Klaviyo's NEW Pricing Model: Everything You Need to Know to Save Costs

0:01okay so clavio has some new billing um so I want to go over that quickly in this video this starts February 18th AKA for me tomorrow um so trying to get this video out as soon as I can so new clavio billing let's go over it so I just received this email from the clavo team updates clavio pricing um if you want you can read all this but I've kind of broken it all down for you but this is directly from the clavio team essentially there are a couple main things that are changing um so I'm going to bring break this down for you again you can review this account if you want

0:33to uh that email if you want to but effective February 18th they're changing how the billing profile billing Works you're now build based on total active profiles not just the amount of profiles that you email so um before if we take a look at this example you could have only sent so there are 88,000 so there are 165,000 total profiles 88,000 active 76,000 suppressed in the past you could have sent to only 40 ,000 of the 88,000 active profiles in your account and you could have your billing plan be at the 40,000 emails and you're not going to be charged for 88,000 now you have 88,000

1:11active profiles even if you don't email them you're going to be build for all 88,000 so you're not buil on these unsuppressed or on these suppressed people so this makes it super super important to be suppressing these people there's also a 90-day unsuppressed profile jail this isn't a new rule but it becomes comes extremely relevant so once a profile is unsuppressed say you had a ton of suppressed people here you want to unsuppress them because it's about to be like Black Friday or you have a big sale or whatever you cannot suppress them again for 90 days if you unsuppress them you're going to have to pay for them for

1:48three months so be cautious when you're unsuppress your profiles they cannot be respress for 90 days okay so if you just want to like unsuppress people for just one email send and then suppress them again you're going to have to pay for 90 days so that's what's in play they're also automatic plan upgrades if your active profiles exceed your plan limit clavio will automatically upgrade your plan um no option to prevent this now there is I'll show you the email up at the top here but there's there's one thing that I'm unclear on just with automatic upgrades and downgrades which I'll explain to you in a second but um

2:25what it sounds like is that you're going to be automatically upgraded if you go over but they give you an option for automatic downgrade so if you unsuppress pe or if you suppress people you can aut your plan will automatically be downgraded but this is not enabled by default tricky clavio here Tricky Tricky Tricky you must manually turn on auto downgrade um in your billing preferences so this allows you to just automatically have a lower plan so obviously we want to have that checked um and then there's also billing increase cap so first month upgrades are capped at 25% um so if you if you're like uh new sending price is

3:10double what you're currently playing paying the first month is going to be capped at 25% so you don't pay double that first month um however if your profile count stays high you're going to have later profile later upgrades in later months so okay so I just explained everything um little bit confusing um but these are the action items that you need to follow in order to to save on your costs so action item first one enable auto downgrade go to billing preferences and turn on auto downgrade to reduce costs where you're eligible um this isn't going to show up until February 18th um but we want to make

3:43sure that we have Auto downgrade um selected and then we want to have a task for having recurring suppression so to suppress your profiles to save you money so schedule a profile suppression before each billing cycle so if your billing is February 8 if your billing is the 18th of every month then on the 17th or 16th of every month just have a task in your calendar to suppress profiles um and I'll I'm giving you the segments to suppress um but we want to keep our profile count as low as possible we need to be updating this every single month um to make sure that we are unsuppress

4:20as many people as possible so make it a routine again you are not build on your suppressed profiles so we want to suppress as many people as we can um without impacting results so these are the segments that we want for recurring suppression they're four right here um use these um again this doc will be in the description for you um but this is one for never active profiles so if somebody's received an email 20 times um they just haven't interacted at all then they probably is like a fake email or something let's suppress those people bounces so if we have a hard bounce um or somebody has a soft bounce three

4:54times we want to suppress those people anybody who's marked as spam and then long-term inactive so anybody who hasn't been engaged kind of in like 180 days to um a year and a half so we want to suppress these people and you could change this if you want to a tighter time frame you could change this to half a year 180 days all of these um which I don't mind at all this is just like pretty loose see see how many people there are on your list and hopefully um then you can extend that if you want so that's literally it I know it's kind of

5:26it can seem kind of confusing but at the end of the day what they're doing is you're just build now on your active profiles um rather than how many people you send to um so let me just briefly go over this um just to show what clavio says about this what's changing profile compliance your plan needs to match your active profiles if you're over the limit your plan will automatically adjust flexible sending do you need to send more one month but not every month Flex lets you temporarily increase your sending limits and then go back to your normal plan or you could just downgrade your plan after rather than using this

5:57flexible sending feature I didn't talk about that in this doc just because I don't know how it looks cuz this is a new thing um but flexible setting then Auto downgrade uh well if your active profiles decrease will automatically lower you to a lower plan so you're not overpaying um how the compliance works of course if you have a 5k profile plan with 4K profiles you're good to go if you have a 5k profile P plan with 7K profiles not compliant of course um why do profiles matter okay so new billing options help you stay in control do nothing if you want to avoid extra cost you can cap your sending and stay

6:36within the plan Auto upgrade Auto upgrade rmps you up flexible sending new which I'm not fully sure how this will look temporary bump and sending limits for busy months then back to normal the next cycle so just like one month you can just say like hey I just want one month of this upgraded plan um and then Auto downgrade for profiles if your profile account drops will automatically move you to a lower plan okay so this is my source of Fusion now you can't enable both Auto upgrade and auto downgrade at the same time if you want more flexibility Flex setting is your best bet this is something that I'm going to

7:09have to see once I test this out once this comes out tomorrow but you can't have both Auto upgrade and auto downgrade but it says you can have this like that that to me is kind of confusing um I assume that you can have them both um but we're just going to have to check tomorrow tomorrow and I will update you guys on what this is like but hopefully this was helpful to you um and you kind of understand what they have going on um make sure that you're suppressing your profiles um every month make sure that it's set in stone and as long as you just have that

7:45as a recurring task you should be fine and you shouldn't be paying so much extra just make sure you're always cleaning your list so hopefully that was helpful let me know if you have any questions and I will get back to you