Lesson 6: Understanding Performance - Benchmarks & Analytics

Transcript:

Welcome to our lesson on Understanding Performance with Benchmarks and Analytics. In our previous two lessons, we covered The Automated Customer Journey, detailing Signup Forms and Flows followed by our lesson on Campaign Strategy & Segmentation. It’s important to understand how both your campaign and flow emails are performing as well as signup forms to help make informed decisions and refine the approach in your marketing. So, we’ll be covering the following topics in this lesson:

  • Account Dashboard
  • Overview Reports
  • Metrics
  • Custom Reports
  • Benchmarks
  • Actions from Insights

Dashboard & Overview Reports

Within your Klaviyo account, you’ll see on the dashboard you have a performance tab. This can be a useful, quick snapshot to see some performance data. Note the dropdown to choose different metrics, which will alter what you see in the performance tab. As you scroll down the page, you can see metrics broken out by your individual Flows and Campaigns.

Additionally, you have the Analytics tab on your dashboard. This can be customized to have cards with the data you specifically want to see. However, I often find that the more useful data is found within the analytics tab in the account, which we’ll be getting into shortly.

Overview Reports

By navigating to different sections within your account, Klaviyo does a nice job of showing associated performance data, these are your Overview Reports.

Signup forms

Going to your signup forms will first indicate the number of submissions and submission rate. 

Clicking into a given form, you can access further details. You’ll see an overview tab, advanced reports tab and A/B test results tab. The overview is a useful snapshot, where you can adjust the time window and see that data. By selecting the Advanced Reports tab, you’ll be able to see data on different device types as well as UTM parameters. The A/B testing results, as the name implies is where you can access any of your test results data.

Flows

When you navigate to your Flows and enter into a given Flow, at the top of your screen, you will find a “Show Analytics” button. By selecting this, you’ll see relevant data through the flow. Open Rate, Click Rate, Placed Order Rate, and Revenue from each email is indicated. Also, conditional splits will show relevant info on the yeses and nos. Furthermore, by selecting an email box, you can see some more detailed information on the left side. You can dig into that information further still by selecting “View all Analytics”. 

Campaigns

Within your campaigns section, each campaign will indicate some high level metrics with an open rate, click rate, and revenue from placed orders. You can alter the conversion metric from placed orders if needed. For instance, you might want to look at Active On Site data to see how many site visits were generated from your campaigns.

By selecting a given campaign, you can see further, detailed data on the campaign performance.

Metrics

Let’s take a bit of a further look at understanding Metrics.

Within the Analytics tab from your menu on the left, you will find Metrics, Custom Reports, and Benchmarks.

By navigating to Metrics, you can see a list of all the different metrics upon which your Klaviyo account is set up to collect data. There may be additional metrics which will appear with some integrations. However, each metric will have:

  • ​​Charts gives a line graph visual representation of your metric data
  • Activity Feed  shows timestamped instances of each metric in order to verify who and when any metric activity was logged
  • Cohorts analyze retention and churn
  • Best People will indicate your top performers for a given metric
  • Activity Map will show the geographic location of where any metric activity was logged

I tend to not spend a lot of time within the Metrics. However, if there’s ever any question whether an account is logging specific data, this is where to look. For example, whether or not viewed product data is being collected to trigger the Browse Abandonment Flow, the Activity Feed on the Viewed Product metric is where to check.

Custom Reports

Within the Custom Reports section, you can find 5 different types of custom reports:

  • Single Metric Deep Dive Report: creates a report on a single metric.
  • Multi-Metric Report: creates a report for performance across multiple metrics.
  • Campaign Performance Report: analysis of campaign performance across specific metrics.
  • Flows Performance Report: creates a detailed report on flow performance across specific metrics.
  • Product Performance Report: creates a report on product performance across the full funnel of browsing, checkout, and purchasing.

You can choose the specific metrics and data you want on the report and for the relevant time window.

Benchmarks

Personally, I find Benchmarks to be one of the most beneficial tools in the analytics arsenal. Benchmarks provides a unique analysis from Klaviyo that takes a lot of nuances and factors into consideration to provide some truly useful and immediately actionable data. Klaviyo’s data science team has put together this feature that will use some key indices to match your account with a group of peers or that is, accounts similar to yours. First, it is based upon your specific industry vertical. You may need to adjust the chosen industry within your settings. In order to check this setting, navigate from the dropdown in the top right, and select “Account”, then choose the “Contact” tab and then “organization”. Scroll down the page and verify you have the correct industry selected. Now, within your industry, your peer group is based on:

  • Percentage of days with campaigns sent
  • Average item value
  • Email Revenue Percentage
  • Year Over Year Growth Rate
  • Monthly Revenue

From that base level understanding of your industry and particular business model, the Benchmarks tool will show you how you stack up in comparison to your peer group. You can see plain and simple if anything is poor, fair, good, and all the way up to excellent. These descriptors are based upon the percentile which accompanies each description of the performance.

You can see different views within Benchmarks, navigating across the tabs for Overview, Business Performance, Campaigns, SMS, and Flows in order to gain the specific insights you may want to find.

Actions from insights

Once you have a clear understanding of your performance data and how you stack up against your competitors, you’ll want to act on it and put things in motion to iterate on constant improvements.

Signup Form Metrics

When considering the performance of your signup forms, it’s important to have a fundamental understanding for performance. Most popup and flyout signup forms will have a submission rate between 1% and 3%, but can be higher depending on a number of factors. If you’re lower than 1%, you definitely want to address it and make sure nothing is fundamentally flawed in the form. However, no matter where you are performance-wise, always strive to improve. Some aspects to consider for improvement include the following:

  • Mobile Optimized
  • Time Delay Settings
  • A/B Test

Make sure your form is optimized for mobile - maybe have a separate form for mobile altogether. Keep in mind that users will have to type on their phones and have a fundamentally different experience.

Also, take a look at your time delay settings. Perhaps you are showing too soon and being a nuisance, or perhaps not soon enough and users don’t even have the opportunity to sign up. Maybe you need a separate form specifically geared toward exit intent. All things worth considering and testing.

So, always A/B test when you are looking to find more opportunities for improvement. You can test a multitude of factors: copy, imagery, colors, your data fields, virtually all of the aspects of the form can be tested.

Campaign & Flow Metrics

For both campaigns and flows, you’ll want to consider a number of different factors for your metrics. There are your Deliverability Metrics as well as List Growth & Engagement Metrics. Of course, there is some cross-over between the two. We’ve discussed the implications of Deliverability a number of times. The main things that impact it are:

Deliverability Metrics
  • Opens
  • Clicks
  • Spam Complaints
  • Bounces
  • Unsubscribes

Unsubscribes, Spam Complaints and Bounces are maybe some of the lesser understood metrics, however it’s important to demystify what you can do to improve them. Being equipped to address them will ensure you know what to do to keep your account healthy.

How To Reduce Spam Complaints

If you see your spam complaint rate at or above 0.08%, it’s probably time to take some action. Some of the things you can do are:

  • Ensure Checkout Opt-In Is Not Pre-Selected
  • Make your unsubscribe link easily accessible
  • Enable double opt-in
  • Enable global unsubscribes
  • Avoid spammy subject lines
  • Ensure that your emails render for all users

First, double check to make sure that your Checkout Opt-In is not pre-selected by default. This could mean that customers are opting into email marketing without realizing it. Then they start receiving emails they didn’t expect, resulting in some marking it as spam.

Also, make sure your unsubscribe link can be found easily within your emails. If people are unable to opt out of your emails when they want to, they might go so far as to mark it as spam. 

Double opt-in is enabled by default on your account and it requires that users verify their email address when they subscribe. Upon signing up, the user receives an automated confirmation email and will need to click the link within that confirmation email in order to be added to a contact list. Single opt-in will create a lesser barrier of entry for users to subscribe by adding them straight away. The trade off here is that with single opt-in, users can subscribe and be added to a list with incorrect email addresses or even false email addresses. Within each list you will have the ability to toggle between double or single opt-in within the list settings.

Enabling global unsubscribes means that you remove users from every list when they choose to unsubscribe. If you have multiple contact lists where users might be subscribed, enabling this setting within your lists will suppress them altogether. Otherwise, it’s possible that a user who meant to opt out of your emails will remain on a separate list and will still receive some emails. You can update this also on your list settings.

Avoiding spammy subject lines seems like a no-brainer, but it does bear mentioning. Make sure your subject lines are compelling and don’t seem spammy or like click bait. Some inbox providers might filter these or users may just assume them to be spam straight away without opening.

Lastly, make sure your emails are rendering for all users. Be sure to test and make sure different browsers, devices, and  inbox providers aren’t doing anything to compromise your emails. If there is a whole group of users unable to receive your emails properly, that could be a significant problem.

How To Reduce Bounces

There are two different types of bounces that you might experience. Hard bounces are emails that cannot be delivered due to a permanent reason, such as a fake email address which is undeliverable. Klaviyo will automatically suppress a profile that hard bounces.

Soft bounces, however, are emails that cannot be delivered due to a temporary reason, such as a full inbox. If an email soft bounces more than 7 consecutive times, Klaviyo will automatically suppress this address.

You still might have a bounce rate that will reflect poorly on your sending reputation. If you see your bounces at or above .8%, what can you do?

  • Email real, consented contacts
  • Clean your lists
  • Remove soft bounces
  • Enable double opt-in

The main thing is to make sure you are emailing legitimate, real, consented contacts. You can do this by keeping your email list cleaned on a regular basis, filtering out a segment profiles that have received soft bounces, and enabling double opt-in. 

How To Reduce Unsubscribes

When you see a significant amount of unsubscribes on your account, that is alarming. A significant amount would be at or above .3%. When you see unsubscribes at that level, you’ll want to look into the following options to see improvement:

  • Ensure Checkout Opt-In Is Not Pre-Selected
  • Send Primarily To Engaged Segments
  • Regularly Clean Email List
  • Enable Global Unsubscribes
  • Content Should Match Expectations
  • Content Should Match Subject Lines
  • Use The Manage Preferences Page

Again, here it is important to make sure your Shopify checkout settings do not have the email marketing opt-in pre-selected. Also, send primarily to your engaged segments as well as keep your email list cleaned on a regular basis. Enable Global Unsubscribes. Make sure the content of your emails matches what users have expected when subscribing as well as what the subject lines indicate. Lastly, you can use the manage preferences page. This allows users to update profile data to indicate how often they would like to be emailed. You can leverage this to form different segments in order to email at different intervals. This way, hopefully, you can retain the subscriber if they feel overwhelmed by too many emails.

Now that we’ve covered the deliverability metrics and how to address them, we can now shift our focus to Engagement Metrics. The primary metrics we look at for engagement are: opens, clicks, and revenue. 

Engagement metrics

  • Opens
  • Clicks
  • Revenue

Open rate is the number of individuals opening your email divided by the total number of recipients.

Click rate is the percentage of people who clicked a link in your email out of the total number of recipients. This is not to be confused with click-through-rate which measures those who clicked your email divided by those who have opened that email.

Revenue, I hope you already know what this is.

The best way to measure your performance on these metrics and find insight for clear areas of opportunity is to utilize your Benchmarks. You’ll be able to see the general health breakdown in order for you to hone in on areas for improvement. The biggest battle is knowing where to focus, but Klaviyo’s made it really simple through Benchmarks. Next is knowing what to do with that information.

Open Rates

  • Segmentation
  • Send Times
  • A/B Test Subject Lines

For open rates, first make sure you are reaching the right audience through segmentation. Also, consider your send time. You may be sending to the right segment, but perhaps your timing is off and it’s buried in most inboxes during the work day. Lastly, try A/B testing your subject lines to see further improvement.

Click Rates

  • A/B Test Email Content
  • Incentives
  • Ensure Subject Lines Match Content

For Click Rates, definitely look into testing new content within your email. Perhaps, the layout of the email is confusing or the call to action isn’t apparent. Perhaps there is excessive scrolling or an overwhelming amount of content. Make use of the A/B testing feature for Clicks and try out some different options with the email content. Maybe it simply is not a compelling offer within the email. You might try including some form of incentive, be it an actual discount or establishing another value proposition or even appealing to the fear of missing out. Making sure you are providing some compelling value will help increase click rates. Lastly, ensure that your subject lines are in line with the content of the email. If there is a mismatch in expectation, you might have subscribers reacting negatively as we already noted on spam complaints and unsubscribes.

Revenue

  • Improve Site UX
  • Link Appropriately
  • Segmentation

In order to see increases in revenue, much of this may have to do outside of email and pertains to your site. Make sure you have a streamlined user experience that allows users to seamlessly flow through checkout. Of course, you’re going to want to make sure that where you are linking on the site makes sense; ensure that you don’t make the user have to work to find the relevant product or content on your site. Lastly, make sure you are emailing profiles that are segmented properly. The more targeted and specialized your messaging is within the customer journey, the better results you’ll see in terms of opens, clicks, and revenue.

Recap

In this lesson, we covered the multitude of ways Klaviyo provides you performance metrics on your account. You can have high level snapshots on your Account Dashboard Performance tab as well some more tailored information on your Analytics tab. 

You can also find overview reports within the respective sections for your Signup Forms, Flows, and Campaigns.

Within your Analytics section, you can dig deeper into by generating Custom Reports or see how you are performing relative to your peer group within Benchmarks.

Lastly, we discussed some clear, actionable ways to improve your account performance.

In our next lesson, we’ll be discussing how to put together all that we’ve learned to prepare for a successful Black Friday and beyond.