How Does Klaviyo Attribute Revenue? A Full Guide

Accurate revenue attribution is crucial for ecommerce businesses using Klaviyo. Understanding how Klaviyo attributes revenue to your email campaigns and flows allows you to optimize your marketing strategy and maximize ROI. In this comprehensive guide, we'll dive deep into Klaviyo's default attribution model, explain key concepts like conversion windows and last-touch attribution, and show you how to customize these settings to fit your unique business needs. By the end, you'll be equipped with the knowledge and best practices to effectively track and analyze your email marketing performance in Klaviyo. Let's get started!

Understanding Klaviyo's Default Revenue Attribution Model

Klaviyo uses a cooperative last touch attribution model to measure how email and SMS campaigns drive revenue. Here's how it works:

Klaviyo Attributes Revenue to the Last Clicked or Opened Email Within the Conversion Window

By default, Klaviyo attributes revenue to the last email a customer opened or clicked within a 5 day window before making a purchase. This means if a customer receives an email, clicks it, but doesn't purchase until 4 days later, the sale will be attributed to that email campaign.

Key Attribution Terms to Know

1. Conversion window: The time period after an email is opened or clicked where a conversion can be attributed to it (default is 5 days for email, 24 hours for SMS)
2. Opened email: An email is counted as opened when tracking pixels are loaded
3. Clicked email: An email is counted as clicked when a customer clicks any link in the email

Comparing Last-Touch to Other Attribution Models

Last-touch gives 100% credit to the final touchpoint before conversion. In contrast, first-touch attributes everything to the first interaction, while multi-touch spreads credit across all touchpoints. Last-touch tends to favor bottom-of-funnel campaigns. But it doesn't account for touchpoints earlier in the customer journey that moved them closer to a purchase.

A Typical Customer Journey Example

A common path to purchase might look like: Customer receives a welcome email > Opens a promotional email 3 days later > Clicks an abandoned cart email the next day > Makes a purchase. With Klaviyo's default 5-day attribution model, the abandoned cart email would receive credit, even though the earlier emails assisted in the conversion.

The key takeaway is that Klaviyo attributes revenue to the last email touchpoint within the conversion window. This last-touch model has pros and cons compared to other attribution methods.

Next up, we'll dive into how you can customize Klaviyo's attribution settings to better match your unique customer journey and purchasing behavior. You'll learn how to adjust attribution windows and split attribution across multiple touchpoints.

Customizing Klaviyo's Revenue Attribution Settings

Klaviyo's default revenue attribution settings work well for most businesses, but you may want to customize them to better fit your unique customer journey and purchasing behavior. For example, a furniture store with a longer sales cycle may benefit from extending the attribution window, while a fast-fashion brand might prefer shorter windows. Here's how to tailor Klaviyo's attribution to your needs:

Adjusting the Default Attribution Window in Klaviyo

To change the default 5-day email and 24-hour SMS attribution windows, navigate to your account settings and select "Attribution". Use the dropdown menus to set your preferred time frame for each channel, ranging from 1-60 days for email and 1-72 hours for SMS. The new settings will apply to future conversions.

Attributing Email Revenue to Opens vs Clicks

By default, Klaviyo attributes email revenue to both opens and clicks within the conversion window. But if you want to be more conservative, you can choose to only count clicks. This may be preferable if your open rates are inflated due to Apple MPP or other factors. Simply uncheck the "Opens" box in the attribution settings.

The Impact of Longer vs Shorter Attribution Windows

Extending your attribution windows will likely increase the revenue and conversions reported, as it includes purchases that occur further out from the original message. Shortening the windows will have the opposite effect. For example, moving from a 5-day to 30-day window could show email driving 20% more sales, while shifting to a 1-day window might cut attributed revenue in half.

Choosing the Right Attribution Settings for Your Business

The ideal attribution model depends on your typical customer journey and how each channel fits into your overall marketing strategy. If email is primarily for awareness while SMS drives last-minute purchases, a longer email and shorter SMS window makes sense. Looking at your campaigns and flows, consider how quickly you expect them to generate sales. Cold outreach strategies can also affect your attribution settings. Top-of-funnel messages warrant longer windows than abandoned cart follow-ups. It's also important to weigh attribution data against other metrics like LTV when assessing channel performance.

The main things to remember are that Klaviyo allows you to customize attribution windows by channel and choose whether to include email opens versus just clicks. Test out different settings to find the sweet spot for your unique business.

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Phew, you made it this far! Give yourself a pat on the back. In the next section, we'll wrap things up with some overall takeaways and best practices. But first, take a quick stretch break - all this revenue attribution talk has probably left you feeling pretty "attributed"!

Conclusions

Understanding Klaviyo's revenue attribution model is crucial for accurately measuring the impact of your email and SMS marketing efforts. Here are the key points covered in this guide:

• Klaviyo's default attribution model assigns revenue to the last email opened or clicked within the conversion window, providing a straightforward way to track the effectiveness of your messages.
• You can customize Klaviyo's attribution settings, such as adjusting the conversion window and choosing between attributing revenue to opens or clicks, to better align with your unique business needs and customer behavior.

By mastering Klaviyo's revenue attribution, you'll gain valuable insights into which messages and channels drive the most sales. Don't let poor attribution leave you in the dark about your marketing ROI - or worse, making decisions based on incomplete data! Effective lead enrichment can further optimize your marketing strategies.