Use Klaviyo to increase ROAS
Are you struggling to hit your ROAS targets consistently even with well-optimized campaigns? You’re not alone; many marketers face the same challenge. Even great ads can fall short without the right data to support them. For instance, ads placed in the wrong context can push consumers away, while aligning them with relevant content can increase the likelihood of purchase by 8%. This lesson will help you rethink your approach and leverage the power of data to achieve better results.
Learn more about using key Klaviyo features to craft a high impact ad strategy
Click through the cards below to learn more about each key feature and read a use case for inspiration on how to apply these features to your own brand.
RFM report
What this feature does:
The recency, frequency, and monetary values (RFM) analysis provides deep customer insights based on purchasing behaviors and automatically categorizes these behaviors and customers into groupings (e.g. “Loyal” customers).
Customer example:
To improve customer engagement, the SWAK team used Klaviyo’s RFM analysis to segment their audience by order recency, frequency, and monetary value.
They identified “Champion” customers and launched VIP campaigns with early product access, boosting repeat purchases and average order value. At the same time, they targeted “At Risk” customers with reactivation offers and excluded unresponsive ones from regular campaigns to reduce ad costs.
By leveraging RFM analysis, SWAK increased engagement and optimized their budget.
Funnel analysis
What this feature does:
The funnel analysis allows you to build funnels using data from every integration across your tech stack. You can gain valuable insights into the user experience throughout the conversion path, refining your strategies and boosting conversion rates.
Customer example:
SWAK aimed to understand the customer journey better and identify where potential buyers disengaged. Using Klaviyo's funnel analysis tool, they built a detailed funnel that integrated data from all their platforms.
The analysis highlighted key drop-off points, especially as customers neared a purchase. To boost ROAS, SWAK refined their ad strategy to re-engage high-intent audiences at these critical moments. They focused ad spending on promoting key products to those showing strong purchase intent, with strategic messaging to address purchase barriers.
By prioritizing high-value segments, SWAK reduced drop-offs, increased conversions, and improved ROAS, maximizing their marketing efficiency.
Product analysis
What this feature does:
The product analysis allows you better understand customer behaviors related to specific product purchases, and craft marketing to match these pathways.
You can review insights around how, what, and when products in your catalog are driving orders, and align products at the right time in the customer journey.
Customer example:
SWAK wanted better insight into how customers interacted with their products, so they leveraged Klaviyo’s product analysis. By analyzing the data, they identified popular product pairings and top-selling items. SWAK used these insights to create targeted cross-sell campaigns, promoting related products to interested customers. They extended this strategy to third-party ad platforms, ensuring their ads showcased these high-converting product combinations to a broader audience.
This approach helped align their marketing with customer preferences, increasing average order values, boosting sales, and enhancing customer satisfaction.
Audience performance report
What this feature does:
The audience performance report allows you to compare your starred segments and their performance against each other across various date ranges. You can see the size change over time and filter by any conversion metric to compare performance. This information is useful for comparing which segments are performing well and which segments need to be further optimized.
Customer example:
Using Klaviyo’s audience performance report, SWAK gained a clearer view of list acquisition across platforms. They could see how new subscribers engaged with content after joining by monitoring lead ad-driven list growth.
The report revealed that many "Loyal" customers weren’t engaging with email or SMS, offering insight into engagement differences by segment. With this data, SWAK adjusted their ad spend toward more engaged segments and tailored content strategies for “Loyal” customers who were less responsive. This approach helped them maximize growth and ad efficiency.
What can I do next to improve my return on ad spend?
In the next lesson, we’ll guide you through building an effective ROAS strategy using the intelligence section of Klaviyo’s Advanced KDP or Marketing Analytics. You’ll engage in hands-on activities to apply best practices and refine your approach, ensuring your ad spend delivers maximum returns for your business.