How Atlas Coffee Club brewed up a $22m subscription + Klaviyo attribution tips

Welcome to The Retention Newsie by The Email Marketers.

Every week we bring you the best case studies, strategies, and tips around keeping more customers, turning them into raving fans, and increasing revenue

Up this week:

• ☕️ How Atlas Coffee Club went from basement to $22M ARR

• 📊 Why Klaviyo Attribution Matters

• 🛎 Airbnb’s potential paid membership program, customer persuasion techniques & more!

Reading time: 4.5 minutes

How Atlas Coffee Club Went from Basement to Brewing $22M ARR

In 2015, Michael Shewmake wasn't a coffee connoisseur. In fact, he didn't even like coffee.

But, after a trip to a Malibu coffee shop, a barista educated him on the bean's origin and processing methods, and a lightbulb went off: how many other consumers were clueless about coffee?

With just $5,000 and working from his parent's basement, Shewmake founded Atlas Coffee Club to bring globally sourced coffee to consumers seeking the perfect blend.

Shewmake envisioned a subscription service that would not only deliver high-quality coffee from around the world but also educate and immerse subscribers in the unique stories and cultures behind each blend.

By turning subscriptions into experiences, Atlas Coffee Club went from basement to $22M ARR.

Shewmake understood that creating a lasting business required more than just delivering a product; he wanted to craft "magical moments" and retain customers through unique, memorable experiences.

Each shipment includes a postcard from the coffee's country of origin, detailed tasting cards, and stories associated with the taste.

This approach turned the subscription into more than a convenience; it became a monthly event that customers anticipated and cherished. The club's offerings transform the routine of brewing coffee into a discovery of global flavors and stories, making each sip a conversation starter and an educational experience.

Atlas Coffee Club's retention strategy is as meticulously crafted as its coffee. The subscription model promotes customer retention by offering continuous value.

However, Atlas goes beyond by ensuring that their LTV (Lifetime Value) to CAC (Customer Acquisition Cost) ratio is aggressively maintained above five.

Atlas Coffee Club transcended the role of a simple coffee distributor and became a master curator, guiding subscribers through a global exploration of flavors and cultures.

• Craft "magical moments" to elevate the experience. Small touches like postcards, tasting notes, and stories can transform a generic subscription into a journey of discovery. Remember that retention is often emotional.

• Variety drives retention. Featuring a new country's coffee each month gave subscribers a reason to stick around. A bored customer is one step away from churning.

• Know your numbers for confident growth. By defining a target ratio of lifetime value to acquisition costs, Atlas Coffee Club could advertise aggressively while maintaining profitability. Nail down these core metrics.

Don’t Dismiss Klaviyo Attribution

Many brands think Klaviyo's revenue attribution data is way overinflated and dismiss it right away.

Klaviyo’s data is key to understanding email’s overall impact.

First, though make two quick tweaks to get an accurate picture:

• Exclude Apple Privacy Opens in your attribution settings.

• Adjust the default 5-day attribution window to align with your purchasing cycles.

But don’t shift it down to the most conservative 1-day attribution option.

Examine Klaviyo’s data to understand how many purchases email played a role in.

A customer might see a Facebook ad, then get retargeted on Instagram the next day, create a cart, and abandon it. Finally on the third day they purchase after receiving an abandoned cart recovery email.

Which channel caused this sale? All of them did.

Klaviyo attribution helps understand email's role in the customer journey.

Other platforms like Google Analytics, North Beam, or Triple Whale provide a more holistic view of your marketing mix.

Attribution should be viewed as an art rather than a strict science.

• Nearly 40% of Millennials rely on retail subscriptions for their everyday shopping needs

• Airbnb is considering an Amazon Prime-like paid membership program to reward loyal customers

• Deliverability updates from Google, Yahoo, and AOL are rolling out in phases.

• Customer Camp explores the Door-In-The-Face Technique, explaining why customers are more likely to agree to a smaller request after rejecting a larger one.

• Amazon debuts a new $9.99/month grocery subscription

• Sprout Social breaks down why brand trust matters.

We help 8-& 9-figure e-commerce brands increase revenue and build strong customer relationships through retention marketing: Email, SMS, direct mail, subscriptions, memberships, loyalty programs, and more.