Klaviyo is one of the most popular email marketing platforms for eCommerce businesses, offering a range of features to help brands grow through personalised communication. But before diving into Klaviyo’s advanced tools and integrations, it’s essential to understand the costs involved. Whether you’re a small startup or an established enterprise, knowing how Klaviyo pricing works can help you budget effectively and maximise your return on investment (ROI). In this article, we’ll explore the various costs associated with using Klaviyo, how klaviyo pricing is calculated, and tips to get the most out of your subscription.

What is Klaviyo?

Klaviyo is a powerful email and SMS marketing platform designed to help businesses build personalised experiences for their customers. Its strong suit is the integration with eCommerce platforms like Shopify, Magento, and WooCommerce, allowing brands to automate targeted emails based on customer behaviour. Klaviyo’ sms platform goes beyond basic email marketing by offering advanced segmentation, dynamic content, and detailed analytics, which help businesses boost sales and improve customer engagement.

Overview of Klaviyo’s Pricing Model

Klaviyo’s pricing model is relatively straightforward but can become more complex as your business grows. The cost is based on the number of active contacts (email subscribers) in your klaviyo account. Additionally, Klaviyo offers a free account for both email and SMS marketing services, each with its own pricing structure.

The klaviyo platform has a free tier and a paid tier, with the cost increasing as the number of contacts or SMS messages grows. Here’s a breakdown of pricing details for the key components of Klaviyo’s pricing model:

1. Free Tier

Klaviyo offers a free plan for businesses with up to 250 email contacts and 500 email sends. This is paid plan also includes access to almost all klaviyo’s features, making it an attractive option for small businesses just starting out. However, it is limited in terms of the number of subscribers and email sends.

2. Paid Email Marketing Plans

Once you exceed 250 contacts, you’ll need to switch to a paid plan. The cost of Klaviyo’s paid plans depends on how many active contacts you have. For instance, a one business owner with 500 contacts might pay less than one with 10,000 contacts. Klaviyo’s email pricing plans now starts at approximately £20 per month for 251 to 500 contacts and increases incrementally as your list grows.

3. SMS Marketing Plans

In addition to its email marketing software, Klaviyo offers SMS marketing, which is priced separately. SMS pricing is based on the number of SMS credits you use, which vary depending on the region you are sending messages to. In the UK, for example, SMS rates might differ from those in the US or Australia. The starting rate is typically around £0.01 to £0.03 per SMS, but again, this can vary based on volume and location.

4. Add-ons and Integrations

Klaviyo integrates seamlessly with various eCommerce platforms, but some advanced integrations or additional features may come with added costs. For example, if you’re using a third-party app to sync customer data, or manage customer relationships, you might need to factor in additional costs for these integrations.

How is Klaviyo Pricing Calculated?

Klaviyo’s pricing is calculated based on the number of active email contacts or SMS subscribers you have. An active contact is someone who has received at least one email from you within a given billing cycle. Here’s how it works:

1. Email Subscribers

Klaviyo charges based on the total number of unique email contacts in your account. This includes anyone who your account is subscribed, whether they are part of an email campaign or automated workflow. As your list grows, so will your monthly cost. However, one advantage of Klaviyo is that it offers unlimited email sends, meaning you won’t pay extra based on how often you send emails, only the pricing based on the size of your contact list.

2. SMS Subscribers

SMS pricing is handled separately from email. You pay for each text message you send, and the cost per message varies depending on the region and the number of messages sent. For instance, the cost to send a message in the UK may be different from additional cost of sending one in the US. Klaviyo also allows businesses to have paid plans and purchase SMS credits in advance, which can help manage costs more effectively.

3. Combining Email and SMS

Klaviyo allows businesses to use both email and SMS as marketing strategies, without additional cost and offering the flexibility to engage customers through multiple channels. However, this means you’ll need to track both costs separately. Some businesses opt to focus on one channel first (usually email) before adding SMS as their customer base grows.

Key Factors That Influence Klaviyo Costs

Several factors can affect how much you pay for Klaviyo each month. Understanding these variables can help you make more informed decisions and potentially reduce costs over time.

1. Number of Active Contacts

The primary driver of your Klaviyo email support costs is the size of your email list. As your list grows, your monthly fee increases. Regularly cleaning your list to remove inactive subscribers can help reduce your email support costs and improve your email marketing performance.

2. SMS Usage

SMS marketing can add up quickly if you’re sending frequent text messages. It’s important to monitor your usage and decide how often you want to communicate with customers via SMS to manage costs effectively.

3. Integrations and Features

Some businesses may require additional features or integrations that come with added costs. For example, using advanced reporting, segmentation tools or custom data analytics might incur extra fees, so it’s important to evaluate which features you truly need.

4. Region-Specific Pricing

Klaviyo’s the pricing structure for SMS varies depending on the region you’re sending messages to. Be aware of these costs if you’re targeting customers across different countries, as sending SMS in one region might be more expensive than in others.

How to Get the Most Out of Klaviyo and Manage Costs

Klaviyo offers many features that can help you achieve a high ROI if used correctly. Here are some tips to maximise your investment while keeping costs under control:

1. Regularly Clean Your Email List

Make sure you’re using active profiles not paying for inactive contacts. By using active profiles, regularly cleaning your list and removing subscribers who haven’t engaged in a long time, you can keep your contact count—and costs—under control.

2. Focus on Segmentation

Use Klaviyo’s powerful segmentation tools to target specific groups of customers with relevant content. This can improve open rates and engagement with targeted messages, reducing the need to send frequent, broad emails to your entire list, which might be less effective.

3. Leverage Automation

Klaviyo offers automation workflows that allow you to engage with customers at the right time without manual effort. Automated emails such as abandoned cart reminders, welcome series, and post-purchase follow-ups can drive sales without needing to constantly create new email campaigns, making your email marketing strategy more efficient and cost-effective.

4. Monitor SMS Usage

SMS marketing is a great way to reach customers, but it can get expensive if not managed carefully. Be selective about when and why you send SMS messages, focusing on high-impact moments like flash sales or important updates.

5. Use the Free Tier for Small Lists

If you’re a business just starting out or have a small email list, take advantage of Klaviyo’s free plan. It offers many of the same features as the paid version and can be a great way to build your list without incurring costs.

What Are SMS Messages?

SMS, commonly referred to as text messaging, is a method of sending short, simple messages (up to 160 characters message length) directly to a mobile phone. Unlike emails or social media posts, SMS messages are delivered directly to a user’s inbox, making them highly visible and more likely to be opened.

Businesses use SMS messaging for various purposes, from transactional alerts (such as delivery updates) to marketing campaigns (such as promotions and discounts). Because SMS is direct, immediate, and personal, it has become a highly effective way for businesses to communicate with their customers.

Types of SMS Messages for Businesses

Businesses use SMS marketing in various ways, depending on their goals and customer needs. Below are some of the most common types of SMS messages:

1. Promotional Messages

These messages are used to promote sales, special offers, discount codes, or discounts. For example, a clothing brand might send an SMS promoting a weekend sale, encouraging customers to take advantage of a limited-time offer.

2. Transactional Messages

Transactional SMS messages are sent to confirm transactions or provide important updates. Examples include order confirmations, shipping notifications, and appointment reminders. These messages are crucial for keeping customers informed and improving the business owner needs overall customer experience.

3. SMS for Customer Engagement

Some businesses use SMS messages to engage customers more actively by sending surveys, requesting feedback, or offering loyalty rewards. By encouraging interaction, you can build stronger relationships with your customers and gather valuable insights.

4. Time-Sensitive Alerts

Time-sensitive alerts, such as event reminders or last-minute deals, are another common use for SMS. These messages are highly effective because they reach customers at the right time and prompt immediate action.

Why Choose Klaviyo?

Klaviyo stands out from other marketing platforms for several reasons. It combines both email and SMS marketing into one platform, making it easy to manage all customer communication from a single dashboard. Plus, its ability to integrate with e-commerce platforms like Shopify, WooCommerce, and Magento allows businesses to leverage customer data for targeted, personalised marketing campaigns.

Optimising Your Klaviyo Account for Success

1. Personalisation Is Key

Personalisation is one of the most effective ways to boost engagement in your email and SMS campaigns. Klaviyo allows you to use dynamic content, such as the customer’s name, previous purchases, or browsing history, to create tailored messages. For example, you can send personalised product recommendations or exclusive offers based on a customer’s past interactions with your store.

2. A/B Testing for Continuous Improvement

To maximise the effectiveness of your email campaigns however, it’s essential to experiment with different approaches. Klaviyo’s free A/B testing feature allows you to test variations of your emails and SMS messages, such as subject lines, content, or sending times. By comparing the performance of different versions, you can optimise your campaigns for better results.

3. Use SMS for Urgent Messages

While email is great for detailed, longer-form communication, SMS is perfect for time-sensitive or urgent messages. Use SMS to send flash sales, limited-time offers, or important updates directly to your customers’ phones. Because SMS messages are usually opened within minutes of being received, they can prompt immediate action from your audience.

4. Leverage Klaviyo’s Integrations

Klaviyo integrates with numerous third-party marketing tools, that can help you enhance your marketing efforts. For example, you can connect Klaviyo with:

• Facebook and Instagram Ads – to create lookalike audiences based on your email list
• Shopify – to track customer behaviour and automate abandoned cart emails
• Google Analytics – for deeper insights into customer behaviour and conversions

These integrations allow you to build a cohesive marketing strategy across multiple channels.

5. Keep Your Contact List Clean

Maintaining a clean contact list is essential for the success of your email and SMS campaigns. Regularly review requests remove inactive or unengaged subscribers to improve your deliverability customer retention rates and ensure that your messages are reaching the right people.

Klaviyo offers a robust email and SMS marketing platform designed specifically for eCommerce businesses, but it’s important to understand the costs involved. Pricing is based primarily on the size and number of contacts in your contact list and how many SMS messages you send. For small businesses, Klaviyo’s free plan is a great way to get started, but as your business grows, it’s essential to manage your contacts and marketing efforts to keep costs in check. By focusing on segmentation, automation, and list management, you can maximise your return on investment while using Klaviyo.

FAQs

1. What is Klaviyo’s free plan?
   Klaviyo offers a free plan for businesses with up to 250 email contacts and 500 email sends. It’s an excellent option for small businesses looking to start email marketing.
2. How is Klaviyo’s pricing calculated?
   Klaviyo’s pricing is based on the number of active email contacts and SMS subscribers in your account. Costs increase as your contact list grows.
3. Does Klaviyo offer SMS marketing?
   Yes, Klaviyo offers SMS marketing as a separate service. Pricing is based on the number of SMS messages sent and can vary by region.
4. Can I reduce Klaviyo costs?
   You can reduce Klaviyo costs by regularly cleaning your email list, monitoring SMS usage, and using automation to improve efficiency.
5. Is Klaviyo worth the cost for small businesses?
   Yes, Klaviyo’s free plan and advanced features make it a valuable tool for small businesses, offering powerful marketing automation and segmentation to boost customer engagement and sales.

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