2017 Year in Review

When we started Klaviyo in 2012, we set out to change the way businesses communicate with consumers. It didn’t seem right that the interactions we, as individuals, had with brands and products we liked were so impersonal — so irrelevant and generic. Klaviyo was founded on the idea that every single interaction would be better if it were powered by the data brands already have about their customers.

Klaviyo was founded on the idea that every single interaction would be better if it were powered by the data brands already have about their customers.

We realized very early on that the problem wasn’t convincing the people behind those irrelevant communications to care more about what they were saying. It was the opposite. In the conversations we had with marketers and ecommerce founders, we were floored by their dedication to their customers and the creative and ambitious experiences they wanted to create. And it wasn’t as if they didn’t understand data was the key to creating those experiences. The problem was that data — the information around what consumers were looking at, reacting to, and buying — was too difficult to access. The tools those marketers and ecommerce founders were using didn’t track enough. They weren’t accurate. They weren’t fast or easy to use.

We knew we could do better.

So we built Klaviyo to be really good at taking in and storing rich data. Then we built a powerful engine that made it fast and easy to use that data to improve how marketing messages were targeted and personalized. And finally, we made sure that we could go deep in reporting on how those messages were being received — so that our customers could constantly learn, iterate, and optimize.

With thousands of users in the Klaviyo community today, we know we’re onto something big.

We’re proud of how we’ve been able to help brands build better relationships with their consumers through more thoughtful, data-driven communication. And we’ve also seen how those relationships have translated into high growth for our customers. But we’re still only scratching the surface.

Between the explosion of customer data produced; the evolution of data science and the technical possibilities for how that data can be leveraged; and the shift in how consumers expect to interact with brands…we’re at a very unique point in history. In the next few years, marketing itself is going to be transformed. We’ll move from data inspiring relatively few communications to data powering every single interaction any business has with an individual — because brands that don’t make the shift won’t be able to compete. The end result will be exceptional consumer experiences and far stronger customer relationships.

Marketing itself is going to be transformed…to data powering every single interaction any business has with an individual.

At Klaviyo, we’ve had the unique opportunity to start this transformation and we have big ideas and ambitions for what comes next. With that in mind, it’s a good time to reflect on how we’ve been making progress against our goal of changing the way businesses interact with individuals over the past year.

Check out our “2017 By the Numbers

2017 was a growth-filled year for Klaviyo users. On average, their businesses grew by 63% from the start of the year to the end of 2017; and more than $1 billion of their sales were attributed to Klaviyo. Our community of companies using Klaviyo grew by nearly 3,000 to a total of more than 5,500.

To meet the demands of all the new users, we focused on making Klaviyo easier, faster, and more reliable than ever. Designing great emails became effortless, thanks to the launch of our new template library; updates to header blocks, changes to our template editor, the launch of dynamic product blocks, and reusable custom blocks. We also focused on enhancements to our reporting, with the introduction of the email campaign trends report and the subscriber engagement report.

And we significantly scaled our analytics and email infrastructure ahead of Black Friday and Cyber Monday – the biggest weekend of the year for our customers. We sent half a billion emails that weekend, but that’s only part of what Klaviyo accomplished. To make sure our customers were sending relevant emails, we stored over 100 billion customer events across 600 million customer profiles and 700,000 customer segments — all of which update in near real time. Our obsession with customer analytics makes it possible to transform marketing campaigns from “blasts” to meaningful, personalized messages. We know no one can match the power and scale of our analytics and segmentation today, and we’re making big investments in 2018 to make it faster, more powerful, and more intuitive.

…we stored over 100 billion customer events across 600 million customer profiles and 700,000 customer segments.

We also focused on getting even closer to our customers and improving the experience of using Klaviyo. The revamp of the Klaviyo Help Center, and launch of live chat meant more access to Klaviyo experts than ever before — and Klaviyos themselves had more opportunities to interact with and learn from our users. If the 1,390 people who gave us perfect scores on their support experiences are any indication, Klaviyo users are pretty damn happy about that!

The Klaviyo partner community also gave us several reasons to celebrate. Our relationships with ecommerce and marketing software providers and agencies have long been a major part of how we’ve wanted Klaviyo to grow. In 2017, we formalized our partnerships with Shopify Plus, Shopify, BigCommerce, and Magento. And we launched our Partner Program, which nearly 1,000 agencies and ecommerce solutions providers participate in today.

It was also a growth-filled year for Klaviyo as a company. We kicked things off by moving to a new 25,000 square foot office in January — just in time, too, since we averaged a new hire every week this year. Our new office gave us room to start hosting the educational courses we offer in-house. We’ve long been fans of things like General Assembly’s front end development course; in fact, more than two dozen Klaviyos have taken a GA course. But the new office includes a dedicated classroom where we can host courses like a 10-week, 60 hour data science intensive for interested Klaviyos. And outside the office, we started telling the Klaviyo story a little more publicly – including sharing some advice for entrepreneurs on bootstrapping to $1M before considering outside investment, being featured in BostInno, and being named Forbes’ startup of the week.

Oh… then there was that time 81 Klaviyos hopped on a plane to watch the Patriots beat the Bills. Yep, that really happened: we celebrated after Cyber Monday with an impromptu trip to Buffalo. Incidentally, that trip revealed that we have two Bills fans in the company. We tried not to give them too hard a time.

Looking back at 2017, we’re grateful for the Klaviyos, customers, partners, competitors, and friends who have made the year a big success. We’re proud of what we’ve accomplished so far — of how we’ve helped thousands of companies improve the way they communicate and, in turn, grow their businesses. But we still have work to do towards our ultimate vision and we’re always looking for new Klaviyos to help us build the future.

If solving tough problems with smart and passionate people sounds right up your alley, then check out our open job listings or drop us a note. We couldn’t be more excited and energized for what 2018 will bring!

Andrew Bialecki
CEO & Co-Founder of Klaviyo
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