Email marketing has become a staple for today’s fastest growing marketing campaigns. It is one of the most impactful ways to connect with your customers, share company updates and overall keep your audience informed on your business practices and sales. Yet, as the digital realm blossoms with fierce competitors, the art of measuring the triumphs of your email marketing endeavours and embracing vital data-driven choices to enhance your campaigns becomes even more crucial to your success.
Klaviyo is one of the more popular email marketing platforms used by businesses of all sizes. With its direct connection capabilities to Shopify and vast analytical capabilities, which provide valuable insights into the performance of your email campaigns, it's no wonder that over 100,000+ businesses choose to use it to launch their email campaigns.
“The great thing about Klaviyo is that it lets you know the benchmark metrics of your median peers so that you can keep on top of this and compare how well you are doing in your industry.” Naomie - Email Marketing Lead @ Shoelace
We use and recommend Klaviyo to all of our clients whenever we can because of how in-depth the analytics are and today we'll dive into exactly how it can help you measure the success of your email marketing campaigns. We’ll also show and discuss the key metrics you should track and how to use this data to set benchmarks for your future campaigns.
Finally, we'll explore some tips to optimize your currently running campaigns as well as drive your future endeavours. So let’s jump into it!
Understanding Klaviyo Analytics
To understand how to use Klaviyo Analytics to measure email marketing success it's important to have a good understanding of the tool itself. We discussed in great detail why you should be using email marketing within your campaign strategy in a previous blog, and also discussed how you can easily create a successful campaign. So today we're going to go more in depth about the data that is provided to you when you use Klaviyo Analytics.
One of the key features of Klaviyo Analytics is the ability to set a peer benchmark group to be able to track and measure various metrics against companies similar to yours. If no peer group is set, Klaviyo will automatically compare your data to that of similar companies within your industry. Some of the metrics you can track include:
- Open rates: The percentage of recipients who opened your email.
- Click-through rates (CTRs): The percentage of recipients who clicked on a link within your email.
- Conversion rates: The percentage of recipients who completed a desired action after clicking on a link within your email.
- Revenue generated: The total revenue generated from your email campaigns.
- List growth: The number of new subscribers added to your email list.
- Subscriber retention: The percentage of subscribers who remain on your list after receiving an email.
Klaviyo Analytics also allows you to segment your data based on various criteria, such as location, demographics, purchase history, and more. This segmentation helps you analyze your data more effectively and make more informed decisions about your email marketing campaigns.
Here are some performance metrics at a glance:
There’s a lot of data to look at within Klaviyo and it can be a challenge for you to decipher what data to grasp onto, so we asked our in-house Email Marketing Lead, Naomie “How do you prioritize and interpret the different metrics provided by Klaviyo Analytics?” and she had this to say…
“The success of each metric will vary per campaign, but ideally, as a brand, you would want to average at a number that is close to or above your peers. A steady open rate lets you know that your audience is engaged; however, a good click rate is important to let you know that your content is valuable.“ Naomie, Email Marketing Lead @ Shoelace
Not only are you provided a comprehensive view of your email marketing efforts, but Klaviyo’s data encompasses metrics beyond CLV, and uses predictive tools to identify the likelihood of churn. Their analytics can actually even predict the gender of your customers.
Below is a predictive analytical sample:
There are many facets of Klaviyo Analytics to explore and Klaviyo even provides comprehensive guides in their academy, where you can learn to achieve mastery over your analytical data.
With the overall view of your email marketing performance at hand, you can identify areas of strength or weakness in your campaigns and make comparisons within your industry. Then using that data to optimize your strategies will help you to achieve success.
Measuring Email Marketing Success with Klaviyo Analytics
It's crucial to measure the effectiveness of your email marketing campaigns in order to improve them. We’ve been talking a lot about the data that is provided to you but what about actually determining success? There are a number of ways to measure your email campaign performance, so here are some of the few we’ve discovered resonated the best with our own clients:
Setting Benchmarks & Goals
Before you can measure the success of your email marketing campaigns, you need to establish benchmarks and goals. This means defining what success looks like for your business and setting targets for your email campaigns.
“Using Klaviyo Analytics, we are able to do a deep dive into how well our campaigns are being received. We can further analyze what CTAs performed well against the templates that received the most interaction. This allows us to set benchmarks by using our findings in future emails and implying any improvement to enable growth.” Naomie, Email Marketing Lead @ Shoelace
Tracking Relevant Metrics
Start by tracking click-through Rate (CTR), Open Rate, Bounce Rate, and Unsubscribe Rate. Klaviyo offers the ability to see both your Top Performing Metrics and your Bottom Performing Metrics. It’s a great way to be able to immediately see where you are underperforming and work on those areas first.
Maintaining Good Email Deliverability
Email deliverability actually relies on both “Email Delivery” and “Email Deliverability”, which are two sides of the same coin.
Email delivery refers to the process of successfully sending an email from the sender's email server to the recipient's email server. In other words, it focuses on whether the email was physically handed off to the recipient's server without encountering any technical issues or errors. A successful delivery means that the email has been accepted by the recipient's email server.
On the other hand, email deliverability goes beyond the mere act of sending an email and encompasses the overall ability of an email to reach the intended recipient's inbox and be seen by them. It takes into account factors such as the email content, sender reputation, email authentication protocols, anti-spam filters, and recipient engagement.
Maintaining Good email deliverability could be a whole blog post on its own, but in short achieving “good” deliverability can be obtained by sending emails regularly, creating new lists, cleansing your lists regularly, and keeping unsubscribe rates low.
Email list growth & CLV (Customer Lifetime Value)
Growing your email list and retaining subscribers is fundamentally a great indicator of success that also contributes to maintaining good email deliverability. However you also should be factoring in Customer Lifetime Value. Using Klaviyo Analytics predictive tools, you can visually see how much revenue a customer will generate over the course of their relationship with your business. With that knowledge, you can then create segmented lists based on the highest predicted CLV customers, and create campaigns around those higher value customers.
4 Optimization Tips To Help Boost Your Next Email Campaign
Optimizations should be made regularly on your campaigns to ensure their quality and maintain a level of effectiveness against your competition. Some of the best advice is to:
Tip 1: Using A/B testing
A/B testing is a powerful tool to optimize your email campaigns. Run A/B tests on various elements of your email campaigns, such as subject lines, email content, and CTAs. By testing different variables, you can determine what resonates best with your audiences. We recommend testing one variable at a time to determine exactly what it is that is working for a particular audience or list.
Tip 2: Email List Segmentation
We already discussed creating a curated list of higher value customers to send specific email campaigns, and using Klaviyo’s Predictive CLV to create those lists, but you can also divide your audience lists into segments based on customer behaviour, preferences, and purchase history - try a combination of these to get the most effective list of engaged users.
Tip 3: Responsive Design and CSS
Making sure your emails look good on both desktop & mobile is essential. And if you know anything about web design, you’ll recognize CSS or Cascading Style Sheets. Klaviyo actually uses embedded CSS to help deliver your emails. From the Styles and Block tabs, you can select your font, images, colours, etc and Klayio automatically scales the content so you have the smallest file size email possible. This will help improve your email load times and overall deliverability. And don’t forget about designing for dark mode!
Tip 4: Identifying Trends and Patterns
Reading the data can help identify patterns in customer behaviour, such as when they're most likely to engage with your emails. This information can help you optimize the timing and frequency of your email campaigns to maximize engagement and drive better results.
You can actually see both your top performing metrics as well as your bottom performing metrics. Knowing your bottom metrics should be your starting point for your optimization efforts because they can be a great indicator of what needs to be addressed for your future campaigns.
Klaviyo Analytics In A Nutshell
Whether it's analyzing customer behaviour, running A/B tests, creating targeted campaigns, or identifying trends and patterns, Klaviyo provides the tools you need to make the best decisions that can improve the effectiveness of your email marketing efforts if you are able to properly read the data and optimize accordingly.
Klaviyo can offer your business everything it needs to launch a successful email marketing campaign. By learning to track certain metrics like revenue generated, email list growth, subscriber retention rates and CLV, you can get a comprehensive view of your email marketing performance and identify areas for improvement.
As always, our expert team of Growth Partners are here to help you! Whether that be with Klaviyo, Google, Facebook, or any other of your marketing efforts. We are here to help boost your next campaign with our in-depth knowledge of the wide world of ecommerce. Get in touch with us today to learn more about what we can achieve together!