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Written by Anouk van Iersel, 26 July 2024

What is Klaviyo and how does it work?

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Klaviyo is a marketing automation platform that allows you to build personalized emails, smart segments and automated flows based on customer data. The platform is widely used by web shops and organizations looking to generate more revenue from email marketing. In this article you will read how Klaviyo works, which components are important and why it is a powerful system for customer engagement and conversion.

What is Klaviyo?

Klaviyo is a platform entirely about customer data. It collects behavior, purchase history, interests and interactions and uses that information to send targeted emails. As a result, each recipient receives relevant content, at the right time. Klaviyo is primarily used for e-commerce, but works just as well for B2B environments or companies with lead nurturing processes.

So how does it work?

Klaviyo builds campaigns based on data. The platform uses triggers, segments and conditions to send each email exactly on time. As a result, marketers need to do less manual work and conversions increase. Below are the main building blocks of Klaviyo.

1. Automation flows

Automation flows are preset email sequences that are sent automatically as soon as someone performs an action. Think signing up for the newsletter, placing something in the shopping cart or making a purchase.

Example of a welcome flow:

Day 1: Welcome email
Day 3: Thank you email for signing up with introductory offer
Day 7: Reminder of your personal most sold products

These types of flows increase conversion because recipients receive exactly the right information based on their situation.

2. Target groups and segments

Segments are groups of contacts that share a specific characteristic, such as behavior, purchase history or interest. Segmentation is the basis of effective e-mail marketing because you only send relevant messages.

Examples of segments:

1) New subscribers
2) Active customers (made a purchase within the past 6 months)
3) Inactive customers (did not make a purchase for more than 6 months)

Targeted segmentation provides higher returns and less waste.

3. Tags

Tags are labels you can add to contacts to further organize them. They help in quickly selecting recipients and personalizing campaigns.

Possible tags:

1) New customer
2) Webinar participant
3) Interested in Product A

4. Triggers and conditions

Triggers determine when a flow starts. Conditions determine what happens next. By combining the two, you can build very specific e-mail paths.

Example trigger: a customer adds a product to their cart but does not complete the purchase. The automated flow that follows:

Day 1: Mail with reminder and possible discount
Day 3: Mail with product benefits and customer reviews
Day 5: Final reminder with additional discount

These types of flows often yield strong revenue growth because they target warm leads.

5. Dynamic content

Dynamic content makes one email suitable for different audiences. Klaviyo automatically populates product recommendations, texts or visuals based on tags, behavior or segments.

Example:

  • Women see ladies collection
  • Men see men collection

6. Data and analysis

Klaviyo provides comprehensive insights into open rates, click behavior, conversions and revenue per campaign or flow. You can see exactly which steps are performing well and where optimization is needed.

Example: analyzing how many new subscribers buy something within 30 days via a welcome flow.
This data helps improve content, timing and segmentation.

What does Klaviyo mean for your organization?

Klaviyo is suitable for companies that want to get more out of email marketing. The platform helps with:
– Personalizing campaigns
– Increasing conversions and revenue
– Automating recurring marketing tasks
– Making better use of customer data
– Professionalizing lead nurturing or after sales

Do you work with products, services or recurring customer touch points? Klaviyo puts a grip on data and makes email marketing more effective.

Need help with Klaviyo?

Want to use Klaviyo for your marketing or need help with flows, segments or strategy? Feel free to contact us. We’d love to think with you about structure, data and the right structure for your email marketing.

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