Castlery Sees 100x+ ROI With a Retention-First Strategy
3
owned channels orchestrated through Klaviyo: Email, SMS, WhatsApp
>100x
ROI on Klaviyo spend in H1 2026
51%
of ecommerce revenue from Klaviyo in H1
Castlery is a global retailer designing contemporary, modern furniture for the way people actually live. They mix beauty, craft, and functionality to build pieces for the modern home. Founded 12 years ago, they've grown from an online-only brand to a true omnichannel retailer with stores in Singapore, Sydney, Brisbane, and New York. For the past five years, they've used Klaviyo to power smarter customer relationships.
Learn how Castlery shifted from acquisition mode to a mature, category-driven retention strategy
Challenge
For most of Castlery's history, the focus was on acquiring new customers rather than building relationships with existing ones. With 60 to 70% of customers being new to the brand at any given time, that made sense — new shoppers were often comfortable buying certain categories from a brand they didn't know yet, while other, higher-trust categories tended to wait until customers felt more confident in Castlery.
"Honestly, we were not focusing too much on CRM and retention for quite some time," says Leah Howatson, GM of International Markets at Castlery.
But as Castlery matured in its longest-running markets, entering its second decade in Singapore and approaching 10 years in Australia, repeat purchase behaviour started to look different, and the business needed a real retention strategy to match — one that could nurture customers from that first, lower-trust purchase toward the categories that signal deeper loyalty.
Solution
The team's biggest insight: customers are comfortable buying certain categories from a brand they don't know yet, but save other, higher-trust categories for once they've built confidence in Castlery. Rather than treating retention as a blanket metric, Castlery uses Klaviyo to nurture customers from that entry-point purchase toward the categories that mark a deeper relationship with the brand.
The team evaluates Klaviyo's contribution by looking closely at whether newsletters and triggered flows are actually converting, not just engaging, under a multi-touch attribution view — and adjusts strategy to steer more of that engagement further down the funnel, toward those higher-trust categories.
Castlery brought on a dedicated Klaviyo lead to build out the flows and logic the brand had been missing, spending the last six months getting the retention piece and triggered flows properly set up. That focus shows up directly in the numbers: automations drove 74% of Castlery's Klaviyo-attributed revenue in H1 2026, while campaigns are used more to engage and inspire than to convert.
Strategy
Castlery's approach to retention is built around getting more specific: about categories, about channels, and about how online and offline experiences connect. They do this with three key tactics:
- Building a post-purchase flow around category behaviour. Castlery rolled out a triggered post-purchase flow layered with an understanding of how customers shop by category. If someone buys a bed, the flow nurtures them toward complementary items like bedside tables or a rug, rather than sending generic follow-up content.
- Connecting online and offline into one customer view. Castlery's in-store stylists can send a customer's in-progress cart to their online account, and shoppers browsing online can walk into a store and have staff pull up the exact products they'd been exploring. Rather than splitting performance into online versus offline, the team evaluates results city by city. Markets look different from one another too: in Singapore, the brand is mainly offline with high brand awareness, while in the US, the business is overwhelmingly online, in a much more competitive landscape.
- Localising a single system across very different markets. A global Klaviyo lead and tech counterpart support country teams who adapt flows and campaigns to local nuance. Castlery is still early in building out this retention muscle. A recent WhatsApp and SMS automation in the US is already accounting for a double-digit share of triggered revenue, alongside ongoing tests like AI-optimised send times.
"Castlery is committed to building a strong relationship with our customers, one that translates into retention and business growth by anticipating their needs and building that foundation on Klaviyo. We're focused on continuing to uncover insights into how customers want to furnish their homes, so we can build flows that anticipate what they need next."