Pablo & Rusty’s brews up deeper customer insights to drive 61x email ROI

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Pablo & Rusty’s is an Australian specialty coffee roaster founded in Sydney. What began as a small roastery in Ryde has grown into a brand for sustainability, delicious coffee, and impact. As a B Corp-certified, Carbon Neutral (Certified by Climate Active), and 1% for the Planet member, they are a profit-for-purpose company. Serving both retail and cafe customers, they also offer a coffee bean subscription, delivering fresh coffee right to the door. 

Learn how Klaviyo Marketing Analytics helped Pablo & Rusty’s improve customer loyalty

Challenge

Pablo & Rusty’s needed deeper insights into customer behaviour and required more advanced segmentation and data analysis than they could get from Mailchimp. The team found it difficult to align email engagement metrics with actual business outcomes such as purchases and repeat customers, and they also struggled to optimise their email frequency for their audiences. 

“Instead of just casting a wide net, we wanted to focus on specific segments and really dig into our customer behaviour,” says Chris Tate, Operations Manager at Pablo & Rusty’s.

Solution

After implementing Klaviyo and switching on Marketing Analytics, Pablo & Rusty’s gained deeper insights into customer behaviour. This allowed them to focus their email strategy on the customer segments and campaigns that were driving not just conversions, but long-term loyalty. 

Klaviyo’s native integrations with Shopify and Recharge also made it easier to monitor and improve retention, a key priority for their coffee subscription model. 

Being able to make sure our integrations are live and continuously updating allows us to reconnect with churned customers and re-engage those who have stopped opening emails.

Strategy

With the help of Orange Creative Co, Pablo & Rusty’s used Klaviyo’s integrated RFM analysis to track how the size of customer segments from “at risk” to “champion” fluctuated in response to marketing initiatives. They also use the cohort analysis to understand the timing of customer conversions, to target their audience on the right channel and minimise unnecessary email sending. They also started using cohort analysis to optimise their email strategy and minimise waste.

Pablo & Rusty’s turned customer insights into marketing action by:

• Measuring the impact of big bet marketing campaigns: During a major sales event, Pablo & Rusty’s donated a percentage of online sales to a local non-profit, while still providing a discount on select products. With RFM analysis in Klaviyo, the team saw this strategy helped drive a 10.8% increase in their loyal and recent customer segments in Q4 2024

One of the most valuable insights before this big sales period in November 2024 was seeing movement within customer segments. By December, we could see inactive and at-risk customers shifting into loyal or recent buyer categories, proving the strategy worked. RFM analysis alone drove significant impact.

• Sending fewer, but more targeted emails: With data centralised in Klaviyo, Pablo & Rusty’s identified a segment newsletter subscribers who rarely opened emails but continued to make purchases. To minimise email waste and improve deliverability without sacrificing revenue, they shifted away from sending newsletters to these customers, instead creating targeted flows for customers based on their purchasing habits.
• Optimising send times to better engage customers: Through extensive A/B testing, Pablo & Rusty’s identified the best times and days to send emails, the most responsive customer segments, and how to re-engage inactive users. For example, people who hadn’t bought anything or opened an email in a year were targeted with online ads with Klaviyo’s Meta integration.

As we build out more Klaviyo flows, we’re gaining valuable insights into which products to prioritise. We know we need to keep evolving with the platform and unlocking its capabilities as it develops.