Last week Klaviyo sent out an email to some of their customers informing us that our email tiers were about to change.
We wanted to let you know about a change to Klaviyo’s pricing. Klaviyo's email tiers will no longer offer unlimited email plans. We are adjusting this to match our higher pricing tiers. Effective April 11, 2022 your current plan will have an email limit of 10x the profile limit.
We have been a customer for 4 years on the 40,000 profile plan. We spend $600/mo to send Unlimited Emails. Because we have been allowed no limits on this plan, our current email marketing strategy includes over a dozen highly customized flows which span the course of an entire month to allow a once per month marketing calendar refresh. We send just over 2 Million emails per month with a 25% open rate which converts to just over 30% of our total revenue. Klaviyo is a big part of our business.
This should have no impact on you or your business, as you will still be able to send emails to your customer base.
This is perhaps the most shortsighted, and tone def statement in the entire email! How dare you proclaim this won’t have an impact on our business. Of course it will...why? Well one of 2 things is going to have to happen immediately:
- We will be forced to cut our email sending by 80%, with less than 30 days to test these changes, we will likely make mistakes. These mistakes will dramatically impact our revenue, and bottom line. There will be no cost savings because of this, so it will just reduce our net income. Because Klaviyo has no way to know how many emails a flow will send in 30 days, we will only know in hindsight when we have sent too many.
- We will be forced up to a plan that matches our sending limit, in our case this is a 220,000 profile plan which will cost our company $2,200/mo, a 336% cost increase with no additional realized benefit. This will drop directly to the bottom line and cut net income by $1,600/mo.
For some of you this is no big deal, you likely won’t feel the impact...for others of you, this will be hard. You, like us, will have to push things off the calendar for the next 30 days and focus on fixing this problem you didn’t create. You’ll shop for a new provider, only to realize that daunting task of having to build your email marketing system from the ground up is overwhelming...new templates, new automations, new software...too much!
Like us you will likely settle into a quiet place of acceptance that you have spent your hard earned money building supporting the growth of a company that you wanted to believe cared about its customers. What bothers me most about this?
New customers, signing up today, are signing up for plans with unlimited email sending...and they won’t know that they will lose that capacity in less than 30 days...unacceptable!
After contacting Klaviyo’s Growth team about this issue, we were informed...rather rudely, that by using flows to send emails to our customer base, we had “circumvented” the maximum allowable send limits and that we should have been being billed more all along...not our problem for using the tools you provided to us, in the manner they were designed to be used...build better tools.
So our cost increases by 336%
If moving was easy, we would be gone...if fixing this was easy, I would be fixing it instead of writing this...but it isn’t and we need more time. 3 Months minimum notice to test changes and implement optimizations.