The beginning of the year 2023 has been down for many traders compared to a year ago. With the changes in the market and purchasing, merchants are expected to provide increasingly personalized customer experiences for their customers.
Back in the 2010s, Meta and Google know-how was enough for profitable business and customer acquisition. However, as competitors increase, channels become more diverse, and platform restrictions change, customer acquisition costs have increased. Making the first purchase of a new customer profitable is not a given, which is why customer acquisition alone is not enough.
Klaviyo
Klaviyo is a powerful email marketing platform that can be used to personalize your eCommerce customer experiences. Personalization is the process of tailoring your marketing messages and content to the specific needs and interests of each individual customer. By personalizing your eCommerce marketing efforts, you can improve your engagement rates, increase conversions, and build stronger relationships with your customers.
We discussed with our partner Klaviyo how and why, in addition to achieving sales transactions for the online store and other sales channels, we should also be able to offer customers other compelling solutions.
What do you think e-commerce personalization means?
E-commerce personalization is sending the right message to the right person at the right time. Understanding your customer’s behaviours, preferences and what resonates with them is crucial in such a crowded place.
Why is personalization important to do?
Understand who your customer personas are and invest in the right technology. What your customer values will change from person to person—and the messages that resonate and inspire someone to make a purchase also differ. With the right marketing automation technology, you can personalize how you communicate with people at different stages of the e-commerce buyer journey. This makes your messages more relevant and likely to drive revenue.
How effective tool Klaviyo is with the Shopify platform?
There are several reasons why Klaviyo and Shopify go hand in hand.
- Ease of integration: the integration works out of the box and can be completed in a matter of minutes.
- Synchronizing data is quick, such as metrics, adding subscribers to a list, or tracking how customers interact with your Shopify website
- Pre-built flows such as cart abandonment, specifically created for Shopify.
- Thousands of Shopify customers have already activated the Klaviyo integration, so the Klaviyo team know how to support a wide variety of Shopify users
How can we make different customer profiles in Klaviyo and why’s that important?
Klaviyo maintains a complete record of contact for each person in your account. This means that we create and maintain a single profile for each and every one of your contacts. They’re used to keep track of all the information about customers and prospects, including what they've done (through events or metrics) and general data about them (through profile properties).
This is important because it avoids duplication and all the profile data is centralised in one place. This is the centrepiece for personalisation at scale, where through automation you can accurately engage customers with similar preferences or behaviours.
We are talking a lot about LTV (Lifetime value), which is one of the Commerce trends this year. How we can improve our LTV with Klaviyo?
Klaviyo tracks customers' past purchases as well as predicts their future purchase behaviours. This is done through our predictive analytics feature, where Klaviyo applies a combination of data science and machine learning techniques to all of the data in your account to bring you useful and actionable insights.
On each profile, you’ll be able Klaviyo gives CLV (customer lifetime value) data:
Historic CLV: The total value of all previous orders an individual has made, taking into account any refunds and returns.
Predictive CLV: prediction of how much money a particular customer will spend in the next year.
Total CLV: The sum of historic CLV and predicted CLV.
This can be a powerful tool to use in segmentation. CLV segments allow you to group customers based on this amount so that you can send them relevant content and trigger segment-based flows.
Let's say your average order value for customers is around $15. You may want to target customers who are unlikely to reach this average order value with discounts to push them toward their next purchase.
To accomplish this, create a segment of customers who are predicted to spend no more than $5 and target them with a discount campaign or flow — similar to a winback or re-engagement campaign. When targeting via email, you will want to include the following conditions:
- They belong to your main email list (in this case, a newsletter list)
- They have opened an email in a given amount of time to ensure that you send to engaged subscribers (in the example below, the timeline is the last 90 days)
What you can see, what are the marketing automation trends in 2023?
Businesses that leverage personalized messaging across the whole customer journey will see higher sales. That’s why it’s important to have a system that connects with them easily and has email, SMS and push notifications as the vehicle.
Summary
Overall, personalization is a powerful tool for eCommerce businesses, and Klaviyo is a great platform for achieving it. By using Klaviyo to segment your audience, use dynamic content, trigger emails, display personalized recommendations and offer discounts to customers, you can create a personalized experience that will drive conversions and build stronger relationships with your customers.
Contact us, we will help you grow sustainably and profitably - with the customer at the center.
