AI is everywhere now. We don’t know many brands that don’t use it in one way or another now. Whether it's writing copy, generating graphics or reporting, it is speeding up business, making marketing more efficient and helping brands beat their KPIs year after year.
Did you know that Klaviyo also has its own built-in AI? That’s right! It can help you generate content for your emails to add that professional touch, even if you’re just an amateur marketer. But, we’re not here to discuss images and copy today! We want to bring your attention to another incredible AI feature: predictive analytics.
What Is Predictive Analytics?
Predictive analytics is essentially Klaviyo’s way of connecting the dots between the information you have provided and any ‘gaps’ in your database. While not always 100% accurate, it can help you better understand the types of people in your database, how much they are likely to spend, when they are likely to purchase again and what types of products they are most interested in, to name a few.
This data can help you send the right emails to the right people at the right time, boosting ROI, improving relationships and making your content more relevant.
Predictive Analytics: Gender
Klaviyo can scan your customers’ names, browsing and purchase data via Shopify to form an assumption on their preferred gender. While again, it is not 100% accurate at all times, this can help you divide your database, especially if your product is gender-specific. Let’s say you are a hosiery brand, for example. Without asking for gender, this allows you to segment your flows into two categories to show the right products to the right people. It also means you can utilise show/hide blocks to provide the right content or product blocks to people within your regular campaigns.
Predictive Analytics: Lifetime Value
Customer spending patterns are more predictable than you may think and once Klaviyo catches wind of the average order time, value and return rate of your database, it can help predict how much a customer will purchase over time. Let’s say you’re a department store selling a range of products at different prices. Those who purchase smaller goods for their first order may cap at $1,000 AUD for total lifetime spend. Those who purchase larger goods for their first order may be willing to spend $10,000 or more in their lifetime with your brand.
While these are just estimates, they allow you to comprehend who your predicted low, mid and high-value customers are. From here, you can send targeted campaigns each featuring products within their price ranges to help elevate sales, boost relationships, and potentially push their predicted value higher than initially gauged.
Predictive Analytics: Next Order Date
Like lifetime value, Klaviyo can estimate when a customer is likely to purchase again based on previous orders and browsing activity. This allows you to send customers emails at the right time to inspire purchase intent.
Similar to a replenishment flow, you can use the next order date as a flow trigger to meet customers at a time when they’re likely to spend, or when their need for your product has developed once more. You can even use this trigger as a supplement to a regular winback trigger, meaning each customer will receive your ‘I miss you’ email at a slightly different interval based on their perceived shopping patterns. We recommend testing this trigger with a traditional winback or replenishment and comparing results to make the most of your database.
Predictive Analytics Can Help Your Brand Grow
Without the need for excessive data processing or reporting, predictive analytics helps you take advantage of common shopping patterns and trends in your database to improve ROI, and this is only the beginning. Klaviyo can also predict age, total number of orders, churn rates, time between orders and next order values to help you build a strategy that reflects your customers needs and wants.
Not sure how to use predictive analytics to your advantage? Book a free consultation with our team today.
