How to Cut Your Klaviyo Costs in Half!
2024 has been slow for ecommerce.
Inflation, cost-cutting, election drama… all take customer mindsets away from shopping.
So inevitably, there’s some belt-tightening.
Here’s how I cut my clients Klaviyo costs way down… while doubling their emails revenues at the same time.
This is all part of my MachX Email Masterclass as well.
Now, I have dozens of ways of doing this but I’ll give you one you can implement in five minutes.
Let’s start with some segmentation basics:
Only 3 to 5% of your audience is in buying mode.
So hitting your FULL LIST is a non-starter.
Instead, we need to listen for “indicators” that tell us a customer is interested in buying.
Now, Klaviyo tells you: that’s our Engaged Segment!
Whomever is opening, clicking, viewing products, or active on site in the last 30 days should be who you mail.
See this:
Here’s the secret: that’s STILL TOO BIG.
And your Klaviyo costs will continue to skyrocket.
So here’s how to break free.
Do the following – build out an Engaged Last 30 Days Segment (see above for the definition).
And then I want you to do something radical: remove openers.
Now, the mailbase shrinks by 90%.
But the QUALITY OF THE SEGMENT doesn’t!
Remember: every relationships starts with a click.
So subscribers who click emails are significantly better than opener.
And only the BEST openers are included since you can’t click emails if you don’t open them.
But we’re not done yet.
You’re next going to add:
- Active on Site in Last 30 Days
- Started Checkout in Last 30 Days
- Added to Cart in Last 30 Days
Now, we have a small yet mighty segment that contains subscribers who have shown INTENT to buy.
Aka, those 3% to 5% of people who are actively in buying mode.
Here’s how it looks:
Now, we have a small yet mighty segment that contains subscribers who have shown INTENT to buy.
Aka, those 3% to 5% of people who are actively in buying mode.
Rename this segment “HFD_HighEngaged_Last30Days”
But test it to prove it: run campaign A to the high engaged segment and then run campaign B to the engaged segment.
Run it 8 to 10 times and see where majority of your revenue comes from.
Your KPI is “revenue per recipient” not just total revenue because, depending on your email program, you could have thousands of openers and few clickers.
Prediction (based on 1 billion emails sent over the last two years): the high engaged segment will make the most money yet you’re only sending to 1/10 the mailbase.
Saving money on Klaviyo, while making more.
We’re not done yet – there’s still more to do on segmentation & personalization – but this will start reducing your Klaviyo costs.
And create a better customer relationship.
Your homework for this week:
1) Create a High Engaged segment
2) Run an A/B test against your Engaged segment
3) Check the results weekly
Segmentation and personalization.
That’s how you cut your email costs down and double your revenues.
This is just the beginning.
Click here if you want to implement more 10-figure email & SMS strategies of the top brands in minutes, not month.
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