Here's how I'm segmenting customers to create personalized experiences using Klaviyo and Shopify in 2022

Before iOS 14.5 was released, it was easy to reach new customers using Facebook and Klaviyo. Back then, we were able to take our customer list, upload it to Facebook, and use the "lookalike" feature to find new prospects.

But then everything changed.

With this new version of the iPhone operating system, Apple prioritized customer privacy over personalized ads. What this means for operators is that as more and more people upgrade their iPhones to the new software, the data that advertisers like Facebook and Google used to show relevant ads to prospective customers, became scrambled...kind of like the cable boxes of the 80s and 90s...

By now we've all become accustomed to filtering out the spammy messages we receive every day.

At some point, you have to question if your message is getting through or contributing to the noise.

And if you're operating a small business then maybe you're using Shopify or are considering using it. We use Shopify to operate a retail store. To manage inventory, to process customer transactions in-store and on the web, and for its reporting.

What I mean by this, is that since these changes, the data, specifically around ROAS (return on ad spend) and Facebook's ability to target those prospects who have similar profiles as your customers, is pretty much gone.

Since then, we've scaled back our Facebook ad spend significantly so that we can recalibrate. And in doing so, we've been focused on email and sms marketing.

Consumers want personalized experiences, but only when it's done well.

So without further ado, here is our 2022 playbook for creating personalized customer experiences using Shopify and Klaviyo. (these instructions assume that you are using Klaviyo and Shopify and that they are integrated so that the data flows between systems).

1. Install an app to automate product tagging in Shopify. Currently, we are using 2 applications and are in the process of consolidating this to 1. We started off using the app Mechanic, which really helped us get started. However, we are moving to Arigato which helps by eliminating the need for these apps, plus it extends automation capabilities by offering an integration with Google Sheets, which we are using to communicate with certain vendors, specifically for products that we are drop-shipping.
2. Configure the application so that everything you want to know about the product is added as a tag to the product. These tagging apps are generally configured so that the tags are created whenever a new product is added and/or when a product gets updated. For example, we own a children's fashion boutique and the app is configured to examine the title for keywords like colors (for example, green) and style (for example, short sleeve, or tie-dye). Then we have another process that looks at the size options and adds those as tags to the product.
3. Configure the tagging app to add product tags when a customer places an order. Shopify, while not a CRM, stores your customer data and each of their orders. So if you have a customer named Jane Smith, and she places an order for a Large Green Tee Shirt, her Shopify customer profile will be tagged with the tags Green, Large, and Tee-shirt.
4. Next, you'll need to determine the categories that are relevant to your store. We have collections set up for each size and style of the store. For example, our products come in 3 size categories, Kids, Tweens, and Juniors (If you don't know how to create a new category in Shopify, there are plenty of tutorials, or you can add a comment below and I will do my best to respond quickly). Then each category has a few collections based on the season, for example, Spring 2022, or by type, for example, Sweaters, Pants, Skirts, Dresses, etc.
5. In Klaviyo, I create a Product Feed for each permutation of size-product, for example, Juniors, Kids, Tweens. We also have lists that are specific to each of the vendors as well as by type - Sweaters, Pants, Skirts, etc. Some examples would be Kids-Dresses, Junior-Joggers, or the Spring 2022 collection.

When I configure the feed, I select the option to Limit to Specific Categories. This field provides integration to Shopify, and so here is where I select the Shopify Collection that I want to display in the Klaviyo Feed. I also select items to Exclude just in case. Then, I select the Ordering and the Metric to use for this feed.

1. Next, Create a Customer Segment based on what the customer ordered, for example, "Ordered Large T-Shirts", "Ordered Green", or "Ordered Juniors". The goal here is to pair the Product Feed you defined in step #5 with the Customer Segment you're creating in this step. I recommend taking a quick stretch here because you're gonna have to configure the template before you can send that email, but don't worry.

This is how we integrate the customer tags in Shopify to Klaviyo.

1. You're almost there! The last step to send a personalized email requires you to configure the Email and the template. In Klaviyo, you can create a new campaign (though generally speaking, I will clone a recent email with a higher performance (even though the open/close rates are fake at best (since the iOS 14.5 updates, open rates are displayed at 50% which is most likely not true. The metric that we use, however, is sales)

8. Start your Email Campaign and give it a name.

9. Then, in the Send To list (let's use Ordered Juniors as the example), select 1 of the narrow audiences you created in step 6. Lastly, I exclude other audiences (for example, people who ordered recently. Then I select the option to skip recently emailed profiles so that customers really only receive 1 email per day at max.

10. Next, I add the subject line and preview text. I'm in the camp that 80-90% of emails in a DTC business model are read on mobile and so my goal here is to inform the customer, assuming that they will not open the email. If they do, that's a bonus, but for these touchpoints, I create a catchy subject line (like NEW JUNIOR STYLES IN STORE) and some additional info in the preview text (for example, we're open today from 11-3PM.

11. In the Drag and Drop editor, 1st, we're going to select a template (you can use one provided by Klaviyo, or one that is branded as a template as shown here)

12. Then, you're going to want to update the product block so that it is linked to the product feed that you configured in step 5.

Update the "Use Personalized Recommendations" setting and any configuration of the image layout, for example, maybe you want 1 column or 3.

Before you're done, write your email so that it contains the details and the message you're trying to communicate.

If all looks good, congratulations, you're ready to send. Or, if you're like me, you're going to create an A/B test.

But that's it for now.

If you need help setting up Klaviyo, Shopify, or your integrations, drop a comment below and I'll do my best to help.

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I'm Todd Kovalsky and I help startups design new products and bring them to market. I have over 10 years of experience across industries and am interested in helping you solve your complex business challenges.