How can I evaluate how effective my strategy is?
By now, you've identified the key RFM groups you want to target, built your cornerstone automations, and mapped out your campaigns. You're closely monitoring opens and clicks, eager to share how you've moved the needle for your company.
While you can track high level performance of your efforts with a campaign or flow overview report, the funnel analysis report will help you identify key drop-offs and inflection points throughout your customer’s journey that may be impacting your overall conversion rate.
Understand where your customers are dropping off within key conversion funnels
The funnel analysis report in Klaviyo helps you visualize how your customers are moving through different conversion paths, or funnels. Learn how to build and customize the funnel analysis report so you can identify where you are losing your audience.
Note: Funnel analysis is available in the intelligence section of Klaviyo Advanced KDP (formerly CDP) and Marketing Analytics.
You will only be able to create 1 funnel dashboard per account with up to 10 funnel analysis cards. As you follow the steps in the next section to customize your dashboard, you will be adding funnel cards or graphs to this 1 dashboard.
How SWAK optimized their retention strategy
In the last lesson, we met SWAK Cosmetics and got to know their goals and retention strategy. At this point, they developed an automated customer journey that triggers as soon as customers enter a Loyal segment in their RFM report. Now, they’re ready to assess the effectiveness of their strategy. Here is what they did:
Analyze key dropoff points
SWAK created an automated journey that triggered when customers move up to the RFM Loyal segment. Each point in the workflow served as a key nurture point, and for it to be effective, it was crucial for SWAK to identify any aspects of the experience that might deter these valuable customers from completing a purchase.
Using the funnel analysis report, SWAK set up 3 key funnels:
- Tracking the journey from receiving the VIP program invite to making a purchase using points.
- Monitoring whether upsell and cross-sell emails encouraged additional purchases.
- Analyzing if specific acquisition channels like Instagram ads led to site activity and conversions.
Track total conversions and KAV
As SWAK focused on their loyalty segment, they wanted to ensure their efforts were driving real impact.
The Conversion overview in the intelligence section of Advanced KDP or Marketing Analytics allows SWAK to analyze how their Klaviyo initiatives are increasing conversions, which in their case was placed orders.
For more information, read step-by-step instructions for the conversion overview dashboard, here.
Track RFM group change over time
A month later, SWAK re-reviewed their RFM analysis to track the impact of their efforts. At the bottom of the report, there's a card that displays group changes over time. The goal is to reduce the number of loyal customers moving to Needs Attention or At Risk and either maintain or elevate them to Champions. By tracking this card, SWAK can monitor whether their efforts are preventing customer drop-offs.
Try it yourself: build these 3 funnels
Now that you’ve learned how SWAK cosmetics used funnels and reporting to hone in on key insights and identify key dropoff points, it’s your turn. Build these 3 funnels in your Klaviyo account and see what you learn!
Funnel 1: Optimize your SMS welcome series
Where are you losing customers in your SMS series? Let’s use funnel analysis and see what you learn.
1. Navigate to either Marketing Analytics or the intelligence section of Advanced KDP. Then, select Customer Insights > Funnel Analysis.
2. Select ‘create funnel’
3.After naming your card, select a specific completion window between funnel steps.
4.Filtering by RFM segment will give you more granular data on how your funnels perform differently based on buyer behavior. Select the RFM segment here you are most interested in tracking (you can create up to 10 funnels).
5.Select your metric events for each step. We recommend following this flow:
- Received SMS filtered to flow = welcome series
- Clicked SMS filtered to flow = welcome series
- Added to cart*
- Checkout started
- Placed order
6. Click 'create' to finalize the funnel. Now you can identify key drop offs and optimization opportunities for your key funnel groups.
Funnel 2: Optimize your top email flows by RFM segment
Are your abandoned cart and browse abandonment segments a cornerstone for increased revenue for your company? Let’s optimize them by identifying any key dropoff points.
1. Navigate to either the intelligence section of Advanced KDP or Marketing Analytics. Then, select Customer Insights > Funnel Analysis.
2. Select ‘create funnel.’
3.After naming your card, select a specific time window between funnel steps.
4.Filtering by RFM segment will give you more granular data on how your funnels perform differently based on buyer behavior. Select the RFM segment here you are most interested in tracking (you can create up to 10 funnels).
5.Select your metric events for each step. We recommend following this flow:
- Opened email filtered by flow = abandoned cart
- Clicked email filtered by flow = abandoned cart
- Active on site
- Checkout started
- Placed order
6. Click 'create' to finalize the funnel. Now you can identify key drop offs and optimization opportunities for your key funnel groups.
Funnel 3: Identify purchase patterns by category
Do specific products or categories drive a second purchase more often? Build a repeat purchase funnel and filter by product or category to see how different items influence follow-up purchases.
1. Navigate to the intelligence section of Advanced KDP or Marketing Analytics. Then, go to Customer Insights > Funnel Analysis.
2.Select ‘create funnel.’
3.After naming your card, select a specific time window between funnel steps (optional).
4.Select your metric events for each step. We recommend following this flow:
- Placed order, filtered by collection or product
- Checkout started
- Placed order
6. Click 'create' to finalize the funnel. Now you can compare your repeat purchase rate by collection or your best selling items.