Klaviyo’s email and SMS marketing platform is a powerhouse for eCommerce, but costs can spiral as your subscriber base or campaigns grow.
Below are ten actionable strategies to trim your Klaviyo bill while maintaining strong performance, perfect for marketers and business owners looking to optimize budgets.
1. Clean Your Subscriber List Regularly
Inactive subscribers inflate costs since Klaviyo’s pricing scales with list size.
How to do it:
- Segment subscribers who haven’t engaged (opened or clicked) in 6 to 12 months.
- Send a re-engagement campaign, like a “Come back!” offer.
- Remove unresponsive contacts post-campaign.
💰 Savings: Dropping 10,000 inactive subscribers could save $150 to $200/month.
Action: Plan quarterly cleanups using Klaviyo’s segmentation tools.
2. Optimize Email and SMS Frequency
Over-sending emails or SMS messages racks up charges, especially on usage-based SMS plans.
How to do it:
- Check analytics for optimal frequency (e.g., 2 to 3 emails/week).
- Limit SMS to high-value triggers like abandoned carts.
- A/B test send schedules to cut low-impact messages.
💰 Savings: Cutting SMS sends by 20% might save $50 to $100/month.
Action: Audit campaign frequency in Klaviyo’s reporting.
3. Leverage Free Features Before Add-Ons
Klaviyo’s free tools—flows, segmentation, analytics—are robust. Maximize them before splurging on add-ons.
How to do it:
- Use free flow templates for welcome or post-purchase sequences.
- Rely on standard analytics instead of premium reporting.
- Experiment with dynamic content for personalization.
💰 Savings: Avoiding a $100/month add-on saves $1,200/year.
Action: Review your plan and deactivate unused add-ons.
Don't miss: Top 10 Overlooked Klaviyo Features That Will Improve Your Email Marketing
4. Negotiate or Downgrade Your Plan
You might be overpaying if your plan doesn’t match your usage.
How to do it:
- Contact Klaviyo support to discuss discounts or better rates.
- Switch to a lower tier if your list or sends have shrunk.
- Opt for annual billing for 10 to 15% savings.
💰Savings: Downgrading from $700 to $500/month saves $2,400/year.
Action: Email Klaviyo to review your account.
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5. Consolidate Campaigns with Segmentation
Multiple campaigns for different segments increase costs. Use segmentation for efficiency.
How to do it:
- Build segments for behaviors (e.g., VIPs, recent buyers).
- Create emails with conditional content for multiple groups.
- Merge smaller campaigns into one targeted send.
💰 Savings: Halving campaigns could save $50 to $150/month.
Action: Test one consolidated campaign this week.
Also read: How to create a Segmentation strategy in Klaviyo
6. Pause Underperforming Flows
Not all automations deliver ROI. Inactive or low-conversion flows waste resources.
How to do it:
- Review flow performance in Klaviyo’s analytics (e.g., revenue per email).
- Pause flows with open rates below 10% or minimal conversions.
- Revamp or replace with higher-impact sequences.
💰 Savings: Disabling two weak flows could save $20 to $50/month in send costs.
Action: Audit flows and pause one underperformer.
Also read: How to Use Klaviyo: Learn the 5 Big Mistakes to Avoid
7. Use Klaviyo’s Free Integrations
Premium integrations can inflate bills. Stick to free ones where possible.
How to do it:
- Connect Shopify, WooCommerce, or other free integrations.
- Avoid paid apps unless they drive measurable ROI.
- Use Zapier’s free tier for basic automation.
💰 Savings: Skipping a $50/month paid integration saves $600/year.
Action: Check Klaviyo’s integration marketplace for free options.
Also read: Best Klaviyo Integrations to Add Firepower to Your Email Marketing Strategy
8. Train Your Team to Avoid Over-Reliance on Support
Overusing Klaviyo’s premium support or hiring consultants adds up.
How to do it:
- Train staff using Klaviyo’s free Academy or webinars.
- Build internal expertise for flows, templates, and reporting.
- Reserve support tickets for complex issues only.
💰 Savings: Reducing support reliance could save $100 to $300/month.
Action: Schedule a team training session this month.
9. Cap High-Cost A/B Tests
Frequent A/B testing with multiple variants can increase send volumes unnecessarily.
How to do it:
- Limit tests to one or two variants (e.g., subject lines, CTAs).
- Test on smaller segments (10 to 20% of your list).
- Focus on high-impact campaigns like welcome emails.
💰 Savings: Cutting test sends by 30% might save $30 to $80/month.
Action: Plan one focused A/B test for your next campaign.
10. Monitor Usage to Avoid Tier Jumps
Sudden list growth or send spikes can push you into a pricier tier.
How to do it:
- Track subscriber counts and send volumes weekly.
- Set alerts for nearing tier limits in Klaviyo’s dashboard.
- Delay adding new subscribers until after cleanup.
💰 Savings: Staying in a lower tier could save $100 to $500/month.
Action: Set a usage alert for 90% of your tier’s limit.
Bonus Strategy: Start an SMS Bidding War
I’m going to let you in on a dirty little secret.
Klaviyo, Postscript, and Attentive are all aggressively vying for your business.
And the main competitive strategy they have in the marketplace currently is undercutting each other.
Therefore, if you use any of the aforementioned solutions, you should absolutely shop around and get quotations from an alternative SMS provider and then go back to who you’re currently using to see if they can match (or beat) the price you’ve been quoted.
They won’t be happy, but that’s just the cost of doing business.
And, if they’re going to raise prices in times like these, let’s be candid: we need all the help we can get.
Advanced Bonus Strategy: Holdout Testing
This is not an easy experiment to conduct, but for sophisticated email marketers, it’s one of the most transformative levers you can pull in a business to reduce operational costs and gauge a better understanding of your ROI from email.
Holdout Testing is used to find the optimal email frequency to increase revenue and CLV from your customers.
Most brands I’ve worked with fall into one or two categories: they either email too much or too little.
However, most email too much, expediting churn and increasing resource costs in the business from the creative and strategic team that could be better invested elsewhere.
If you truly want to measure the lift your email marketing strategy provides, then conduct Holdout Testing over a period of 3-6 months on campaigns and see whether you’re currently overspending on the email allowance you currently pay for.
Conclusion
Lowering your Klaviyo bill doesn’t mean compromising on results.
From cleaning lists to smarter testing and training, these ten strategies help you optimize spending while driving eCommerce growth.
Pick one or two to start, monitor savings, and reinvest in campaigns that convert.
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