Upcoming Changes to Email Tiers


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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:

  1. 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.
  2. 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. 

 

How will this change impact your business?


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15 replies

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I feel your pain and agree with everything you have said.

Greed and stupidity come to mind. 

Spent hundreds of hours and £££’S setting up flows which will now be limited or pay another $2000 a month. It’s a joke. Have you found any alternatives or workarounds?

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Surely there has to be thousands of people in the same situation. Are we expected to role over and just accept this? I did some research yesterday on different providers and have a demo scheduled with omnisend. Will see how they compare. 

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I want to follow up...spent an hour on a call with the Growth team today. They heard my concerns, and worked with me to find an equitable solution! 

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Surely there has to be thousands of people in the same situation. Are we expected to role over and just accept this? I did some research yesterday on different providers and have a demo scheduled with omnisend. Will see how they compare. 

I think one of the most frustrating things about this was the rather flippant initial email announcement about he price changes. 

This should have no impact on you or your business, as you will still be able to send emails to your customer base. 

We were later told that we were part of the 1% of their customer base that would be impacted by this change. Let me know how Omnisend works out!

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@The Token Shop  what was the equitable solution if you don’t mind sharing?

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@The Token Shop Totally feel the concern here😢! Could you share the solution provided by the Growth team?

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Looks like they throttled us anyway and no support in. 

This pricing change is very upsetting to my company as well. We are not sending nearly as much as @The Token Shop, but it was very disappointing to wake up this morning with my account telling me I need to upgrade to a package $200 higher before I can send because I am exceeding my usage 110%. Live chat is closed for the next 3 days, and my last support ticket took 5 days for a response, so we are just in the dark now, or forced to just shell out the extra cash.  

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Hey @The Token Shop,

If you haven’t already I would suggest reaching back out to the Growth team member that you were previously working with by replying to the last email you received from them. 

@da951, similar to The Token Shop’s situation, if you haven’t already I would advise reaching out to our Support channels. Our Support Team has been handing such concerns on a case by case basis and has been prioritizing them alongside our Growth team. They’ll be able to address any concerns or further questions you had regarding this new pricing update in a manner that’s more specific towards your account. 

David

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We have been working closely with our people on the Success team, we had a plan in place to manage this which wouldn’t impact our sends. Right now we wait her pay $800+ more for the last 6 days of our billing cycle or we don’t get to send anymore emails. We paid for a month of unlimited sending and what Klaviyo chose to do today shows a complete lack of regard for their customers. On top of that, deciding to shut down chat support for 3 days is beyond maddening. 

@David To Thank you for responding, I will be creating a ticket to get some help on it. Best wishes to everyone!

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I feel your pain and agree with everything you have said.

Greed and stupidity come to mind. 

Spent hundreds of hours and £££’S setting up flows which will now be limited or pay another $2000 a month. It’s a joke. Have you found any alternatives or workarounds?

No work arounds, and the cart provider we use doesn’t integrate with very many other services, so we are kind stuck with a 300% price increase with no additional services. It is a joke! 

Hello everyone and thank you all for your feedback regarding the recent changes to the pricing model. I certainly understand the frustrations voiced here, and want to strongly encourage everyone to reach out to our support colleagues. 

We understand the changes have impacted some of our customers, but we are committed to working with anyone affected by these changes.

This has been a particularly difficult time for business owners and we would love an opportunity to partner together and find a solution that contributes to your long term success. 

The Growth Success team is working closely with brands to help with any questions & concerns, and we have had success in these discussions to thus far.

Thank you and I hope to work with you soon!

Sincerely,

Elvin M. & the Growth Success team

 

 

 

 

 

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Hello @The Token Shop,

In case you may have missed it, I left a comment on your original Community post you created which I’ve linked below: 

David

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Hey @The Token Shop,

So glad to hear!

Really appreciate you sharing your feedback and for being a part of our Klaviyo Community!

David