Klaviyo gates generative AI features behind paid tiers, using feature-based differentiation and usage-based scaling to drive upgrades from its freemium plan.
- Category
Marketing Automation – Email Marketing - Employees
1,000+ - Business Model
Hybrid Model - Target Market
Small to Medium Businesses (SMBs) and Mid-Market
Pricing Model: Hybrid pricing model
Primary Value Metrics: Number of active profiles, emails sent, and SMS messages sent.
Freemium: Offers a free plan for up to 250 contacts and 500 email sends.
Discount Strategy: Provides discounts for annual subscriptions.
Add-ons: Additional SMS credits and other features can be purchased as needed.
Core Pricing Structure
Generative AI features are available exclusively in paid plans, enhancing the value proposition for subscribers.
By restricting AI capabilities to paid tiers, Klaviyo incentivizes users to upgrade from the free plan to access advanced features.
The tiered pricing model allows businesses to scale their usage and associated costs in alignment with their growth.
By aligning pricing with key usage metrics and bundling advanced AI features into paid plans, Klaviyo effectively encourages business growth and platform adoption among its users.