What is Klaviyo?
Klaviyo is one of the leading email marketing platforms, renowned for its ability to provide businesses with access to all the essential features for efficient digital marketing. It distinguishes itself by allowing seamless integration with various e-commerce platforms, simplifying the process of managing customer data, and automating personalized marketing campaigns.
In recent years, Klaviyo has established itself as a serious competitor in the email marketing automation industry. To add to its feats, Klaviyo is one of the top contenders for automated SMS and MMS campaigns. This should come as no surprise to the many businesses that have started to embrace text message marketing again and are seeing success.
With Klaviyo’s free plan having been praised as one of the best email marketing plans for beginners and small businesses, is the pricing right for your business?
Using Klaviyo’s Free Plan
The best part about using Klaviyo’s free email plan is that it instantly offers you access to all of Klaviyo’s features, even including all the advanced features — which you won’t find with many free plans.
That being said, the free plan is limited to accounts with 250 subscribers. In addition, you are restricted to 500 email sends per month. If you reach this limit before the month, your account will be locked, and you won’t be able to send any more emails. Be aware of this limit if you are using Klaviyo for all your emails (transactional emails, onboarding or welcome series, newsletters, etc.), those sends can add up quickly!
Klaviyo also offers a free SMS plan. However, the free SMS plan is not as expanded as its email counterpart with the plan limited to only 50 active contacts with no more than 150 SMS or 50 MMS credits. With this free plan you get access to all analytics and dashboard features to effectively monitor your SMS and MMS campaigns.
Now, using these SMS credits can be quite tricky. For example, in the US, sending one SMS to your subscribers costs only 1 credit. But, sending an email to the UK will cost you 5 credits. As a result, you can run out of credits quickly if you are not prudent with your SMS and MMS marketing strategy
Lastly, free plan users only get access to customer support via email.
Klaviyo Pricing & Plans
Klaviyo’s pricing structure cuts through all the noise and highlights only the aspects that truly matter to email marketers. There are no hidden charges or features that are locked behind paywalls.
In a way, Klaviyo does not penalize smaller businesses by restricting features that prevent the growth of their email marketing efforts. On the contrary, it offers everything a business needs to grow its subscriber count as it would mean their promotion through the different pricing tiers, indirectly raking in more cash for Klaviyo.
Here is an in-depth breakdown of Klaviyo’s pricing structure to help you increase your profits and reduce marketing costs.
What Are The Changes To Klaviyo’s Pricing Structure in 2024?
Klaviyo has revised its pricing structure to make itself more competitive in the market. To start, Klaviyo has announced that it would raise the prices for its top-tier customers.
This helps them generate higher revenue without affecting entry-level users. Next, Klaviyo has rolled back its unlimited email sends feature. Now, users can only send up to ten times the number of contacts they have in their account.
Changes to the SMS Message Credit System
The Klaviyo SMS pricing model has also changed significantly, with users being introduced to the new credit system. Now you can directly purchase SMS/MMS credits, providing flexibility and allowing you to pay for exactly what you use, rather than being tied to a flat fee structure.
At first, understanding the credit system might seem a bit daunting for new users. But, in reality, it is quite straightforward. So, how does the credit system work?
- Credit Purchase: Users buy a bundle of credits upfront. These credits are then used to send MMS and SMS messages. The more credits you buy at one time, the lower the cost per credit.
- Credit Usage: Each SMS or MMS sent from Klaviyo deducts a certain number of credits from your account balance. The number of credits used per message can vary based on location and message type
- Expiry and Rollover: You need to be aware of the terms related to credit expiry and rollover possibilities. Some plans may allow unused credits to roll over into the next billing cycle, while others might not. Klaviyo’s specific terms would clarify whether credits need to be used within a certain timeframe.
- Monitoring and Adding Credits: You can see how many credits you’ve used in your Klaviyo account overview. Just click your organization name in the lower-left corner then select ‘Billing’. In the SMS section, you can view your remaining credits and purchase more.
Finally, Klaviyo also announced the introduction of its new enterprise-level pricing tier called the Klaviyo One. The prices for Klaviyo One are yet to be confirmed.
Klaviyo Pricing Tiers
Klaviyo has the simplest pricing structure of all the email marketing automation platforms. Unlike its competitors, it does not overwhelm prospects with different tiers and sub-tiers. Klaviyo’s pricing structure is divided into 3 plan options for every subscriber tier: Free, Email, and Email and SMS.
Email Marketing Solution
The paid plan starts to take effect the moment the subscriber count crosses the free plan threshold of 250 contacts. This level is for businesses with 251-500 subscribers and starts at only $20 per month.
The prices then gradually increase at intervals of 500 active contacts. With 10,000 subscribers costing around $150 per month, and at the uppermost limit of 150,000 subscribers, Klaviyo costs around $1955 per month. Beyond this subscriber count you hit enterprise level, and you need to contact Klaviyo customer support to get a custom quote.
This breakdown of subscriber count pricing enables businesses to fine-tune their email marketing strategy and maximize their ROI. You can check out their official Pricing Page to go through the various subscriber levels and the price you will have to pay for managing them.
Email and SMS Messages
The Email and SMS plan offers more features than it suggests. In this plan, you get all the features of the email along with all the functionalities required for setting up an SMS marketing campaign.
This plan is great for companies looking for a comprehensive solution for their multichannel marketing roadblocks.
The prices for this plan are just slightly more than the email version.
For example, to handle 10,000 subscribers, you will pay $165 per month instead of your usual $150.
With this, you get 1,250 SMS and MMS credits with the option to bundle more for an added fee. But, these credits do not carry over to the next month so you should have an SMS marketing plan in place before deciding to increase your monthly credits.
One of the big perks of this plan is users get priority customer support over email, chat, and live telephone calls. Klaviyo also assigns customer success managers and onboarding specialists to keep the experience as seamless as possible. For businesses new to using an email marketing platform or those worried about a large migration into Klaviyo, this will be key to your success.
Other Klaviyo Products for Businesses
Klaviyo CDP
A Customer Data Platform or CDP is a central location to store, manage, analyze, and activate customer data from different sources. This feature is available to all users on a paid plan starting at $500/100k profiles.
Klaviyo’s CDP is not just a data repository; it’s a powerful tool that enhances the effectiveness of marketing campaigns through better data management, real-time processing, advanced analytics, and seamless integration with your different marketing channels.
Klaviyo Reviews
Reviews are a huge part of every e-commerce business’s strategy, and now collecting them is easier than ever. Send review requests to customers with confirmed deliveries, easily add top reviews to emails, and more. This is only available for Shopify and Shopify Plus businesses, with pricing starting at $25/month for 250 orders.
Does Klaviyo Offer AI?
Klaviyo recently introduced Klaviyo AI, an advanced suite of AI-powered marketing tools designed to enhance digital marketing across various channels. This launch represents significant growth in Klaviyo’s capabilities, as they join the tide of tech giants integrating AI into their products.
While the exact pricing for Klaviyo AI is not publicly available yet, it will likely follow a pricing model where costs are aligned with the scale of usage and specific services.
Some of the exciting features that will be part of Klaviyo’s AI are:
- Segments AI: This feature can quickly generate complex customer segments based on simple prompts, helping you target your communications more effectively.
- Email AI: This will assist you in creating high-performing email content tailored to specific campaign goals, streamlining content creation significantly.
- Forms AI: This tool optimizes web forms for conversions by testing multiple variations to determine the most effective setup.
If you are interested in trying out Klaviyo AI, you can check out more on their official page. At the moment, it looks like it will be available for Klaviyo One plan users (enterprise level). Fingers crossed, it makes its way into all the plans soon!
Can You Get A Discount On Klaviyo Pricing Plans?
Unfortunately, there are no discount codes offered by Klaviyo. All users have to pay the same price, regardless of the size or industry they are from.
However, you can opt for custom plans and get more manageable prices if your contact count is increasing over 150,000.
How to Reduce Your Klaviyo Costs
To optimize and potentially reduce your costs on Klaviyo, businesses can do a few things.
First, regularly clean your subscriber lists to remove unengaged contacts. As a best practice, you should actively clean your lists every six months. No one wants to pay for a subscriber who hasn’t engaged in years.
Next, fully utilize all the built-in analytics tools Klaviyo provides. These tools will allow you to target and retarget campaigns more effectively, choose experiments to run, and give you deep insights into customers and predicted churn rates.
Lastly, if you have SMS credits, plan the usage carefully to avoid purchasing more credits than necessary.
Is Klaviyo Worth It In 2024?
As we’ve covered, Klaviyo is there to help its users make the right decisions without overwhelming you. Its robust features, scalability, and integration capabilities make it a serious contender for beginner and seasoned marketers alike.
Most Kalviyo experts praise it for its simplicity and accessibility. However, just because the plans are easy to navigate does not mean they are not expensive at higher tiers.
Before taking the plunge, you must do your due diligence to determine whether Kalviyo will work for your business.
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