Why conduct a deeper analysis?
At this stage, you are ready to analyze your client’s account performance. Doing so allows your team to uncover recent trends and numerical data to:
- Prove that your client’s brand is actively growing.
During analysis, you can specifically look into the data that adds value to your client. In most cases, the performance indicators that matter most to them will be revenue-related or areas that show growth in their business. We’ll run through a few of these in the gallery below so you have a few starting points to look for across key analytics tools. - Demonstrate that strategies you’ve implemented are the reason behind this growth.
Don’t just look for how your client’s brand has grown. Go a step further and track how your agency’s marketing efforts are directly responsible for increases in revenue, marketing engagement, repeat orders, etc. Doing so can keep your clients satisfied with your agency’s work and motivate them to continue partnering with your team long-term. - Identify your next opportunities.
Analyzing your client's data also allows you to identify gaps in their current strategy, test new ideas, and make any crucial adjustments required to improve flow and campaign performance; thus building on the foundation you have in place today.
Attribute growth to your marketing efforts
Did you read the section above and think: Great, but how do I attribute that specific marketing led to business growth?
This all comes down to attribution, which is your ability to know which messages (or channels) lead to specific customer actions (like placing an order). Klaviyo uses a last-touch model to determine whether or not a conversion should be attributed to a particular message. Learn more about this model in the video below, so you feel confident answering any questions your clients may have around attribution.
Identify growth metrics that prove success
Within Klaviyo, and any other tools you may use to monitor performance, you’ll find a range of KPIs (key performance indicators). With all of this data at your disposal, it can be challenging to pinpoint which is actually most impactful to your clients.
Let’s define a few KPIs that can drive home the true power of your agency’s work. That said, ask your clients directly: what do you hope to see in our data? In the next few lessons, we will also dive deeper into how to use Klaviyo’s analytics suite to monitor business and channel-specific KPIs.
Revenue
Revenue is the gold standard of success… literally. It is the total monetary value gained for your client’s business, and may encompass efforts in Klaviyo, on their website, via external advertisements, and even in-store promotions. As you work with this client over time, take note of revenue growth.
If revenue dips, track down what changes were made during this time that may account for this decrease, either directly pertaining to their marketing plan, or relating to another business factor (a shift in their industry, customer base, etc.).
There are a few ways in which you can express how much revenue was gained from a particular initiative, including:
- Klaviyo attributed value (KAV):
The sum of all Klaviyo attributed revenue for a select timeframe. This can be found in the Home dashboard of a client's account; navigate here to quickly prove the value of your efforts within Klaviyo. - Revenue per recipient:
The revenue your client gains per recipient of a given message. Show them trends in RPR growth to prove that your messaging strategy is benefiting their brand. Calculate RPR by dividing revenue by the number of recipients for a given message (i.e., RPR = total revenue from campaign/flow ÷ number of recipients).
Return on investment (ROI)
Return on investment (ROI) is the ratio of how much a client spends on something (in this case, Klaviyo) compared to how much revenue they have generated from this investment (i.e., their KAV, which is detailed in the dropdown above).
Calculate ROI:
ROI = ( profit - cost ) ÷ cost
Use ROI to prove that this investment is worth the cost associated with it. Express to the client that ROI doesn’t happen overnight. It is normal for it to take a few months to truly see the results from a given strategy shift, and that’s okay!
According to Recruiters Websites, a typical long-term sales cycle can take 6+ months to conclude; thus, it can take that amount of time to see an accurate measure of ROI trends.
While it's tempting to measure ROI after just 1 month, you will really need to wait a few months before gaining an accurate assessment of performance. That’s not to say that you can’t start looking at this data early; by all means! Just make sure to set the precedent with your client that strategy implementation and data analysis takes time to accurately assess growth.
List growth
List growth allows you to provide a measurement to your client around how your acquisition tactics are affecting the amount of new subscribers, and thus leads, entering into the business funnel.
Use Klaviyo’s List growth report to monitor these trends over time. This report helps you understand profile acquisition and attrition for each list in your account. In this report, you can see the sources from which profiles come in or out of your account to ensure that your marketing dollars are directed toward the most valuable acquisition methods.
In particular, take a look at the net membership change log within Klaviyo to show month-over-month shifts in list membership, particularly if your client houses one main list per channel (which is highly recommended!), so you can hone in on channel specific subscriber growth.
Customer lifetime value (CLV)
Customer lifetime value (CLV) measures the total value that a particular customer adds to your client’s business over their entire lifecycle with this brand.
You can monitor CLV growth within our CDP report (see the note below*) or through segmentation. Build a segment based on a certain threshold goal of CLV and use the segment engagement report to monitor trends in how many people qualify for that segment each month. The more customers who qualify will prove that you are increasing CLV incrementally!
There are 3 variations of CLV that you can look at in Klaviyo as long as your client qualifies for predictive analytics based on the size of their brand and marketing scope.
- Historic CLV: The total value of all previous orders an individual has made, taking into account any refunds and returns.
- Predicted CLV: A prediction of how much money a particular customer will spend in the next year.
- Total CLV: The sum of historic and predicted CLV.
Other insightful data points to track with predictive analytics include: churn risk prediction (how likely a customer is to stop buying) and a customer’s average time between orders.
*Note: If your client invests in Advanced KDP or Marketing Analytics, they will unlock a CLV report. We’ll dive into this later on in this course!