, and having both channels in one platform helped Coffee Beanery control their messaging cadence.

We don’t miss Postscript.

“Using Klaviyo for email and SMS, you can align customer communications and not overcommunicate,” Zettler says.

Consolidation also meant Coffee Beanery could use multi-step Klaviyo forms for email and SMS sign-ups, avoiding third-party sign-up form tools and reducing expenses even further.

“We don’t miss Postscript,” Butcher says.

Strategy

Now that Coffee Beanery has switched to Klaviyo, they use the B2C CRM to drive sign-ups and recurring revenue while avoiding unsubscribes. A few Klaviyo tactics have helped them do this:

• Using Klaviyo forms to collect preference data: Coffee Beanery’s current two-step sign-up forms entice new subscribers with a special offer in exchange for data on their preferred product category. “That has wildly shot up our form submissions,” Zettler says—in the past year, their email list has grown 27% and their SMS list has grown 124%.
• Segmenting based on sign-up preference data: Coffee Beanery uses preference data from sign-up forms, plus purchase history data, to create interest-based segments and message people about their preferred products. “If somebody’s buying whole beans, they’re not buying coffee pods,” Butcher explains. “It’s nice to be able to really tailor our messaging based on what customers want to see.”
• Using multi-channel flows to manage messaging cadence: Coffee Beanery uses hybrid email and SMS automations for their abandonment messaging, shipping alerts, and replenishment reminders. This ensures email and SMS go out in a logical, staggered sequence to dual subscribers—and it helped contribute to 12% YoY growth in flow revenue in Q4 2024.

Coffee Beanery’s Klaviyo strategy is working well so far. In their first quarter using Klaviyo for email and SMS, the business saw 29% growth in ecommerce revenue. In the past year, unsubscribe rates dropped 39% YoY.

Recently, Coffee Beanery added a new Klaviyo feature to support retention: Customer Hub—a personalized, signed-in account experience that lets customers access orders, rewards, support, and more without leaving the Shopify site.

In just over two months, Customer Hub has driven more than $8,000 in revenue, with no complaints from even their oldest customers—a testament to how intuitive and seamless the experience is.

“Klaviyo is logical and easy to use,” says Butcher. “You can jump in and start playing with it and find anything that you need. Plus Klaviyo regularly, thoughtfully rolls out new features like Customer Hub.”

Zettler adds, “Klaviyo is a platform where we can leverage data and information from various resources to enhance customer journeys without needing to be rocket scientists. That’s really the power of Klaviyo.”

Klaviyo is logical and easy to use. You can jump in and start playing with it and find anything that you need. Plus Klaviyo regularly, thoughtfully rolls out new features like Customer Hub.