If you’re curious about Klaviyo’s predictive analytics, then you’re at the right spot.
In this article, I’ll be sharing everything related to this feature so you can avail its benefits.
Here’s what you will get:
- What is Klaviyo Predictive Analytics?
- It’s features and benefits.
- How do you leverage it in your e-commerce business?
- And, so on…
Imagine, having the supernatural power to predict the reaction of your girlfriend to a particular action of yours.
What If you already know, how’s your girlfriend going to react in a specific situation? Let’s say: When you propose to her, will she excitedly accept it or slap you hard?
Well, there’s no advanced tool that has the ability to predict the future perfectly.
However, there’s a way we can get closer to the future. That is, by analyzing past actions (earlier behavior),
For example, whether your girlfriend will accept your love or not depends on a variety of factors. But one she will surely consider is “your behavior with her.”
How have you been with her and what is your attitude towards her?
If it was pure from the bottom of hearts, then there are more chances she will accept your proposal. Hopefully!
“Analyzing past actions (earlier behavior) helps in predicting the most probable future.”
What is Predictive Analytics in Klaviyo?
“Predictive analytics is a way to predict when a customer is more likely to place his next order.”
How Predictive Analytics Works?
As you know, Klaviyo isn’t only limited to nurturing relationships with customers; it also helps in managing customers’ data and tracking their journey in your store.
Which means it keeps a record of every important action customers take on your e-commerce store, such as products they’re browsing or viewing, products in their cart, recent purchases, and so on.
And, later on, it analyzes this data (the past behavior of customers) to predict their future actions.
Think of it this way:
There’s a customer who is a painter. He regularly keeps ordering from your store but takes a gap of around 40–45 days. Maybe because the colors he orders take that long to finish.
Klaviyo identifies this pattern and uses it to predict – when he’s more likely to place his next order for colors.
Therefore, we can leverage these predictions to plan marketing campaigns or personalized offers to generate more sales and revenue.
Key Features
1. It helps in calculating CLV and churn risk.
2. Allows you to segment your audience based on predicted data.
3. With this, you can also get an idea of the most optimal time for sending emails or SMS.
4. Also, help in identifying the most ideal product for customers.
5. Easy to use and set up; only a few basic criteria are there that need to be fulfilled.
6. Helps in better customer understanding and improving relations with them.
7. Saves time Analyzing this much data manually and then giving predictions can be time-consuming as well as complex.
Benefits of Klaviyo Predictive Analytics
Let’s cover the benefits you can enjoy from it.
1. Helps in taking Data Driven Decision
There’s no vacancy left for intuition and guesses.
Klaviyo’s intelligence plays with all the data it has access to about customers’. And then, use machine learning as well as pattern-identifying techniques to provide you with the best possible path to take off.
With a comprehensive understanding of these predictive insights, companies can easily frame their next step to maximize their profitability.
In short, it helps in framing the right strategies that will generate more effective results.
2. You’ll get to understand more about your customers.
Obviously, you already had the customer’s data but with this feature, all that past data or customer’s behavior is now analyzed for our future use.
Just assume, Christmas is on the way and you’re planning to organize a campaign or a kind of offer to persuade your existing customers to buy something for their loved ones.
Well, that’s a fascinating thought.
However, for this to be accomplished, it’s required to figure out who qualifies as your most ideal customer from the entire list of subscribers.
So you can target the most relevant customers.
Here’s where Klaviyo’s predictive analysis comes into play.
It helps us identify who has a high chance of getting converted. But how’s that even possible?
Because it keeps track of the customer’s journey within your e-commerce store. Such as searching history, past purchases, their cart list, and much more.
For example, if someone is searching for something Christmas-related, this data is stored. Plus, it also has information about those customers who purchased something for Christmas last year.
Therefore, it plays with all that relevant data and, in the end, gives you the most ideal customer who can get converted, say, on Christmas.
3. Helps in Creating Personalised Campaign
Your customers can now feel that the offers you create are specially designed for them.
Using PE’s calculation, it is easier to find out those lucky charms whose chances of buying something are high.
When you get the list of those subscribers, create a new segment for them.
Once this is done,
Now it’s clear that all the people in this segment are interested in Christmas products.
Therefore, when Christmas is just about to arrive, you can plan a compelling Christmas deal to entertain these customers.
As they were already waiting for Christmas, when this kind of deal pops in front of their eyes, it becomes difficult to ignore.
Here’s what needs to be considered when planning your campaign.
- Relevancy
The product you’re promoting in this offer must be relevant to the audience and the festival.
4. Improves Customer Retention
As we know, Predictive Analytics keeps a record of the churn rate of every individual customer and analyses it from time to time.
From this analysed Churn Risk report, the business owner will get an idea of which are those customers who are neither responding nor buying anything.
Then, the marketing team can try to improve the relationship with those customers by using creative and personalised nurturing techniques to attract them.
Getting started with Klaviyo’s Predictive Analytics
Lets begin with the steps you can follow to begin with Klaviyo’s Prediction Feature:
- Creating Account
To try the perks of this tool, first, you have to log in to your Klaviyo account.
If you do not already have an account, please create a new one.
After that, connect your e-commerce store to it, which can be done easily by following some basic steps.
And now, when you’re done with this,
Just head to your Klaviyo’s dashboard
- Activating Predictive Analytic Feature
Click on the Analytic tab located on the left side bar.
Select the predictive analytic options from it and activate it.
Some instructions will appear in front of you; just follow them. These instructions will help you set up your basic configuration.
There are some key terms about which you should have an idea.
Key Terms to Know about
1. CLV
It stands for customer lifetime value.
Which signifies how much the customer has spent in his lifetime with respect to that store.
This includes all purchases, returns, and refunds.
By analyzing CLV, Klaviyo estimates how much the customer is likely to spend in the future.
2. Churn Risk
You can also call it the churn rate. It is inversely proportional to the number of times a customer places an order.
For example:
Whenever a customer places an order, his churn probability (rate) decreases accordingly. (turns green in color), which is a positive signal.
On the contrary, if the customer has not ordered anything for a long time, then his churn rate will go up. (turns red in color)
Which shows that the customer is not much interested in your products or services.
If you want, you can suppress such subscribers or try to woo them by running a re-engagement campaign.
3. Gender Prediction
It also predict the gender of customers ; Is it male or female?
for this Klaviyo analyses that customers order history and other relevant info which it has access of.
Klaviyo Predictive Analytic requirments
To use this feature, there are some basic criteria that need to be fulfilled. Here are those:
- Firstly, at least 500 customers should have placed an order. (500 Paying Customers)
- Secondly, it is necessary for e-commerce stores to be connected, such as Shopify, Magento, and Bigcommerce.
- Thirdly, the store should have at least 180 days of order history, and there should be some orders placed in the last 30 days.
- Additionally, there should be some customers who have placed orders three or more times.
Tips for using it effectively
If you are reading this article, then it is obvious that you have a good understanding of E-Commerce business.
Along with this, you will also have a basic understanding of how to play with data and how to use it in your business mechanism so that you can generate a good ROI.
With the help of this tool, a prediction chart of your customers will appear in front of you.
This will give you an idea of what is the time or what is the season or festival during which the chances of this person buying something are quite high.
So keeping these things in mind, you can send personalized promotional emails or SMS to all those people whose future overview you have derived with the help of klaviyo.
Always keep in mind that personalization and relevance play a major role in the success of any marketing campaign.
- Proper Segmentation —— As soon as you get an idea that these people are very interested in any particular season, product, or whatever, and if they get a good deal, then the chances of them buying are also very good. Then you create a separate segment for them and design promotional marketing campaigns accordingly.
- Customer’s Purchase and Browse History.
- Feedbacks, Reviews and Ratings given by them
- Their engagement on social media associated with your brand.
- Their behavior with the sales events, offers, and deals you organized.
- How often do they open and engage with the emails and SMS?
Also try to collect this type of info about your customer which will help you in planning the most personalised campaigns for them.
Links to some Helpful Resources
If you want to know more about what is Klaviyo Predictive Analytics then you can read this official article provided by them.
You might already know; how AI is empowering every industry in their growth and scalability. Here, klaviyo has provided so many helpful guides on how to leverage AI in ecommerce business. Better you go and have a look over them.
Frequently Asked Questions
