Maximizing Customer Lifetime Value with Klaviyo

April 8, 2024

Maximizing Customer Lifetime Value with Klaviyo

Maximizing Customer Lifetime Value (CLV) is a pivotal strategy for ecommerce brands aiming to thrive and sustain growth, but tracking and maximizing it can be difficult. Klaviyo has emerged as a transformative tool in maximizing customer lifetime value through email and SMS marketing, redefining the way brands communicate with and understand their customers. 

With its advanced segmentation, automation, and personalization, Klaviyo is revolutionizing lifecycle marketing, enabling brands to maintain and deepen customer relationships over time. 

This article delves into Klaviyo’s comprehensive suite, including the newly introduced features and real-world strategies for leveraging these features to nurture customer relationships, amplify lifetime value, and stay ahead in the ever-evolving ecommerce landscape.

Klaviyo CDP – Centralizing Customer Data for Personalized Engagement

Klaviyo’s Customer Data Platform (CDP) enables brands to efficiently gather, integrate, and store data from diverse sources on a large scale. Imagine it as a centralized hub where data from various touch points like website interactions, email engagements, SMS responses, and purchase histories across all platforms are seamlessly consolidated.

By consolidating so much important data, Klaviyo CDP creates a comprehensive, 360-degree view of each customer. This unified profile is a gold mine of insights, allowing brands to understand customer preferences, behaviors, and patterns like never before.

Not only does this streamlined, automatic data consolidation save time, but the CDP is instrumental in increasing CLV. 

A holistic view of the customer journey enables brands to craft targeted marketing strategies that resonate with individual preferences and behaviors. Whether segmenting audiences based on purchase history, customizing email campaigns to reflect browsing behavior, or triggering SMS notifications for cart abandonment, Klaviyo CDP enables brands to engage customers with effective retention strategies.

*The Klaviyo CDP is currently not included in your Klaviyo plan, so to unlock additional benefits and features, you’ll need to upgrade your plan.

Advanced Segmentation with Klaviyo AI

Klaviyo AI is setting a new standard for customer segmentation by harnessing the power of artificial intelligence to sift through vast amounts of customer data, automatically identifying and creating nuanced customer segments based on behavior, preferences, and purchase history. 

This level of advanced segmentation enables marketers to tailor their communication with precision, delivering highly personalized experiences that resonate with each customer. 

Whether you are new or an expert in audience building, Segmentation AI can help you establish a strong foundation for understanding and engaging with your customers. Personalized experiences make customers feel valued and understood, fostering loyalty and encouraging repeat business. They also make it more likely that they’ll make repeat purchases.

But Klaviyo AI goes beyond traditional segmentation methods by helping brands categorize customers into segments that reflect both their current behavior and predicted future actions. 

This allows for a more fluid and adaptive marketing approach, where communications are continuously optimized to match the evolving needs and interests of each segment.

From a strategic perspective, Segmentation AI can be leveraged to identify audiences at risk of churn. By harnessing Segmentation AI’s predictive analytics, Klaviyo allows brands to pinpoint these at-risk segments and develop targeted strategies aimed at re-engaging these customers. These strategies may include personalized offers, loyalty incentives, or tailored content that reignites their interest and increases their CLV.

Creating Winning Email Campaigns with AI Assistance

Creating email campaigns that capture attention and drive conversions has always been challenging, but Klaviyo AI is taking the work out of your hands. This groundbreaking feature has sweeping applications ranging from generating email content to suggesting ideal send times and optimizing subject lines.

These aren’t just predictive text suggestions; this is data-informed content. The Klaviyo AI assistant analyzes past engagement data to recommend topics and tones that have historically performed well, ensuring that each email is both relevant and compelling.

To maximize the impact of your email campaigns with Klaviyo AI, consider the following tips:

  • Embrace Personalization: Use Klaviyo’s AI-generated insights to personalize your emails beyond just including the recipient’s name. Tailor content to match individual preferences, purchase history, and behavior for truly personalized communication.
  • Test and Iterate: Take advantage of Klaviyo AI’s testing capabilities to experiment with different email elements. Continuously refine your approach based on AI feedback and performance metrics.
  • Integrate Visuals: Incorporate visually appealing elements suggested by Klaviyo AI, such as images or layouts that have historically increased engagement, to make your emails stand out.
  • Call to Action: Ensure every email has a clear, compelling call to action (CTA) informed by Klaviyo AI’s analysis of what drives conversions among your audience

Integrating AI not only streamlines content creation, saving valuable time, but also enhances the ability to target specific audience segments with personalized email content, which directly increases CLV. Moreover, using Klaviyo’s Segmentation AI allows brands to tailor the tone of each email for each specific segment, ensuring messages resonate with that specific audience segment. 

Through ongoing optimization and testing, additional insights into audience engagement can be uncovered, providing a deeper understanding of customer preferences and behaviors. With this knowledge and a well-planned strategy, brands can significantly improve client retention, driving an increase in CLV.

Personalizing Customer Journeys with Automated Flows

Klaviyo’s redesigned flows harness the power of data from your existing Klaviyo metrics, including AI segmentations, to automate personalized customer journeys. The ability to automate and personalize the customer journey has become indispensable for brands looking to maximize CLV.

Automated flows in Klaviyo enable marketers to set up sophisticated, data-driven email and SMS sequences that respond to specific customer behaviors or milestones. These flows ensure that each customer receives highly personalized content that is relevant to their unique journey with the brand. 

Some of Klaviyo’s automated flows that can be tailored and optimized for different segments include:

Welcome Series

The first interaction with a new subscriber sets the tone for the relationship. By leveraging Klaviyo’s segmentation capabilities, brands can significantly increase the relevance and effectiveness of the welcome series.

For example, brands can send more effective welcome emails by segmenting their email series by acquisition source. Email subscribers who sign up through a referral likely have a higher level of initial trust in the brand because it’s been endorsed by someone they already trust. The email series targeted at this segment can have more direct calls to action or incentives, capitalizing on their increased readiness to purchase.

Conversely, subscribers who come through a social media link might be at an earlier stage in their relationship with the brand and therefore need a different approach. Their email series might focus more on brand storytelling or highlighting what sets the brand or products apart.

By tailoring your Welcome Series according to the acquisition source, using Klaviyo’s advanced segmentation tools, you can ensure that each subscriber’s first experience with your brand is as relevant, compelling, and effective as possible, laying the groundwork for a lasting relationship.

Cart Abandonment Flows

Cart abandonment flows are crucial for recapturing potential lost sales. With Klaviyo, these flows can be segmented based on customer behavior and purchase history. 

For example, high-value customers who abandon a cart could receive a personalized email offering a one-on-one consultation or an exclusive discount, whereas first-time visitors might receive a different message emphasizing free shipping or customer testimonials.

Effectively managed, cart abandonment strategies can significantly boost CLV by offering opportunities for upselling or cross-selling items in their cart. This approach not only helps recover potential lost sales but also provides an opportunity to better understand customer behavior and optimize their shopping experience.

Post-Purchase Follow-Ups

Post-purchase flows can transform a one-time buyer into a repeat customer. By leveraging customer data, brands can send customized thank-you messages, product care tips, or cross-sell recommendations that complement the purchased item. 

For example, a fitness equipment company could send a series of follow-up emails providing workout tips, community engagement opportunities, and accessories that enhance the use of the purchased product, effectively encouraging further engagement and purchases.

Brands can significantly enhance CLV by leveraging Klaviyo’s automated flow and delivering timely, relevant, and personalized communication across different stages of the customer lifecycle.

Enhancing Engagement with SMS and Mobile Push Notifications

SMS and mobile push notifications are great for engaging customers beyond the inbox and getting your messages directly into their hands. Klaviyo’s advanced capabilities in these areas offer brands the opportunity to craft a comprehensive communication strategy that seamlessly integrates with email marketing efforts, creating a multi-touchpoint experience that captivates and converts.

SMS Notifications

Utilizing the same rich customer data that informs email campaigns, Klaviyo enables brands to send personalized text messages that resonate with the recipient’s preferences, behaviors, and purchase history. 

For instance, a high-end skincare brand launching a new product line could leverage Klaviyo’s segmentation capabilities to identify customers who have shown interest in similar products or ingredients in the past. With that information, the brand can craft and send targeted messages to customers who are more likely to purchase, driving sales and increasing CLV.

A series of personalized texts, complete with branded SMS short links leading to a curated landing page, could not only pique interest but streamline the path to purchase, leading to higher conversion rates.

Mobile Push Notifications

Klaviyo’s mobile push notifications further extend a brand’s reach, allowing for timely and relevant communication directly to the customer’s smartphone screen. Whether it’s announcing a flash sale, reminding customers of items left in their cart, or sharing exclusive sneak peeks, push notifications nudge your brand back to the top of their minds.

For example, an athletic apparel company could use Klaviyo to set up a push notification for app users who’ve recently viewed but not purchased a new line of running shoes. The notification, personalized based on the user’s color and size preferences, alerts them to a limited-time offer. 

This immediacy and relevance drive urgency, encouraging users to revisit their carts and complete the purchase.

The true power of Klaviyo’s SMS and mobile push notification capabilities lies in their integration within a unified communication strategy. 

By combining these instant, attention-grabbing channels with more in-depth and detailed email campaigns, businesses can create a holistic customer engagement journey that builds a meaningful relationship with the customer.

Utilizing A/B Testing and Analytics for Continuous Improvement

Klaviyo’s robust A/B testing capabilities, especially its feature that allows testing in recipients’ local time zones, combined with its comprehensive analytics, empower brands to optimize campaign performance continuously. 

A/B Testing in Local Time Zones

Understanding the importance of timing in email and SMS marketing, Klaviyo introduced A/B testing in recipients’ local time zones, revolutionizing how brands approach campaign optimization. 

This feature allows marketers to test not just content variations but also the impact of sending communications at different times so you can learn when customers are most likely to engage.

These deep dives into marketing campaign performance, customer behavior, and segmentation effectiveness allow brands to measure the impact of their A/B testing experiments accurately and understand the broader implications of their marketing strategies.

By understanding what works and what doesn’t, marketers can continuously refine their strategies to better align with customer preferences and behaviors.

As the digital marketing landscape continues to evolve, leveraging Klaviyo’s capabilities for continuous improvement will remain critical for brands looking to stay ahead and achieve long-term success.


In today’s rapidly evolving digital marketplace, the key to sustaining growth and securing competitive advantage lies in deepening customer relationships and maximizing CLV. As we’ve explored, Klaviyo presents itself not just as a solution but as a transformative force in achieving these goals. With its comprehensive suite of features, including the groundbreaking Klaviyo CDP and AI, Klaviyo empowers brands to deliver personalized, engaging customer experiences across multiple channels like never before.

Moreover, Klaviyo’s capabilities in A/B testing allow brands to refine their strategies based on real-time feedback and data-driven insights, ensuring their marketing efforts resonate with their audience and drive conversions.

Brands that embrace Klaviyo’s tools and integrate them into their marketing strategies can unlock new levels of personalization, efficiency, and effectiveness in their marketing efforts that not only improve customer engagement but also increase CLV.

About the Author: Eliza Spencer brings over a decade of experience in digital marketing to the table, with a background that spans from in-house roles to agency work, specializing in Paid Media and Lifecycle Marketing. As the Lead Lifecycle Marketing Strategist at adQuadrant, she’s dedicated to pushing the boundaries of Email and SMS marketing. Beyond her digital endeavors, you’ll find Eliza pouring her energy into her small businesses, enjoying quality time with her two Frenchies, and embracing new challenges like mastering golf or hitting the lanes for a game of bowling with her husband.

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