Have you been letting revenue get away from you? Revenue that your competitors are grabbing?
And if so, how would you know which areas of your business you should be focusing on, to maximize your time, energy and investment?
Turns out there’s a way that you can gain incredible insight into what’s working for similar brands, by utilizing Klaviyo’s Benchmarking capabilities.
Until now, if you wanted to understand how your store is performing (Average Order Value, Items per cart, etc) or how your email marketing is performing, the best you could do was to dig into blog posts with industry benchmarks.
But these posts present numbers that are possibly meaningless for your brand, because the categories and niches there are too broad. You’re looking at stats for completely different audiences, and their emails have different goals and cadences.
Even if you get benchmarks for your specific niche, it’s still a mix of small brands alongside huge 9-figure brands, alongside brands that sell to specific demographics, etc.
If you’re going to make business decisions based on actionable insights, you’ve got to have better data and benchmarks to work with.
That’s where a clever A.I. (Artificial Intelligence) feature of Klaviyo comes into play. It’s called Benchmarks.
“Benchmark” for us means: a point of reference to compare your own emails with.
Here’s how it works: Klaviyo’s A.I. looks at data such as how often you send campaigns, your average item value, your revenue percentage from emails, and how fast your business is growing.
Then, the algorithm goes out and finds 100 similar brands, and compares your data with those brands.
Even if your brand sells a unique product, Klaivyo knows how to find the right brands to compare to, so the benchmarks will be as accurate as possible.
In the video above, we dive into the most important indicators that are available to you, such as conversion rate (how well do your emails convert, compared to emails of your niche competitors) and open rates.
Once you know, for example, that your open rates for your Welcome flow is substantially lower than similar brands, then you know that you could do much better by testing out different subject lines.
Now you know for certain – this is an area that’s worth it to apply your efforts to, in order to improve your results.
And that’s one of the main goals with benchmarks – to compare data, find out where you’re excelling, and more importantly, where there’s opportunity for growth.
Since Klaviyo is hooked up to the eCommerce platform and the purchase data, you can get unbelievable insight into what your direct competitors are doing: this is their average order value… this is their revenue per email recipient… average number of items per cart, and so on.
You have an insight into what’s possible with your audience. You might discover, for example, that you could double your average number of items per cart.
When you know all that, you can DO something about it. You know that you can potentially grow your AOV or conversion rate, and you can meet or EXCEED your targets.
And best of all, you can do that with emails, so you don’t need to spend more on buying traffic.
And if you need help figuring out how to benchmark and maximize your revenue with email marketing, book your discovery session now and we’d be excited to see how we can help.
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