Everything you need to know about Klaviyo CDP
Quick Summary Klaviyo has recently unveiled a Customer Data Platform (CDP). This brand-new product serves as the foundation for creating an enduring and consolidated customer database that seamlessly integrates with other systems, fostering enhanced efficiency and integration of customer information. Learn More!
Departing from the strategies of outdated advertising that primarily targeted devices, contemporary marketing revolves around individuals and their distinctive preferences. In the current environment, the pivotal factor in achieving marketing success is the establishment of profound connections with individuals on a personal level. This shift can be attributed to the fact that people now yearn for recognition and resonance, rather than feeling subjected to hyper-targeting, which essentially silos them.
That said, every time an individual engages with your brand—be it a simple action like opening an email or a substantial one like renewing a subscription on your online store or even abandoning a cart—they give you insights into their relationship with your brand. This unveils what captures their attention, what leads to disinterest, and what propels them to make purchases.
A comprehensive technological framework meticulously crafted for cohesive experiences across all avenues harnesses these valuable fragments of information, or data points. These, in turn, elevate your connections with both established customers and potential prospects. This achievement is accomplished by immersing them in bespoke encounters that evoke a sense of personalized engagement, much like a one-on-one interaction.
To effectively store, oversee, and analyze customer data on a substantial scale, all within a cohesive platform, Klaviyo has recently unveiled a Customer Data Platform (CDP). This brand-new product serves as the foundation for creating an enduring and consolidated customer database that seamlessly integrates with other systems, fostering enhanced efficiency and integration of customer information.
What is a Customer Data Platform (CDP)?
A customer data platform functions as a brand's definitive source of customer insights. It adeptly collects customer data from various origins, organizes it into a structured format, and subsequently shares this data across other systems integrated into the brand's tech stack.
Nonetheless, it's crucial to emphasize that the scope of CDP capabilities can significantly differ between platforms. While some products offer little beyond a persistent and unified database, others, such as the newly introduced Klaviyo CDP, go the extra mile by encompassing additional functionalities to elevate your operations. In certain instances, these platforms even replace the need for multiple software components by offering an all-encompassing solution.
At its core, Klaviyo's CDP constitutes a unified database. However, it's not limited to this; it is deliberately crafted to empower you in storing, analyzing, and maximizing the utility of your data.
About Klaviyo CDP
With a dedication to enhancing efficiency, diminishing ownership expenses, enhancing data precision, and boosting revenue, Klaviyo has expanded its influence by reimagining CDP to cater to businesses of varying sizes. The resultant product is not only user-friendly for marketers but also characterized by vertical integration, ensuring it can seamlessly expand alongside your business's growth trajectory.
Klaviyo CDP will be a huge benefit to clients who utilize many different platforms but want all their data in one place. It will make it much easier to streamline data review and make decisions to benefit the business. Less time searching, more time implementing.
– Morgan Mulloy - Retention Marketing Director at Avex
Klaviyo CDP encompasses a duo of feature sets: data-oriented functionalities and intelligence-driven capabilities.
Utilizing Klaviyo's CDP data features, merchants can enhance data accuracy and achieve a deeper level of personalization by making use of tools that are seamlessly integrated into their technological infrastructure.
Merchants can now efficiently tidy and restructure profile data, all without requiring hosting or IT intervention – standardizing profile properties that have been manually inputted or extracted from various data sources. For example, edit “U.S.”, “USA”, and “America” at scale to appear as “United States” under country properties.
Group Membership API
Through group membership API, merchants can retrieve segment or list membership information of a website visitor to provide dynamically customized web experiences. This enables the extension of personalized web experiences through the featuring of dynamic pricing and promotions as well as tailored content based on users’ previous interactions.
Data Warehouse Syncing
Through its integration with various systems, the Klaviyo CDP creates harmonized data profiles sourced from multiple platforms. Accordingly, brands can seamlessly transmit customer data to external entities at designated intervals, thereby attaining a comprehensive understanding of each subscriber. This process also enables the identification of potential optimization prospects and the establishment of a foundation for forthcoming testing, achieved through activities like attribution analysis, customized insights, and thorough evaluation of historical data.
Webhooks allow you to streamline your operations and enhance data uniformity by effortlessly transmitting event data, including unsubscriptions and engagement data, to any other system integrated within your tech stack, on a substantial scale and in real time.
Within its CDP, Klaviyo introduced several intelligence features geared towards enhancing the potency of your brand’s marketing strategy by gaining profound insights into audience behavior and the performance of your business.
Merchants can elevate their audience targeting strategies by classifying customers according to purchase recency, frequency, and monetary value, paving the way for more customized engagement tactics including “Win Back” campaigns.
Discover avenues for boosting conversion rates by implementing customized funnels that align with specific customer interactions. This entails elevating the efficiency of your flows by pinpointing areas of engagement drop-off and fine-tuning their performance through personalized content, discounts, or updated messaging. Accordingly, merchants can even refine their cross-channel strategy by identifying underperforming email flows and experimenting with alternate channels such as SMS messages or push notifications for content delivery, thereby optimizing the overall customer journey.
Leverage custom models to delve into historical Customer Lifetime Value (CLV) and achieve more precise forecasts for CLV in the future. This is especially helpful during peak seasons, such as BFCM, where the platform could provide insights into top-performing customer segments within a specific timeframe; thereby helping merchants make more informed decisions regarding cross-sells and upsells.
Audience performance reporting
In line with the previously mentioned features, the Klaviyo CDP empowers merchants to effortlessly compare audience segments based on factors such as size, evolution over time, and conversions across various channels, all within a specified date range. This means they can readily identify both top-performing and underperforming segments for each channel and consequently refine their targeting strategies accordingly.
As your business expands and incorporates a broader array of tools within your technological infrastructure, it becomes imperative to contemplate how you can translate all your customer data into actionable insights. When this data becomes compartmentalized within disparate platforms, its accessibility, analysis, and effective utilization become challenging.
This is where a CDP steps in. A CDP is a vital instrument for harnessing the potential of zero- and first-party data, particularly when it originates from diverse data sources. The right CDP functions as a centralized source that harmonizes all your customer data, regardless of its varying formats, platforms, or systems of origin.
Built upon Klaviyo's robust data infrastructure, the Customer Data Platform (CDP) is crafted to ensure scalability and versatility, erasing any worries about its capacity to accommodate growth. At present, Klaviyo stands as a provider for brands of all magnitudes, encompassing not only enterprise brands but also rapidly emerging ones spanning various sectors.
If you're curious about the potential of Klaviyo CDP in bolstering the precision execution of advanced marketing strategies for your brand, don't hesitate to reach out. As a Klaviyo Gold Agency Partner, the Avex retention marketing team is available to guide you through various aspects, including setup, pricing, and leveraging the platform to its fullest potential.