Cara Cara sees 170x Klaviyo ROI in first 3 months with B2C CRM

---

Cara Cara makes women’s fashions in vivid, original prints. Founded in 2019, the brand is actually named for the orange varietal featured in their very first print. Initially known for resortwear with dressmaker details, Cara Cara has expanded over the years into polished eveningwear, outerwear, and knits for all seasons—sold through an ecommerce store and stockists like Saks and Bergdorf Goodman.

Learn why Cara Cara chose Klaviyo B2C CRM for their personalized retention strategy

Challenge

In the early days of Klaviyo SMS, when the channel tools were still being built out, Cara Cara left the product for another SMS platform.

But using different platforms for email and SMS was frustrating.

It became more and more of a blocker as Cara Cara built out a personalized, hyper-segmented approach to email in Klaviyo—tailoring messaging to not just customers’ purchase history, but also their browsing data and acquisition channel.

It was hard to align all that with their SMS strategy. It took a lot of manual toggling to even coordinate email and SMS send times across the two platforms.

“We didn’t have as much information in the other platform we were using as we did Klaviyo,” says Julie Nagelberg, growth marketing lead at Cara Cara. “It just didn’t feel cohesive.”

We didn’t have as much information in the other platform we were using as we did Klaviyo. It just didn’t feel cohesive.

Solution

Cara Cara decided to return to Klaviyo SMS, and add on Klaviyo Marketing Analytics.

“We were thinking about the next few years and how we could streamline our owned marketing channels, and decided it made sense to have email, SMS, and analytics in one place,” Nagelberg explains. “We’ve since seen results that prove this was the right move.”

Their newly consolidated Klaviyo stack allows Cara Cara to try multi-channel tactics that wouldn’t have been possible previously—like launch hybrid flows, or leverage the same RFM segment across email and SMS.

We were thinking about the next few years and how we could streamline our owned marketing channels, and decided it made sense to have email, SMS, and analytics in one place.

“Klaviyo B2C CRM is user friendly,” Nagelberg says. “The way you’re building an email is very similar to the way you’re building an SMS, and all of the functions are similar.”

Cara Cara has already used Klaviyo to create a more deeply personalized experience across email and SMS, efficiently and cost effectively.

In their first 3 months using a consolidated Klaviyo stack, starting in mid-October, Cara Cara saw 67x ROI from SMS alone, and 170x ROI from the platform overall.

Strategy

Recently, Nagelberg is focused on implementing new segmentation strategies.

She’d been building segments manually for years, but she’s enjoying the new level of guidance Klaviyo offers through Marketing Analytics—with auto-generated RFM segmentation and strategic recommendations and insights from dashboards like the conversion overview

“It has been really helpful to let Klaviyo take all the data we have and generate segments for us,” Nagelberg says. “It opened our eyes to the value of the RFM groups as well as Klaviyo’s data-based approach.”

By sending campaigns to multiple RFM segments and checking campaign performance by segment daily, Nagelberg has gained new insight into which messaging resonates with which customers. For example:

• Churn-adjacent customers in the “At risk” and “Needs attention” RFM segments often respond well to educational messaging—styling tips for cold and warm destinations, for example, or more information on how a garment is made and why it’s special.
• More engaged customers in the “Champions” and “Loyal” RFM segments often prefer a text message or a quick update about a new product.

Executing on findings like these has helped Cara Cara create a cohesive omnichannel customer experience—and improve performance. In their first 3 months using Klaviyo for email, SMS, and Marketing Analytics, Cara Cara saw 48% of their Klaviyo revenue from repeat purchasers, and 27% YoY growth in total ecommerce revenue.

“Klaviyo is amazing for B2C brands,” Nagelberg says. “The platform does a good job being transparent with dashboards, benchmarks and recommendations, and flagging, ‘Hey, maybe you should try this,’ or ‘This is really working, do more of it.’ It’s very data-driven which is invaluable to a young DTC brand like Cara Cara.”

Klaviyo is amazing for B2C brands. The platform does a good job being transparent with dashboards, benchmarks and recommendations, and flagging, ‘Hey, maybe you should try this,’ or ‘This is really working, do more of it.’ It’s very data-driven which is invaluable to a young DTC brand like Cara Cara.