Introduction
In today's competitive e-commerce landscape, understanding the predicted lifetime value (PLV) of your customers can significantly impact your marketing strategy. Klaviyo PLV segmentation allows marketers to create targeted campaigns that maximize revenue by focusing on high-value customers. By leveraging Klaviyo's predictive analytics, you can segment by lifetime value and tailor your email and SMS marketing to the right audience with precision. This guide will walk you through the steps to set up PLV segmentation, share best practices, and provide actionable insights to enhance your marketing strategy.
How Do I Use Klaviyo to Segment Based on Predicted Lifetime Value (PLV)?
To create a Klaviyo PLV segmentation, you need to access predictive analytics within your Klaviyo account, set up segments using the predicted lifetime value metric, and utilize these segments to target high-value customers effectively. This approach helps prioritize marketing spend and improve campaign ROI by focusing on customers with the highest potential.
Step-by-Step Guide: Setting Up Klaviyo PLV Segmentation
1. Log in to Your Klaviyo Account
Visit www.klaviyo.com and enter your credentials.
2. Navigate to Lists & Segments
Click on Lists & Segments from the left-hand menu.
Select Create List / Segment > Segment to begin setting up your PLV segment.
3. Select the Predicted Lifetime Value (PLV) Metric
a. Define Your Segmentation Criteria
In the Segment Definition panel, choose Properties about someone.
Search for Predicted Lifetime Value under Predictive Analytics.
You can set specific conditions such as:
Predicted Lifetime Value > $500 (for high-value customers).
Predicted Lifetime Value < $100 (for low-value customers).
b. Example Segment Setup: High-Value Customers
Criteria:
Properties about someone > Predicted Lifetime Value > is greater than $500.
Add additional filters if needed, such as Recent Purchases or Engagement Level.
4. Create Additional Segments for Targeted Campaigns
a. High-Value Customers (VIP Segment)
Criteria:
Predicted Lifetime Value > $500.
Has purchased in the last 90 days.
b. Low-Value Customers (Retention Segment)
Criteria:
Predicted Lifetime Value < $100.
Has not purchased in the last 180 days.
Has opened at least 1 email in the last 30 days.
5. Leverage PLV Segmentation in Campaigns and Flows
a. Target High-Value Customers with Personalized Offers
Create email flows that offer exclusive discounts or early access to sales for VIP segments.
Use dynamic content in emails to showcase products that align with their purchase history.
b. Re-Engage Low-Value Customers
Send win-back campaigns with incentives to re-engage low-value segments.
Highlight benefits of becoming a loyal customer through reward programs.
Best Practices for Klaviyo PLV Segmentation
1. Use Dynamic Tags for Personalization
Include personalized product recommendations and dynamic data like first names and past purchases in your emails.
2. Combine PLV with Other Predictive Metrics
Pair Predicted Lifetime Value with Churn Risk to target customers who are both high-value and at risk of churning.
3. Experiment with A/B Testing
Test different offers, email designs, and subject lines on your high-value segment to find what drives the best engagement.
4. Monitor Segment Performance Regularly
Use Klaviyo analytics to track open rates, click-through rates, and conversion rates for each PLV segment.
Adjust campaign strategies based on the performance data.
Common Mistakes to Avoid with PLV Segmentation
Setting Too Broad or Narrow PLV Ranges: Avoid over-segmenting your audience, which could lead to small target groups that limit campaign reach.
Ignoring Dynamic Changes in PLV: Review PLV segments periodically, as customer behaviors and values change over time.
Not Aligning Offers with Customer Value: Avoid offering deep discounts to high-value customers who may purchase at full price.
Conclusion
Implementing a Klaviyo PLV segmentation strategy is an effective way to enhance customer targeting and optimize marketing spend. By creating segments based on predicted lifetime value, you can focus on high-value customers, design tailored marketing strategies, and ultimately boost your ROI.
📩 If your email and SMS marketing strategies are underperforming and you’re unsure how to set up PLV segmentation in Klaviyo, let’s talk.
At Dispatch, we help brands maximize revenue from email & SMS without damaging subscriber engagement.
👉 Connect with Dispatch today to optimize your Klaviyo setup and marketing strategy.
Comments