Shopify Makes a Strategic Move by Investing $100 Million in Klaviyo
Everything You Need To Know In Less Than 50 Words
Shopify, the e-commerce platform that helps merchants worldwide build, manage and grow their businesses, has invested $100 million in Klaviyo—a leading email marketing platform for e-commerce retailers. This investment will allow both companies to work together to deliver new product innovations and customer experiences to Shopify merchants.
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Shopify is working on expanding its services to combat inflation and changes in consumer shopping practices after the pandemic. In addition, the company has been actively pursuing diversification and acquisition to help propel the platform into a more diverse e-commerce market. Shopify is not just looking to stay competitive—it wants to become the go-to solution for e-commerce websites by offering an all-in-one platform for merchants of all sizes.
Shopify’s partnership with Klaviyo is focused on expanding customer relationships and increasing customer engagement by providing a more personalized experience for customers. The integration of Klaviyo will help Shopify give a better service to its customers by allowing them to segment their subscribers and send targeted emails based on their behavior.
What Is Klaviyo?
Klaviyo, a Boston-based startup, is a marketing automation platform that helps e-commerce companies grow their business by equipping them with the essential tools they need to automate their email campaigns and increase customer engagement. The platform simplifies optimizing a company’s email marketing campaigns and seeing the results they want in real-time, with the ability to track everything from open rates to purchases.
They can also use Klaviyo’s analytics tools to understand their customers’ behavior and interests so that they can become more relevant in their inboxes. In addition, it provides marketing access to over 200 million users on social media platforms such as Facebook, Twitter, Instagram, and Pinterest.
Why Shopify’s Acquisition of Klaviyo Matters
Shopify’s acquisition of Klaviyo is designed to help e-commerce businesses drive revenue and customer loyalty. The move is part of Shopify’s strategy to provide end-to-end e-commerce solutions for its customers.
Additionally, Shopify’s acquisition of Klaviyo is a significant win for e-commerce businesses. This deal will give Shopify customers access to the best email marketing platform on the market while also giving Klaviyo users access to more than 175,000 apps and extensions within the Shopify ecosystem. Klaviyo currently manages more than 2 million email subscribers for over 1,000 brands on its platform.
Shopify’s Push to Dominate eCommerce
According to reports filed with the U.S. Securities and Exchange Commission, Shopify’s $100 million investment is its latest series of moves to increase its market dominance. In May, Shopify paid $2.1 billion for shipping logistics startup Deliverr, its largest acquisition to date. In addition, after making an equity pledge in CMS developer Sanity, Shopify this week invested in Single, a music and video app used by many Shopify merchants.
Shopify has invested heavily in recommendation and marketing technology over the past 12 months. For example, Shopify invested in and partnered with Yotpo, a provider of e-commerce marketing solutions, last September. In addition, the e-commerce behemoth has recently invested in Crossing Minds, a startup providing a platform that purportedly delivers individualized experiences without using personally identifiable information.