Klaviyo’s recent pricing update has sparked a lot of discussion about email list management and ROI. For many brands, the knee-jerk reaction has been to aggressively clean lists to reduce costs. But here’s the truth: that approach might be costing you more in the long run. Let’s unpack why this is happening and how smarter list management can help you increase revenue without sacrificing ROI.
The Pitfall of Aggressive List Cleaning
When you permanently suppress subscribers based on arbitrary time windows (e.g., 90 or 180 days of inactivity), you’re throwing away potential revenue. Here’s why that’s a problem:
Engagement Is Dynamic: Just because a subscriber hasn’t engaged recently doesn’t mean they’re uninterested forever. Customer behavior ebbs and flows—someone who hasn’t opened an email in months might become your top buyer during a holiday sale or product launch.
Lost Opportunities: That dormant subscriber might have been planning their next big purchase, but if you’ve removed them from your list, you’ve lost the chance to re-engage them.
A Smarter Approach to List Management
At Dispatch, we’re moving beyond the traditional binary approach of "engaged vs. unengaged" segmentation. Instead, we’re implementing dynamic suppression strategies that temporarily pause communication with less engaged subscribers while retaining the ability to reactivate them during high-intent periods like promotions or product launches.
Why Dynamic Suppression Works
Adaptability: Engagement isn’t static. A subscriber who doesn’t click in March might be eagerly awaiting your Black Friday deals in November. Dynamic suppression allows you to reactivate dormant profiles at the right time.
Stronger Deliverability Rates: By suppressing less engaged profiles temporarily, you improve your sender reputation and inbox placement for engaged subscribers.
Improved Revenue Per Subscriber: Dynamic strategies maximize the lifetime value of each subscriber by ensuring you’re reaching the right people with the right message at the right time.
Leveraging AI for Smarter Decisions
To take this strategy to the next level, we’re using tools like Orita to make real-time decisions about which subscribers should receive each campaign. AI-powered tools analyze behavioral patterns and engagement history to:
Predict when a dormant subscriber is likely to re-engage.
Automatically reactivate profiles during high-intent periods.
Optimize campaign targeting for maximum impact.
Key Steps to Implement Dynamic List Management
Set Up Strategic Suppression: Create suppression rules that temporarily pause communication with low-engagement profiles but keep them active in your system.
Identify High-Intent Periods: Use data to determine when dormant subscribers are most likely to engage (e.g., holidays, seasonal promotions, or product launches).
Leverage AI Tools: Implement AI solutions to automate decision-making and ensure you’re targeting the right segments at the right time.
Monitor Engagement Metrics: Keep a close eye on open rates, click-through rates, and revenue per subscriber to measure the effectiveness of your strategy.
The Bottom Line: Your Email List Is an Asset
Your email list isn’t just a cost center; it’s one of your most valuable marketing assets. Treat it accordingly. Instead of focusing on short-term cost savings, adopt a smarter, more dynamic approach to list management. By implementing dynamic suppression strategies and leveraging AI-powered tools, you can:
Maintain strong deliverability rates.
Maximize revenue potential from every subscriber.
Protect and grow the long-term value of your email list.
Ready to Optimize Your Email ROI from Klaviyo Pricing?
At Dispatch, we’re helping brands navigate pricing changes while maintaining healthy ROI on their email marketing spend. From dynamic suppression to AI-driven segmentation, we’ll ensure your email program is both cost-effective and revenue-driven.
Let’s connect to explore how smarter list management can unlock untapped revenue potential for your brand.
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