Klaviyo has notified users that it will auto-upgrade plans based on active profile counts. Here's everything you need to know about the upgrades and how to navigate the changes. If your Klaviyo account tier matches the number of active profiles in your account, then you will not be affected by the pricing updates. While we have done everything to ensure the below information is accurate, please consult your own Klaviyo rep or marketing agency for full details.

With the nature of e-commerce and how Klaviyo's pricing works, it is very possible that your number of active profiles might exceed your plan. Once a customer enters their email on your website (such as in a sign-up panel or at checkout), they become an ‘active profile' on your Klaviyo account, regardless of whether they have subscribed or not.

What's Happening?

Klaviyo is cracking down on accounts where their number of active profiles exceeds that allowed by their plan. If your current plan allows for e.g. 10,000 profiles and your current number of active profiles is more than 10,000 then as of February (specific dates can be found in your Klaviyo account), your plan will be auto-upgraded.

Even if as part of your Klaviyo account set up you have un-checked the box that says "auto-upgrade my account", we suspect Klaviyo will override this setting on this occasion.

How Much More Will I Have To Pay?

There are two answers to this question and it depends on which answer describes your profile.

Scenario 1 If the plan that Klaviyo will upgrade you to is less than a 25% price increase, then your new monthly Klaviyo bill will be the price that can be seen in the back-end of Klaviyo when you click 'Change Plan'.

For Example: The images below display the prices for two plans. One with 5000 active profiles and one with 5500 active profiles. The price increase in these plans is only $10. Which is only a 10% increase in price. If Klaviyo moved you from the 5000 active profiles plan to the 5500 active profiles plan, you will then pay $110 per month going forward.

Scenario 2 If the plan that Klaviyo will upgrade you to is more than a 25% increase then Klaviyo will cap your new price at a 25% limit. Klaviyo will potentially issue one invoice on the renewal date that is the same price as your current plan and then issue a second invoice for the 25% extra based on the price issued in invoice 1.

For Example: If you are currently on the 5000 active profile plan at $100, but you have 120,000 active profiles. This is a price increase of around $1100 which is clearly more than a 25% price increase. However, Klaviyo will only charge you $125 as the 25% spend increase cap takes effect.

What Changes Do I Need To Make? 

If you would like to keep your Klaviyo plan at the same or a similar level and your active profile count is much higher, then you will likely need to suppress some profiles until the number of active profiles matches that of the level you would like to pay for.

Luckily Klaviyo has a specific guide on creating a useful segment to identify profiles that are no longer active. You could also look at users who placed an order a couple of years ago who have not placed another order since then. Keep in mind who your truly valuable customers are.

You can create segments in Klaviyo, then click the 3 dots to the right hand side of that segment and click 'Suppress current members'. Keep in mind that, once you suppress a profile or a full segment of users, they will not receive any emails from you unless they re-subscribe. So they will not receive any abandoned cart or other post-purchase flows.

Klaviyo's New Billing Preference Options

What seems to be the final piece of the new pricing updates are the new billing options that Klaviyo has added to each account under Settings > Billing > Preferences. You will see two new setting boxes: Email Upgrade and Profiles auto-downgrade. These options allow you to edit your plan in line with your current email sending needs.

1. Flexible Sending

In a nutshell, flexible sending allows you to pay upfront for more emails when you need them, for example during Christmas, or Black Friday. When you have your 'Email Upgrade' setting set as Flexible Sending, and click Update. Klaviyo will look at your current plan, figure out how much one email costs, look at the number of emails the next plan up allows, calculate the cost of these emails and charge you for these, allowing you to send more emails for. the remainder of your current billing cycle.

For example, if your current plan is $600pm and this allows for 400,000 email sends, this works out to be $0.0015 per email. The next tier up, allows for 450,000 emails (50,000 more than your current plan). At your current price of $0.0015, an extra 50,000 emails will cost you $75. Klaviyo will charge you this upfront and provide you with 50,000 extra emails to send to your customers. 

Your next bill will be $600 as that was the plan you were on before you paid to upgrade your email sends.

2. Automatically Upgrade

This does exactly as it says on the tin. Each billing cycle, Klaviyo will look at the number of active profiles in your account and upgrade your plan based on the number of profiles if it is more than your current plan allows. Note that you cannot have the 'auto-downgrade' option also selected, while 'auto-upgrade' is on. Essentially, there doesn't seem to be a way for Klaviyo to fully dynamically change your plan up or down depending on your profiles/email sending requirements.

3. None

When this option is selected, Klaviyo will not allow you to send emails above what your current plan allows. The only way to send more emails is then to enable 'Flexible Sending' or 'Auto-Upgrade'.

4. Profiles Auto-Downgrade

Being the opposite of auto-upgrade, each billing cycle, Klaviyo will look at the number of active profiles in your account and downgrade your plan based on the number of profiles if it is less than your current plan allows.

This option can be selected when the Email Upgrade options of 'Flexible Sending' or 'None' are chosen.

How We Can Help

Our Digital Marketing team are always aware of upcoming changes to platforms that will affect your business. As part of our digital marketing retainer, we'll see these changes ahead of time and come up with the solution that best suits your goals. Contact us now to get started and save yourself any nasty surprises that your apps and platforms might try to throw your way.