How to Save Money on Klaviyo Without Sacrificing Performance

Proven ways eCommerce brands can cut email marketing costs while maximizing ROI

Klaviyo is one of the most powerful email platforms for eCommerce brands—but as your list grows, so does your monthly bill. Between inflated contact counts, unused flows, and bloated agency retainers, it’s easy to overspend without realizing it.

Here’s how to lower your Klaviyo costs while keeping your email marketing strategy sharp and results-driven.

1. Clean Your Email List Monthly

Why it matters: Klaviyo charges based on the number of active profiles in your account. If you’re holding onto cold or inactive subscribers, you're paying more for contacts that aren’t converting.

How to fix it:

  • Suppress subscribers who haven’t opened or clicked in 90+ days

  • Remove soft and hard bounces regularly

  • Use sunset flows to re-engage before you remove them

  • Tag inactive subscribers and run occasional winback campaigns before suppressing

2. Segment Smarter, Send Less

Why it matters: Sending every campaign to your entire list can drive up costs and decrease performance. More emails doesn’t always mean more sales.

How to fix it:

  • Create behavior-based segments (purchased in last 30 days, clicked last campaign, VIP shoppers)

  • Use Klaviyo’s predictive analytics to find your best customers

  • Send different messages to different segments to increase relevance and reduce unsubscribes

👉 Targeted segmentation increases open and click-through rates while reducing list fatigue.

3. Audit & Streamline Your Flows

Why it matters: Many brands set up automations and forget about them, even if performance drops or messages become outdated.

How to fix it:

  • Review flow performance monthly: drop low-performing emails

  • Merge flows where appropriate (e.g., post-purchase + review requests)

  • Use conditional splits to reduce the number of emails sent

  • Set smart sending to avoid message overload

4. Trim Your Design Process

Why it matters: Heavily designed emails may look good, but they take longer to build, are more expensive if outsourced, and often don’t outperform simpler versions.

How to fix it:

  • Use clean, mobile-first templates

  • Limit the number of images and large GIFs

  • Test plain-text vs. visual-heavy emails—many times plain text wins

  • Use reusable blocks in Klaviyo to speed up builds

👉 Performance-based design reduces cost and increases conversions.

5. Use Geo-Targeting Wisely

Why it matters: If your brand doesn’t ship internationally, don’t waste your email budget sending to contacts outside your service area.

How to fix it:

  • Segment subscribers by country or region

  • Suppress international contacts if not relevant

  • Use country-specific offers to improve engagement and reduce unsubscribes

6. Leverage Predictive Analytics

Why it matters: Klaviyo’s built-in tools like Expected Next Order Date and Lifetime Value can help you send fewer but more strategic emails.

How to fix it:

  • Retarget only high-probability purchasers

  • Skip campaign sends to low LTV segments

  • Create loyalty programs for your top 10% of customers

👉 This helps you drive more revenue with fewer sends, keeping your costs in check.

7. Move Away from Monthly Retainers

Why it matters: Most agencies charge $3,000+ per month for email marketing—whether they send 2 emails or 10.

How to fix it:

  • Consider flexible services like Milhook’s Pay Per Email model

  • No contracts, no retainers—just choose what you need when you need it

  • Perfect for eCommerce brands that want high-quality emails without the overhead

8. Watch Your List Growth Tactics

Why it matters: Many brands focus on growing their list but forget about quality, leading to a larger bill and worse performance.

How to fix it:

  • Use double opt-in to keep your list clean

  • Offer lead magnets that attract the right buyers (not just freebie hunters)

  • Use exit-intent and scroll-based popups to capture engaged visitors

9. Use Smart Sending & Frequency Caps

Why it matters: Email fatigue drives unsubscribes and suppresses results. Smart sending ensures you’re not flooding inboxes and paying extra for it.

How to fix it:

  • Enable Smart Sending in Klaviyo (wait 16+ hours between sends)

  • Set weekly or monthly send caps by segment

  • Prioritize automations over manual campaigns when possible

10. Use an Email Partner Like Milhook

Milhook offers two flexible ways to scale your Klaviyo email strategy without bloated fees:

Full Service: Done-for-you email marketing — flows, campaigns, strategy, and reporting
A La Carte Pay Per Email: Just need a campaign or welcome flow? Pay once, no contracts, no retainer

Final Thoughts

Email marketing should drive profit, not inflate your overhead. By cleaning your list, segmenting smartly, optimizing flows, and switching to a flexible email partner like Milhook, you can save hundreds—or even thousands—on your Klaviyo bill without sacrificing results.

Ready to stop overpaying for email marketing?
Reach out at hello@milhook.com or visit milhook.com to get started today.

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Email A La Carte: The Flexible, Pay-Per-Email Service Built for eCommerce Brands