Klaviyo Stinks (an IPO Special)!

In case you missed it, Klaviyo IPO’d today, rising about 10% from it’s initial IPO price of $30…

I’m not a stock analyst (and won’t pretend to be one), but I do know a thing or two about email marketing providers.

And here’s the thing.

Klaviyo is pretty… well… mediocre.

But EVERYONE uses them for ecommerce.

This is because they’ve positioned themselves as the go-to commerce email provider (roughly 77% of their 2022 revenue came from Shopify sellers).

In fact, they are almost a tracking stock for Shopify itself (Shopify actually owns part of them).

Sounds like they are doing something right.

BUT, they’ve been the only decent option for too long. They’ve become the “Mailchimp” of the ecommerce email marketing tools.

What’s Wrong with Klaviyo

So here’s the problems I see with Klaviyo as an email marketing tool:

1. Pricing: Klaviyo is often significantly more expensive compared to other email marketing platforms, especially as your email list grows.

2. Complexity: While Klaviyo's advanced features are beneficial for large and sophisticated marketing campaigns, they can be overwhelming for beginners.

3. Limited Automations: Klaviyo CAN do a lot, but the complexity pared with a relatively limited automation set makes it more frustrating than it needs to be to create ecommerce automations.

4. Integration Limitations: While Klaviyo integrates with many ecommerce platforms, it may not integrate seamlessly with all third-party software or services. This can create challenges for businesses that rely on specific tools for their operations.

5. Template Design Limitations: Klaviyo's email template designs are not as diverse or customizable as some other platforms. This can limit the ability to create unique, brand-aligned emails.

6. Limited Support: On free plans, Klaviyo only provides support for the first 60 days. After that, you are one your own!

7. Inadequate Reporting Tools: Klaviyo's reporting and analytics tools lack some of the depth and detail provided by other platforms. This makes it more difficult for users to track and measure the success of their email marketing campaigns.

SO, what’s the deal with Klaviyo competitors?

Better Than Klaviyo Names to Watch

I’ve watched as a number of unheralded alternatives popped up over the last few years. Here’s some names to watch in this space:

1. Omnisend: Omnisend is an affordable alternative to Klaviyo, delivering robust email marketing capabilities at a lower price point. It offers a simple user interface, making it easy for even novice users to create and manage effective campaigns. Unlike Klaviyo, Omnisend focuses on both email marketing and SMS marketing, providing a more comprehensive approach to customer communication for ecommerce businesses.

2. Moosend: Moosend is a standout alternative to Klaviyo, particularly for its advanced email creation tools. It excels in areas where Klaviyo falls short such as ease of use, pricing, and customer support. Moosend offers powerful marketing automation features, effective audience management, and comprehensive tracking tools that deliver valuable insights into your campaigns, making it an excellent choice for ecommerce businesses..

3. Brevo (formerly Sendinblue): Brevo offers a well-rounded suite of email marketing tools at a competitive price. It features a drag-and-drop email editor, automation tools, and a CRM. Unlike Klaviyo, Sendinblue doesn't limit the number of contacts you can have, making it a cost-effective solution for growing ecommerce businesses.

4. MailerLite: Known for its user-friendly interface and affordability, MailerLite is an excellent choice for small to medium-sized ecommerce businesses. It features robust targeting and segmentation options, a rich set of templates, and solid automation capabilities. It offers a free tier for getting started and its paid plans are more affordable than Klaviyo.

5. Privy: Privy is more than an email marketing tool; it's a complete suite of conversion tools, which include email marketing, pop-ups, and banners. It's highly integrated with Shopify, making it an ideal choice for Shopify store owners. Its email automation features, though not as comprehensive as Klaviyo's, are sufficient for most ecommerce businesses.

6. Shopify Email: If you're specifically seeking a tool that integrates seamlessly with your Shopify store, Shopify Email may be a perfect fit. It's included within Shopify's suite of marketing tools and is free for all Shopify users. While not as feature-rich as some other tools, it covers the basics of email marketing effectively and allows you to easily reach your Shopify customers. Also, Shopify owns part of Klaviyo and STILL launched their own email tool. Makes you wonder.

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