Klaviyo EC-1: Everything You Need to Know

The Rapid Expansion of E-commerce and the Rise of Supporting Technologies

The e-commerce sector is experiencing substantial growth as retailers prioritize the development of their online presence alongside traditional physical stores. Recent data indicates a remarkable 42% market increase in 2020, coinciding with the COVID-19 pandemic, with projections exceeding $1 trillion in U.S. online spending by 2022. This represents a significant opportunity, and businesses are actively adapting to this evolving landscape.

While consumers readily recognize prominent e-commerce brands such as Amazon, Shopify, Square, and Stripe, the underlying infrastructure powering these platforms is becoming increasingly crucial for individual store success.

Introducing Klaviyo: A Leader in Email Marketing

Klaviyo, though not widely known among general consumers, has rapidly established itself as a leading standard in email marketing, effectively competing with established players like Mailchimp and Constant Contact while capitalizing on the growth of e-commerce.

Established in 2012 and headquartered in Boston, this company specializes in helping marketers personalize and automate email communications with their customer base. These automated messages, such as reminders for abandoned shopping carts or notifications about current sales, are a common experience for anyone who has provided their email address to an online retailer.

In hindsight, the prominence of email marketing seems logical, but this wasn't always the case. Previously, social media advertising and search engine marketing dominated the marketing landscape. Currently, strategies focused on owned marketing and customer experience management are gaining significant traction, and Klaviyo has transitioned from a smaller operation to a multi-billion dollar company in a relatively short period. Its trajectory reflects key trends within the modern internet economy and points toward future developments.

EC-1 Analysis Team

This EC-1 report was authored by TechCrunch writer and analyst Chris Morrison. Morrison, who also penned our previous EC-1 on Roblox, brings expertise as both a writer and independent game developer, with a focus on the video game industry and associated marketing challenges. His unique perspective as both an analyst and potential user provides valuable insight into the Klaviyo story.

Danny Crichton served as the lead editor for this package, with assistance from assistant editor Ram Iyer. Richard Dal Porto handled copy editing, and the illustrations were created by Nigel Sussman.

It is important to note that Klaviyo had no influence over the content of this analysis and was not granted advance access to the report. Morrison has no financial connections to Klaviyo and has disclosed no conflicts of interest.

EC-1 Report Overview

The Klaviyo EC-1 consists of four primary articles, totaling 9,700 words and an estimated reading time of 43 minutes. The sections are as follows:

• Part 1: The Founding Story “How Klaviyo transformed from a lifestyle business into a $4.15B email titan” (2,600 words/10 minutes) — This article details Klaviyo’s evolution from a data repository for e-commerce to a leading email marketing platform, highlighting its customer-centric approach and bootstrapping strategy in the absence of early venture capital funding.
• Part 2: Business Model and Expansion “How Klaviyo used data and no-code to transform owned marketing” (3,000 words/12 minutes) — This section examines Klaviyo’s recent growth and the increasing importance of owned marketing channels and customer experience management for marketers.
• Part 3: The Changing Landscape of E-commerce Marketing “Marketing in 2021 is emotional and not just transactional” (2,200 words/9 minutes) — To gain a comprehensive understanding of Klaviyo and the evolving martech landscape, this article explores the shift towards personalized marketing and the development of stronger emotional connections with customers beyond social media platforms.
• Part 4: Startup Growth Strategies “Drama and quirk aren’t necessary for startup success” (1,900 words/8 minutes) — This article emphasizes that founders do not need to repeat past mistakes, and Klaviyo provides valuable resources for building a successful startup, focusing on achieving product-market fit and scaling effectively.

We are continually refining the EC-1 format. Feedback, questions, and suggestions are welcome; please direct them to TechCrunch Managing Editor Danny Crichton at danny@techcrunch.com.