Klaviyo Powers Even Smarter Digital Relationships: The 2024 CRM Conversation Starters

Klaviyo provides a platform used primarily for email and text marketing. The Boston-based company’s software is used by nearly 150,000 merchants and e-commerce sellers who host their offerings on Shopify.

That’s significant because in August 2022, Shopify named Klaviyo the recommended email solution partner for its Shopify Plus merchant platform and made a $100 million strategic investment in the company. But the money really started rolling in throughout the past year.

Klaviyo, which was founded in 2012, went public in September 2023, raising $576 million in its initial public offering at a $9.2 billion valuation.

Besides Shopify, the Klaviyo platform integrates with other e-commerce platforms, including Magento, BigCommerce, Stripe, and WooCommerce, as well as business tools from companies like Zendesk, Okendo, and Salesforce. And in just the past year alone, Klaviyo expanded its integrations to include TikTok, enabling businesses to sync their Klaviyo lists and segments to TikTok Audiences, deliver personalized advertisements, and build high-impact look-alike audiences to attract new buyers from among TikTok’s more than 1 billion users globally.

The TikTok integration was announced in May, just two months after Klaviyo announced an integration with Nosto’s Commerce Experience Platform (CXP), empowering retailers to build highly personalized shopping journeys across onsite, email, and SMS and re-engage potential buyers with emails and SMS messages triggered by abandoned search events.

Also in March, Klaviyo integrated with Route’s post-purchase package tracking and protection solutions, ensuring Route tracking information is automatically pulled into all order email communications.

Klaviyo this year was also busy on product development. In February, it launched Klaviyo AI to help companies unlock revenue-driving opportunities and deliver exceptional customer experiences across channels.

Klaviyo AI includes predictive analytics tools that forecast next order date, lifetime value, spending potential, predicted demographics, and more for each customer; product recommendations; personalized benchmarks that show how key metrics stack up against competitors; guidance to keep emails out of spam folders; and A/B testing for sign-up forms, campaigns, flows, and more.

Klaviyo expanded the Klaviyo AI platform in July with Flows AI, which allows marketers to build flows in seconds and use segments for better targeting of customer messages; and Review Sentiment AI, which gives actionable insights about what customers love or hate.

Other Klaviyo AI innovations released at the same time were Segments AI, which generates complex segments based on simple audience prompts; Email AI, which creates email content; and Forms AI, which uses AI to test and optimize web forms for conversion.

Like so many other companies in the CRM industry, Klaviyo executives say AI is now hardwired into the company’s full technology stack.

“At Klaviyo, we believe the future of marketing is autonomous and that technology should make it easier for marketers to focus on what matters: ideas, strategy, and creating,” said Andrew Bialecki, cofounder and CEO of Klaviyo, in a statement. “AI has always been ingrained in our DNA. We started with predictive analytics to help anticipate consumer needs. We then expanded into generative capabilities to streamline work and accelerate content creation. Now we’re focused on autonomous AI and creating a platform that continuously learns and adapts.”

While AI is an important area for innovation at Klaviyo, it’s not the only area that is being explored. In May Klaviyo launched Portfolio for multi-account management, enabling businesses to link brand or regional accounts, have a centralized view into marketing performance and growth opportunities, and streamline management of their budgets, assets, billing, users, and reporting.

And to further expand its reach, Klaviyo in just the past few months added French language support and an SMS expansion that now covers the United States, Canada, Australia, the United Kingdom, Ireland, New Zealand, Germany, the Netherlands, and France. Additional rollouts are expected in the next few months across Spain, Switzerland, Austria, and the Nordic countries.

“At Klaviyo, our goal is to create the most powerful ecosystem possible so that we can help brands connect with their consumers seamlessly, wherever they are,” said Steve Rowland, president of Klaviyo, in a statement.