Encourage higher-priced purchases using predicted CLV
You’ve probably already built segments of customers based on their purchase history. For example, you may have a VIP or loyal customer segment that includes customers who have made frequent large purchases in the past.
However, if you also have insights into how much they’ll purchase from you in the upcoming year, you’re empowered to target them with even more specific messaging to proactively encourage purchases.
This is where predicted customer lifetime value comes into play. Predicted CLV uses AI to provide you with an estimate of the amount of money a customer will spend, and how many total purchases they’ll make, in the next 365 days. When you use predicted CLV in your segment definition, you can better target those customers with even more personalized promotions that will drive them to convert.
Target customers with promotions using predicted CLV
In the below video, you’ll learn how to build a segment of customers with a high predicted CLV, and how to target this segment with a sign-up form and campaign series to encourage these customers to take action.
Use forms and campaigns together for reinforced messaging
When you coordinate targeted sign-up forms and campaigns, you can nudge loyal customers to take action and reinforce your messaging. For example, announce a special offer with a personalized campaign and launch a targeted form on your site on the same day that stays live throughout your promotion period. Then, consider sending a follow-up campaign towards the end of your promotion window to those who haven’t yet purchased to encourage last-minute conversions.
Explore strategies below for how to coordinate sign-up forms and campaigns to your high predicted CLV segment that will drive more purchases.
VIP exclusive discount
Offering a special discount for your most loyal customers makes them feel valued by your brand.
You know these customers are likely to make large value purchases from you based on their predicted CLV, so try providing them with a special discount to proactively encourage this action.
Try offering a certain percentage off or value saved when you spend over a certain threshold (for example 20% or $25 off of your purchase of $100 or more).
Sale early access
Early access to sale prices is another engaging strategy to incentivize more purchases from your high predicted CLV customers.
The exclusivity of special early access to your promotion may nudge these customers to make large purchases quickly before the regular promotion period launches and items run out.
Make the early access period brief, such as one week, to highlight the need for urgency.
Refer-a-friend promotion
You know these customers love your brand; encourage them to spread the word with their network for a reward!
Refer-a-friend promotions are a fantastic way to expand your subscriber list and nurture your loyal customer base.
Offer your existing high predicted CLV customers an incentive for referring their friends, such as a discount or free shipping for their next purchase.
Bundled incentive
Use bundled incentives to raise CLV by nudging customers to make multiple purchases.
Offers such as BOGO (buy 1 get 1) are great examples of bundled incentives. You can try bumping up these numbers for certain products, such as buy 3 get 2 free, to incentivize customers to buy large quantities for great rewards.
Review your metrics
After you implement these strategies, it’s helpful to review your form and campaign metrics to assess how your promotional strategy performed. Explore the dropdowns for reminders about key metrics you can analyze in Klaviyo:
Form submission rate
Form submission rate tells you the percentage of people that submitted your form out of all of the people who viewed your form. When you create promotional sign-up forms, make sure you configure a CTA so you can gain valuable insights from this metric.
Find your form submission rate by going to Sign-up forms in the left-hand navigation menu of Klaviyo, and viewing your Submit rate.
Looking to improve your form submission rate? Consider A/B testing your forms to find the best variation that encourages your customers to take action.
Form revenue lookback
Form revenue lookback shows you how many users submitted your form and then completed a purchase within a given lookback window. This is a very useful metric for understanding how many customers were driven to take action after seeing your promotional sign-up form.
You can configure your own lookback window for attributing revenue to your form submission. To do so, click Sign-up forms on Klaviyo’s left-hand navigation menu and then click the gear icon.
If your form isn’t driving many conversions, consider clarifying your CTA or updating your promotion strategy.
Campaign open rate
Campaign open rate tells you the percentage of people who opened your email out of everyone who received it. Your open rate gives you a good idea of how many of your predicted CLV customers were enticed by your subject line to open your email and learn more.
View your campaign open rate in Klaviyo by clicking Campaigns on the left-hand navigation menu, and searching for your specific campaign in the list view. You’ll see your metric listed under the Open rate column.
If your open rate is low, consider workshopping your subject line to be more specific and personalized, and use engaging language to highlight the value and benefit of your promotion. If you need more help, try Klaviyo’s subject line assistant for AI-generated recommendations for conversion-driving copy.
Campaign click rate
Campaign click rate shows you how many people who clicked the CTA in your email out of everyone who received it. Use click rate to determine how effective your email content is at driving recipients to take action by clicking your CTA link.
View your campaign click rate in Klaviyo by clicking Campaigns on the left-hand navigation menu, and searching for your specific campaign in the list view. You’ll see your metric listed under the Open rate column.
If you’re looking to improve your click rate, check out this resource for helpful strategies: How to increase email click rates.
AOV of the campaign
AOV (average order value) of the campaign provides you with the average value of orders placed after receiving the campaign. This number is calculated dividing the total revenue generated by the campaign by the total number of orders placed.
To find your campaign AOV, click Campaigns on the left-hand navigation menu and search for your specific campaign in the list view. Click your campaign name, and then find AOV by going to the Overview tab and viewing the metric on the Revenue card.
Note: you must have a Placed Order metric enabled to have this information available in your account.
Campaign conversion rate
Campaign conversion rate provides you with the number of people who performed a certain action (such as placing an order) out of how many people received the campaign.
To view conversion rates in Klaviyo, head to Campaigns on the left-hand navigation menu and search for your specific campaign in the list view. Your conversion rate will be located next to your open and click rates. To change your conversion metric, use the dropdown next to the search bar.
If you’re looking to improve your conversion rate, check out this resource for helpful strategies: How to increase email conversion rates.