Klaviyo recently announced an automatic upgrade or downgrade for customers based on their “Active profiles” of subscribers. Some customers are pushed onto a bigger plan even though their list size stays the same, resulting in a big price bump.
What’s “Active profiles”?
An active profile in Klaviyo, is any profile/contact that can be emailed. There are two main categories:
1. Subscribers: Individuals who have filled out a signup form or given explicit consent to receive email marketing.
2. Profiles added by general engagement: Individuals who may have shared their email during interactions such as placing an order or abandoning a checkout, without explicitly opting in for ongoing marketing.
E-commerce platforms like Shopify and WooCommerce can add both types of active profiles to Klaviyo based on user actions.
This update follows Klaviyo’s pricing structure change on April 2, 2024, when they began charging customers based on the number of contacts in their list rather than their send volume, resulting in a significant price increase for customers with larger lists.
Klaviyo quick overview
Klaviyo is a popular marketing automation platform primarily focused on email and SMS marketing, designed to help e-commerce businesses that run on platforms like Shopify and Magento.
It has an easy-to-use drag-and-drop editor with templates, and supports A/B testing and detailed analytics to improve campaigns. Although Klaviyo is quite similar to other email marketing platforms, its strength lies in its seamless integration with e-commerce platforms like Shopify and Magento, providing in-depth insights into customer behaviour and the ability to use it for better campaign results.
Klaviyo price update
Starting February 18th, Klaviyo will enforce pricing based on “Active profiles” for legacy accounts. Businesses were previously charged primarily for emails, but this will change with the new automatic enforcement.
For existing customers, any increase will be capped at 25% until they decide to downgrade their plans. This will have a significant impact on subscription-based businesses that have large numbers of “Active profiles” within Klaviyo, but often email less frequently to avoid customer churn.
Additionally, businesses with slower purchase cycles that email their lists less frequently may be negatively affected, as their email needs each month are arguably lower.
How to reduce effect of Klaviyo’s pricing update
Here are two strategies to consider for cutting costs:
Clean your list
To keep costs low with Klaviyo, regularly clean your contact list by removing inactive profiles.
Identify profiles that haven’t engaged with your site in the past six months—whether through purchasing, visiting, or opening emails. Once identified, delete these profiles.
Also try to implement an automated system to manage future inactive profiles. For an efficient list management, establish suppression rules and manually delete inactive profiles every three months. This routine will help maintain the size and quality of your list.
Switch providers
Switching email providers can be an effective way to keep costs low.
While Klaviyo is a great tool, its pricing can sometimes outweigh its benefits, particularly for businesses that send marketing emails only occasionally. If you’re searching for an alternative, EmailOctopus might be a good choice. It offers all the essential features such as a drag-and-drop email builder, no-code signup forms, and automated emails — all at a fraction of the cost compared to Klaviyo.
Why switch to EmailOctopus
The most obvious reason to switch from Klaviyo to EmailOctopus is cost. EmailOctopus costs only a fraction of what Klaviyo charges plus it comes with all the necessary features such as email automation, drag and drop email builder and a Shopify integration which is powered by Zapier.
| Subscribers | Klaviyo | EmailOctopus |
|---|---|---|
| Up to 500 | $20 | $9; free plan also available |
| Up to 1,000 | $30 | $12; free plan also available |
| Up to 2,500 | $60 | $18; free plan also available |
| Up to 5,000 | $100 | $28 |
| Up to 10,000 | $150 | $40 |
| Up to 15,000 | $350 | $54 |
| Up to 20,000 | $375 | $70 |
Note: All prices mentioned above are for monthly base plans.
Features:
- Easy to use drag-and-drop email builder
- List segmentation
- No-code signup, popup forms and landing pages
- Email automation
- Zapier and Make integrations
With EmailOctopus, you can create beautiful, responsive email templates, easily segment your contact lists, and track your campaigns’ performance. You can also integrate EmailOctopus with a range of third-party applications, such as Zapier, to add more capabilities.
Conclusion
So if your e-commerce business doesn’t need all the additional features that Klaviyor has, then choosing EmailOctopus will be a better idea. Feel free to sign up for a free account and give EmailOctopus a try.
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