# Klaviyo Email Marketing Segmentation Strategies For $10M+ Shopify Brands

Channel: Max Sturtevant
Video: https://www.youtube.com/watch?v=qPJyZ7-UpAM
Duration: 16 min
Language: English
Words: 3872
Transcript page: https://viewrankai.com/tools/youtube-transcript/qPJyZ7-UpAM

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[0:00] I've made $250 million by sending emails for brands, and this is the exact segmentation strategy that I use. There are a lot of ways that you can mess up your segmentation, whether it be sending a ton of emails to people who aren't interested and you trash your deliverability, or you don't get targeted enough and you just leave a ton of money on the table by not sending the right [music] emails to the right people, or you are just way too targeted with your segmentation and you leave a ton of revenue by not sending to enough people. [music] Either way, you probably fall into one of those three categories,

[0:25] and I'm going to help you dial that in. So, let's get straight into it. Now, before we get into the different segments that I use, let's understand the use cases of segmentation. Segmentation is essentially just splitting your list into different parts. So, then with your segments, you can send specific emails to those people

[0:39] based on what [music] they might need. The first reason we want to properly segment our list is for deliverability purposes. If we're sending emails to everybody on our list, we're going to be sending emails to people who aren't opening our emails, and it's going to destroy our open rates and click rates, and Gmail will look at that and send us to the spam inbox more often. So, we have to use proper segmentation to only send to people who are opening our emails. The second thing that you can do with segmentation is that you can get more sales by targeting people at the right time. Split your list into

[1:05] different sections and send them different offers depending on where they're at in the journey, or by hitting them with offers that hit home to them. Third, we are able to save money by using segmentation to identify people who are unengaged within our account, which we'll then be able to suppress their profile and save us money on our email bill. And fourth, we're just able to create a personalized experience for the customer by hitting them with information based on where they're at in the customer journey. Which this is going to build loyalty and then drive more repeat purchases. [music] So, those are some of the main use

[1:31] cases. Let's actually get into the different types of segments that you can use and the use cases for each one, as well as copy and paste segments that you can use. The first type of email segmentation is email engagement segmentation. This is the one that is the most important for your deliverability. A lot of people will just send emails to their whole entire email list and just blast out. But, let's think about it. If you send an email to 50,000 people and only 5,000 people open that email, what message does that send to inbox providers like Gmail and Yahoo? They're going to see, "Oh my goodness, this brand sends an

[2:03] email and only 10% of people open it. That's not a high percentage, so it's probably spam. So, we're going to send this brand to spam." No inbox provider is going to keep sending your emails in the main inbox if 90% of people don't want to receive those emails. [music] And that's why we need to segment all of our emails by email engagement. We want to create general engaged segments and only send to people who are engaged with our list. So, people who are opening emails or clicking emails. This way we can keep engagement high showing Gmail, Yahoo, and these other inbox providers that people like receiving our emails

[2:30] and we deserve to be in the main inbox. And so, let's create an engaged segment right here. So, I'm going to go into Klaviyo and I'm going to click segment right here. And the most standard engaged segment that we like to use is the engaged 90 days. [music] So, how we want to create this segment is we want to do somebody can receive email marketing. Somebody who can receive email marketing because they are

[2:49] subscribed and we have their consent. So, you see right here we have 505,000 people. Now, let's create the engaged portion of it. All that we want to do here is we want to say and so they can receive email marketing and what they've done, they have opened email at least once in the last 90 days. And that's what that engaged 90 days is. So, we can see we have 505,000 people who are subscribed, but 448,000 people who have received, but only 362,000 people total who have received an email in the past 90 days. And so, if we tried to send email to 505,000 people, then there's

[3:20] actually like 140,000 people in this list that aren't going to be opening our emails because 3 months is a long time. So, this is going to be our standard engaged segment that we send all of our email campaigns to. And so, if you want to keep things super simple, you could have this be your engaged list. You can also, depending on where you're at, you could extend this out to 120 days if you want. That's usually the widest I'd go for an engaged list. And some people even like to go even tighter with like engaged 30 days by changing this to something like 30 days. And we'll see

[3:47] that 360,000 drops to 310,000. But, for the sake of this, let's just go to the standard 90 days right here. Now, you could stop right here, and that's your engaged list, and that's fine. You could even take this engaged list a step further if you want to take it a step further. This is the simplest, but let's take it a step further. What I often like to do is I like to have this or feature, and then do something like what somebody has done, they've been active on site at least once in the past 90 days, or you could do the past 30 days, or something like that. So, this

[4:15] actually increases the segment to 445,000 people. But, these people could be unengaged. So, typically, if I'm doing some site activity, this is going to be anybody who's active on my website. They've gone to my website in the past 30 days. Maybe they're more likely to receive an email and open it. So, you know what? Let's extend this to also do active on site. That's something you can absolutely do. But, you have all

[4:35] sorts of possibilities that you can do. You could do clicked email, you could do all sorts of different stuff for email engagement, but I don't recommend going any more too crazy than this. I do somebody's open email at least once in the last 90 days, or somebody has subscribed to email marketing at least once in the last 30 days. And so, we also are getting people who just signed up to the email list. And this is a very good standard engaged email list. You can see for this brand right here, the campaigns that we're sending that are making a lot of money. Look at the who

[5:02] we're sending to, the engaged 90-day list, engaged 60-day list, engaged 90-day list. We're not doing some over complicated stuff, just sending to our engaged list. [music] And this helps maintain our deliverability by getting open rates that are around 50%. So, that's our first key segment is our engaged list. Now, let's go to the opposite, which is going to be our unengaged list, which these are people who are not interacting with us, and we probably do not want to be paying for them. So, for our unengaged list, we want to do something like this. We want to do somebody can receive email marketing, because that person is

[5:33] subscribed, and so we are paying for them. Then, we want to do this person, we want to set and what somebody has done, they have opened email zero times in the last 120 days. Unengaged is typically what 120 days is typically like a good standard. If somebody hasn't opened an email of yours in 120 days, they [music] might not come back. And so really the purpose of this list is to figure out who is not engaged and who can we remove from our list and save on our bill. So I do this, somebody's opened email zero times in the past 120 days, then I would do something as well

[6:02] just to be sure these aren't people who have recently signed up to email marketing cuz maybe they just haven't opened for the first time yet. I like to do something like subscribe to email marketing zero times in the last 30 days, so they've been on the list for at least 30 days. And also, I just want to exclude anybody who has ever placed an order with me because if somebody's placed an order with me, I want to still have them on my email list. I'm going to do placed order zero times over all time. And so this is a super simple unengaged list that we can use to

[6:30] suppress and save money on our Klaviyo bill. So I can create this segment and show you guys how I would suppress them. Okay, so once we create that segment, that's 74,000 people, you can just click right here. You can do suppress current members. If I click suppress, it's now going to suppress these people and they

[6:45] can no longer receive email marketing. And then what I could do is I could go into Klaviyo, I could go into my settings and downgrade my bill excluding the 74,000 profiles. And then boom, I just saved money. And then maybe your unengaged list, you want to send them an email once a month to try to engage them back, but I wouldn't go too crazy cuz I don't want to hurt my deliverability. So you can mess around with your engage segments as much as you want, but I recommend doing at least an engage segment of 90-day opens and mainly use that as your campaign sending list and

[7:13] then create an unengaged list just so you can track how many people are unengaged and be sure that you are suppressing those people every so often. Here's one last quick segment that you can use for like highly engaged for maybe like specific stuff. These are going to be people who are the most engaged on your email list. So we'd want to do someone can or cannot receive email marketing, they can because they're subscribed. And then I want to do something like this. I'm going to do somebody has opened email is at least five in the past 30 days. That's going to be our hyper hyper engaged segment

[7:42] right here. So, we're going to do that. Someone's opened email at least five in the last 60 days. We're going to say what somebody has done, they've or they've clicked an email at least once in the last 30 days. So, these are going to be our highest engaged folks right here. There's a lot more complicated stuff that you could do with this segment, but this is just super simple for me. Has somebody opened at least five emails from me or they've clicked an email in the past 30 days, these are

[8:03] going to be our highly engaged people. That's what I like to use for that segment. If you really just want to target people who are the highest engagers on your list. I actually have a document which shows you all the formulas for all of these links. If you want to click the link below in the description, you can have it for yourself. Now, the same way that Klaviyo can track emails based on who opens our emails, Klaviyo can also track how people are interacting with your store online. Because in the end, you want to send emails to people who are the most active on your website, like browsing an

[8:29] item or going to cart. The best way to do that is with store engagement segmentation. This is where you can divide up your list based on high-intent behavior. Let me show you how to set these up. So, I want to create a window shopping segment. Somebody who's been shopping around on our website, but they

[8:43] haven't actually placed an order. Because then, we could make sure that we add these people into our campaigns or we could send targeted stuff towards them every so often. So, I'm going to do window shopping right here. We're going to say somebody can receive email marketing because they are subscribed. And then, I'm going to do something like what somebody has done, they have viewed product at least once in the past 30 days or they have added to cart, added to cart at least once in the past 30 days, or they have checkout started at least once in the past 36 they've taken some sort of activity on the website,

[9:14] but they have placed an order zero times in the past 30 days. So, boom, right here, somebody has viewed product or added to cart or gone to checkout, but they have not placed an order. We have 29,000 people here who have been active on our website, but haven't placed an order. This is going to be our window shopping segment. This is one that you can absolutely add to all of your campaigns. Because [music] these are people who have shown interest on the website. And feel free to send a custom campaign here and there to these people

[9:39] because they are the most likely to buy. You could set extra parameters on this, but I think that this is just the best segment to use. Somebody who's been active on site, taken an action, but hasn't placed an order. Now, another easy segment to do based on your store behavior is going to be your VIP segment. And this is going to vary based on the brand a ton. So, for some brands, they view VIPs as people who have placed a ton of different orders, so they placed multiple different orders, but some people view their VIP segment as high spenders. So, somebody has super high AOV. Well, some people like to view

[10:08] it as the amount of money that they've spent at the store. So, it kind of depends on you and what how you view who your VIP customers are. My favorite just VIP segment is I think that a VIP is if somebody has placed an order is at least four overall time. That's what I use as a VIP, and this is my standard VIP segment right here. But, feel free to adjust this if you want. I just think that four is the best for me and most of my brands. And I kind of want to tie in our next type of segmentation here, which is going to be our predictive

[10:37] analytics segmentation. There's a ton of different segmentation that we can do with Klaviyo's predictive analytics, and I'm going to kind of show you how it aligns with like our VIP segments or our other segments right here, which are based on store activity. So, I'm going to go right here to this can or cannot receive email marketing because person is subscribed. And one of my favorite segments to do right here is we go to predictive analytics. We can go to total customer lifetime value. This could be another different variation of your VIP segment. If you want customer lifetime value is at least $1,000, then this is perfect. We're going to do something

[11:09] like this. For this brand, it has a lower AOV, so it might be a little bit less, but there's actually a good amount of people right here. So, that's a segment that you could use for your VIP segment if you want. Something as well that I like to do is the high roller segment, which this is going to be anybody whose average order value is whatever like your highest like what's a high AOV? For this brand, maybe it's $500. These are going to be people who are doing like big batch orders, whatever. AOV for this brand's like $50, and so I like to think of high rollers

[11:35] is like four to five times wherever the your AOV is, about four to five times. That's typically a high roller. So, for these people, you might want to hit them with offers that are maybe a little bit more on the bulk side, like spend $200 get $20 off. Whereas like other people who only spend like $50 AOV wouldn't buy off that. What's great about predictive analytics is you can do anything like predicted gender, historic number of

[11:58] orders, average days between orders. There's all sorts of fun stuff that you can do here if you want to. But, I want to highlight this within my doc, which again, you can get this in the description. Let's not get too complicated. So, I just went over like a lot of different segments. You can see I kind of like went a little bit fast through them. That's because I don't believe that you should go too crazy with your email segmentation. Yes, you could hyper segment your list by their favorite color and if their belly button is an innie or an outie. Yes, that would probably increase your conversion rate

[12:23] on those emails, but at what cost? send one to two targeted email campaigns per week to different groups of 10,000 people, so you really target things, and maybe you hit VIP customers with different stuff compared to people who spend low amounts of money, or would you rather send three to four broad email campaigns per week to 50,000 people? The latter, sending this more broad to 50,000 people, to a larger part of your

[12:47] list, is going to convert a lot better. So, I would suggest that you only use segmentation for like analytics-wise, and be like, "Oh, okay. Let me look at like how many people on my list actually spend have an AOV of above $100. Okay, that's about like 25% of people who have placed an order." That's what I like to use it for. And then my campaigns, I just want to do more general campaigns to a wider list. Here's an example of just like good segmentation, in my opinion. And then also an example of where you try to get targeted and it doesn't do anything. Okay, let's take a

[13:18] look at these email campaigns right here. You can see the performance and how much money that they're making. Now, let's take a look at the segmentation. Right here, the engaged subscribers, you can see this is the engaged list. This is what we like. You can see 44,000 people opened this. That's a good amount of people. And this email made 2.4 grand. And so this is what I like to do for most of my campaigns. You have the engaged subscribers right here, and that's all we really care about. But for some like big launches, like this was a product launch, what they've done here is added segmentations based on like

[13:47] winback eligible people. So they bought a while ago. I think that a lot of this is a bit overkill, but for stuff like big launches, you can add some of these segments of like past people who maybe they're a little bit maybe they're less engaged. And you can see that that dipped the open rates right here, but we got a few like 3.7 thousand extra people to open compared to like before where it was like 44,000. You can see that all this extra stuff just didn't do much for us. And then going back to the engaged list and then this right here. But what I do love is if you have any sort of

[14:16] product highlight, you can bake in this sort of segment right here. So you can see right here the viewed this product. Under the engaged subscribers, you can see the right under it, 120 days viewed this hydration product. Now what we could see right here is actually there's a second segment under the engaged subscribers says 120 day viewed this product. An email highlighting a new flavor of that product. So what we did here or what they did here was an email sent to the engaged list and then also added anybody who has viewed that product in the different flavor and then

[14:47] send that email to that wider list. That's where you can start layering on other segments. You can see there's another example right here, engaged subscribers and then the second segment right here is viewed that product. You can see it does quite well. So that's really the second layer that I would add. And you can do that right here by going into your segmentation. So all that you want to do here, if you want to create that like viewed a specific product, we want to do what somebody has done and then we can do viewed product right here. Look up viewed, let's go to viewed product at least once over all

[15:18] time. You can change this to whatever. I'd recommend like 365 days or 120 days. And then you want to add this filter and then we can actually filter by the product. So, you can look up product right here. You can find the product name and then find whatever product you want. So, let's say I wanted it to be whey protein isolate. Anybody who's viewed that product in the past 120

[15:38] days, you can see 236 people right here. And then I would create this segment and if I was creating an email about the whey protein isolate, then I would send to the engage list plus this segment. And that is the extent to which I would do email marketing segmentation. Now, you probably clicked on this video expecting something insanely complex, but hopefully that helped ease some of your mind and take some stress off of you. Just make sure you're only sending emails to your engaged list and just use that as your base campaign segment and then you can layer on specific like product interest sort of segments where

[16:08] you want or VIP sort of stuff here and there. But just rely on that engaged segment for most of your sends. Now, that's segmentation. That's just a small part of email marketing strategy. So, I want you to check out this next video which goes over a full strategy of email marketing and how to run everything inside of the account. So, I'll see you

[16:22] over there. Thanks for watching.

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