Growing a business requires different strategies at different stages of your growth. But one thing that must remain consistent and high-quality as you evolve: your customer experience. Hear from Megan Whitman, chief digital officer of Kopari to hear about the different and changing ways this beauty brand has leveraged Klaviyo to increase revenue and boost customer satisfaction during the various growth stages of their business.
Despite packaging delays and a launch email misfire, Megan used Klaviyo to grow one of the first beauty supply ecommerce stores. When a Klaviyo survey revealed that customers wanted to try products in-store and a deal with Sephora was inked, Megan used Klaviyo to provide needed purchase statistics. She used Klaviyo as the firm's CRM and connected it to their customer service team so that agents could access campaign emails that inspired queries.
They also used Klaviyo to set up direct mail segments and track their success through Klaviyo.
After a very popular coconut deodorant, which at $14 was less than half the brand's average $30 price point, dropped average cart value significantly, Kopari initiated customer feedback queries. In fact, telephone queries are now constant.
Personalization has become Kopari's engine for growth, and Klaviyo is used to customize forms and web experiences (through UTM links).
Next steps include personalized content blocks, additional flows based on recency, frequency and spending habits and pushing data into other technology partners to align messaging.
Senior Product Manager, Klaviyo
Boston Convention and Exhibition Center
One of the best ways to grow your business is to build a marketing automation strategy that makes money while you sleep. Klaviyo Flows allow you to create automated touch points across the entire customer journey—ensuring you’re consistently engaging your customers with personalized, relevant messages. Don’t miss our resident Flow expert teach you strategies guaranteed to help grow your business.
"Make Money While You Sleep" sounds like a pretty click-baity, if not downright spammy title, but Alexandra opened with statistics showing how flows outperform campaigns, including having average open rates that are 1558% higher.
She then presented a slide of two dozen flows she contended were all important to develop the customer relationship, just as you would nurture a friendship, when most people create four flows and stop there.
Here are Alexandra's tips on a flow-by-flow and topic basis.
Add a branch for customers versus prospects at the top and then tie back into the main flow.
Add a split so that only high-value carts get discounts to better maintain margins.
Add a location split to offer free shipping domestically and a discount if international to control shipping costs.
Provide category splits for your top categories to tailor copy just to that topic and send general subject lines and copy to everyone for whom no specific category split has been created. This tactic should be used for many flows.
Also, Alexandra urged the audience to use data science by using the lifecycle touchpoint from the Klaviyo library, noting that one customer sent a flow with 9 emails and still got a 32% Open Rate on the ninth email.
Predicted Customer Lifetime Value and Predicted Gender also enable much more targeted flows.
She underscored the importance of continuing to test. Even if you just send to a small sample set an email that reflects an untried idea, you will statistically grow revenue by testing. For example, optimize your series length by testing adding an additional email or two while monitoring engagement.
Finally, Alexandra recommended tagging profiles with first purchase date. One flow tags each profile with the specific date of the initial purchase, then a second flow follows up with specific content to celebrate the anniversary of the first purchase. Depending on how many years are involved and whether additional purchases have taken place since, the content and discount change.
Another example of tagging profiles includes adding categories to target initial purchases, continued purchases and categories abandoned altogether. Flows can also tag customers into particular loyalty tiers: customers who have purchase X times, X+Y times, etc.
To design a flow, consider your goals, triggers, customer personas and benchmarks for open rates, clicks and conversions.
Besides smart sending, tagging recipients as "in flow" (and then running a separate flow to remove the tag) will prevent a prospect from receiving too many emails.
Andrew Bialecki (@abialecki) discussed the evolution of Klaviyo's building $3 billion in "owned revenue" (which consolidates revenue generated through email, websites and mobile purchases) with some backstory.
In 2011, Andrew as a Boston software engineer, started RunningSneaks on the side, to enable visitors to register for upcoming races. In interviewing prospects, he identified a lot of interest among race event organizers in better online registration tools. He knew that the longer he spent connecting with prospects, the better his business prospects became. However, especially as a part-timer, he simply couldn't scale himself and, as an engineer, became obsessed with the problem of scaled marketing.
He eventually launched Klaviyo in 2012 because email was the best way to scale marketing. Owned revenue turned out to be typically between 15 and 60% of total revenue. With easy-to-scale email, this slice of owner revenue can grow.
Due to the massive investment made in high-tech platforms today, a lot of companies accept that their business must be built on somebody else's platform, but now the pendulum is swinging back to companies owning their own platform, in this case their email list.
When you build your revenue based on a platform you control, you can be yourself easier. As an exercise, Andrew asked Klaviyo employees to introduce themselves with an email and saw a tremendous variety of subject lines, imagery and storytelling.
Tom McClintock is the owner and founder of Relationship Martech.