What is Klaviyo and Why is it a Good Fit for E-commerce?

Klaviyo is an email marketing tool built for online stores. Klaviyo allows you to create smart segments based on your data, enabling you to send the right message at the right time. Better marketing leads to increased revenue. When we implement Klaviyo for our clients, we see that it generates at least 20% of total revenue. Are you looking for a Klaviyo agency?

In this article, we will explain what Klaviyo is and whether it is suitable for you.

What is Klaviyo?

Klaviyo (pronounced Klee, Vie, Joo) is an email marketing automation solution established in 2012 by Andrew Bialecki and Ed Hallen. Their goal was to create a tool that could bring together data, analytics, and messaging, making it easier for companies to communicate in a targeted and personalized manner with their customers. (Fun fact: Klaviyo comes from the Spanish word "Clavija," which means plug or pin.)

Klaviyo is built around this idea: Using data to drive your marketing delivers better results. The platform makes it easy to pull in important data, use it to personalize your marketing content, target your campaigns, review your results, and optimize performance.
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Data-Driven Email Marketing as a Revenue Driver

The foundation of Klaviyo is data-driven marketing for online stores. Use behavior, purchase history, and other customer data to show the right marketing message to the right people.

The result is a system that tracks the customer journey to achieve repeat purchases. This way, you build a relationship with your customers through personalized emails. “Why email?” you might ask. Email is still the marketing channel with the highest ROI in 2022. We have seen 20% to 50% of total revenue come from email marketing for our clients.
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Technical Implementation in One Click Through Direct Integration

Data is retrieved in real-time, allowing you to work precisely and accurately with dynamic segments. In the past, data integrations often came with high development costs. Fortunately, that is not the case with Klaviyo. Klaviyo has direct integrations with major e-commerce backend systems. This means you can install Klaviyo in 10 minutes without the need for a developer.

Klaviyo integrates directly with these online store systems:

• Shopify & Shopify Plus
• BigCommerce
• Magento
• WooCommerce
• 3dcart
• OpenCart
• Lightspeed POS

Is your online store CMS not listed? Then a custom integration is possible. This will be custom programmed via the API.
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A Comprehensive Solution for Newsletters and Marketing Automation

Mailchimp is a great tool for newsletters. But how do you integrate that data? The power of data-driven marketing also lies in combining data for your newsletters. For many of our clients, this was complicated and time-consuming. Now that they use Klaviyo, it works very simply.

Let’s take an example: Suppose Anna bought a product from your webshop yesterday without a discount. If Anna receives your newsletter today offering the product at a 50% discount, she will be disappointed. You also want to segment based on customer data within the newsletter.

With Klaviyo, you combine all this data into simple segments. You filter out customers who just made a purchase with one click from your newsletter. This way, you can combine data, making your targeting even better. The outcome is lower unsubscribe rates and higher revenue per sent email.
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Emails are easy to build and mobile-friendly

In Klaviyo, just like in Mailchimp, you can easily design emails without the need for a designer or developer. Klaviyo's email editor works very well. Build your own emails without writing a single line of code or use one of Klaviyo's mobile-friendly templates to get started even faster. Create a free account and try it yourself.

Use Klaviyo’s templates or build your own template. For our clients, we often set up one master template so that you can easily build and send your own emails based on that.

Advanced options are also possible. For example, you can use product feeds to dynamically display products in emails. Conditional blocks are also among the options.
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Build marketing automation flows with the visual flow designer

You can easily build automated email flows with the visual editor. You have a canvas that allows you to visually develop your flows with a drag & drop builder.
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Use Klaviyo data for custom audiences in Facebook and Instagram

Klaviyo is more than just marketing automation and newsletters. You can also create Facebook audiences based on clicks in emails and even send SMS messages to customers. From Facebook campaigns for your top customers to win-back Instagram stories for customers who no longer open the emails. With Klaviyo, you use data in all sorts of creative ways throughout the customer journey.

Reporting based on ROI

Look beyond opens and clicks and see how much revenue you’ve generated from your email marketing campaigns. Klaviyo includes all the options that online stores need (and dream of).

Additionally, Klaviyo also offers other advanced features

Klaviyo allows you to create dynamic segments and lists, add pop-ups to grow your email list, and use machine learning and AI for even better personalization. This may sound complicated, but it doesn’t have to be. We can help you set up Klaviyo funnels so that you can get started on your own.
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Key Klaviyo Features

• Powerful Segmentation
• Extensive integration with webshops
• Pop-ups (with strong segmentation options)
• Dynamic content
• Product recommendations
• Dynamic discount codes
• Machine Learning and AI - Smart Sending
• Various ready-made templates

Who uses Klaviyo?

Online stores for whom repeat purchases are important. We see many good examples, particularly in the lifestyle, fashion, and beauty sectors. If customer loyalty and retention are important for your business, then you need Klaviyo in your marketing. Also, for brands for whom Facebook and Google advertising are becoming increasingly expensive, Klaviyo is a good solution. It ensures that the Customer Lifetime Value (CLV) increases so that you can afford higher acquisition costs. Brands that value their design and storytelling are also increasingly making the switch to Klaviyo. With ‘owned media’, you can tell your story better and be visible.

Worldwide, there are over 30,000 companies using Klaviyo. Some well-known Dutch Klaviyo clients include: Unilever, Mr Marvis, Wildthings Collectables, Bedankjes.nl, Gladskin, Cortazu

What are the costs of Klaviyo?

The costs of Klaviyo are based on the number of email addresses to whom you send an email in a month, and not based on the number of email addresses on your list. Klaviyo is free up to 500 accounts and is charged based on different levels of emails above that. Klaviyo's packages can be adjusted monthly so that you don’t pay too much. You are also not tied to an annual contract. Interested in Klaviyo? Create your free Klaviyo account here (up to 500 accounts).
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What does Klaviyo deliver?

According to Klaviyo's figures, e-commerce businesses see an average ROI increase of 67% by switching to Klaviyo. Many Klaviyo customers experience these three outcomes after switching to Klaviyo:

• Increased open rates due to better use of segmentation
• Increased revenue percentage from email
• Increased revenue per recipient
  

Ask yourself the following question: What percentage of your revenue is currently generated by email? For clients of Polaris Growth, this is at least 20% of total revenue. Curious if this is possible for you too? Fill out the calculator to determine your revenue potential. Or contact us at 020 244 31 81 for a no-obligation conversation.

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Polaris Growth is a Klaviyo Master Partner

We are not just any Klaviyo Elite Partner  in the Netherlands for nothing. At Polaris Growth, we know Klaviyo inside and out, and we also have years of experience in email, conversion optimization, online marketing, and e-commerce growth. By working with Polaris Growth, you gain access to our expertise, allowing you to continuously work on optimizing email and growing your business.