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Oasis Optimization

How to Increase Your Shopify Store’s Monthly Recurring Revenue with Klaviyo Email Marketing

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Bonus Material: Click Here for The MRR Method Cheat Sheet

It’s a dream that we all long for – growing the store’s Monthly Recurring Revenue (MRR). Do that and you’ll bring revenue stability, predictability, and increased customer lifetime value.

But how do you actually do this with email? Today I will show you the secrets of growing your MRR with email marketing that can also be implemented to provide results like this:

Klaviyo flows showing increasing MRR from email marketing

We’ll dive into the art (and science) of using the power of email marketing and how it can work wonders for your store by using segments of your audience and crafting compelling emails flows that convert customers from one-off purchasers into recurring subscription customers.

Harnessing the Power of Email Marketing To Increase MRR

Understanding how to use the power of email marketing is crucial for growing your Shopify store’s monthly recurring revenue. With Klaviyo, you have the perfect tool to unleash the potential of email marketing and convert those one off customers into recurring subscribers.

Can you do it with other email service providers? Sure – but Klaviyo is what we’re using today 🙂

By segmenting your audience based on their preferences, browsing history, and purchase behavior, you can create targeted email campaigns that truly resonate with your customers.

Through compelling email flows (also called “automations” or “series”), you can automate the process of nurturing leads and converting them into loyal subscribers.

Whether it’s a welcome series for new customers or a re-engagement campaign for inactive subscribers, email flows can guide your audience through the buyer’s journey and encourage them to stay connected with your brand.

One of the best ways to use flows to create more paying subscribers is to create a segment (more details below on that) that has anyone that has purchased the product or service you want to sell a subscription to 2 times or more.

Note: This segment will auto-update in Klaviyo, meaning you don’t have to keep manually adding people to it – set it up once and you’re good.

Next, create a flow that uses the segment you just created as a trigger. When someone is added to that segment after purchasing 2 times it will automatically trigger the flow.

Note: Add a wait time into the flow; this will depend on your product usage, but a good starting point is 15 days if you’re not sure.

The flow can be a few simple emails that revolve around one main idea: the person receiving the emails has purchased multiple times, has come back and decided they want more, and has shown that they trust your store. Now you can mention the benefits of the subscription and remind them of the fact that they clearly like what you have 🙂

If you need help to encourage subscriptions, offer incentives such as exclusive discounts, bundles, or early access to new products. Everyone loves a good deal, right?

By providing value and benefits to your subscribers, you can entice them to sign up for recurring purchases and boost your monthly recurring revenue.

Don’t forget that it’s essential to analyze and optimize your flow to ensure maximum effectiveness. Keep track of how it’s working so that you can test different offers, split test subject lines, and content for better results.

Want to get a detailed outline of this entire process along with example emails you can use in a flow to increase your monthly recurring revenue?

Segmenting Your Audience for Targeted Email Flows

Segmenting your audience for targeted email flows can greatly increase the effectiveness of your email marketing efforts. By dividing your subscriber base into smaller groups based on common characteristics or behaviors, you can deliver more personalized and relevant messages that resonate with your recipients.

One way to segment your audience is by purchasing behavior as described in the section above.

Identify those who have made multiple purchases within a specific time frame (e.g., 60 days) as potential candidates for targeted flows. These customers have shown a clear interest in your products and are more likely to be receptive to subscription offers.

This can be easily done in Klaviyo by specifying which product (or any product) and a timeframe like this:

Creating segments in Klaviyo for use with a flow to increase MRR
For a full walkthrough of each step, grab the MRR Booster Method Cheat Sheet here.

Express your gratitude for their repeated purchases and highlight that you’ve noticed their preference for your products.

Consider asking for their feedback to show that their opinion matters to you. This personalized approach will not only make your customers feel valued but also increase the chances of converting them into subscribers.

For a walk through of each step to create the segments, 2 example email templates, and how to create the flow, grab the MRR Booster Method Cheat Sheet.

Encouraging More Repeat Purchases with Incentives

In order to entice customers to ante up and get a subscription to your product or service, it’s essential to offer incentives that they just can’t resist. Because, let’s face it, a good deal just works.

So, here are a few key strategies to consider:

1. Discounts and Freebies: Offering exclusive discounts or free products to subscribers can be a great way to incentivize them. Who doesn’t love getting something for free or at a discounted price? It’s like a little treat for their loyalty.

2. Limited-time Offers: Creating a sense of urgency can be a powerful motivator. By offering time-limited incentives, such as flash sales or limited edition products, you can encourage customers to act quickly and subscribe before they miss out. FOMO (Fear Of Missing Out) can be a powerful sales tactic!

3. Loyalty Programs: Implementing a loyalty program with rewards for subscribers can be highly effective. For example, you can offer points for every purchase made through the subscription and provide them with exclusive perks like early access to sales or members-only discounts.

4. Creating Bundles: Use bundles to raise the perceived value of the subscription without discounting it. Do you have a high margin, low cost product you could add into a subscription? What else could you add to sweeten the deal?

By integrating these incentives into your email marketing campaigns, you can make your subscription program irresistible to potential customers.

Remember, the goal is to make them feel like they’re part of a club, where they can enjoy special benefits and savings.

So, get creative and start encouraging those subscriptions with enticing incentives.

Analyzing and Optimizing Email Marketing MRR Performance

Now that you have started implementing email marketing strategies to grow your ecommerce store’s monthly recurring revenue, it’s time to analyze and optimize the performance of your email.

It’s like being a detective, but instead of solving a thrilling crime, you’re solving the mystery of how to keep making those sweet MRR numbers increase over time…if this doesn’t get you excited then I don’t know what to tell you!

One key point to remember is always tracking and analyzing metrics like open rates, click-through rates, conversion rates, and unsubscribe rates. However, first and foremost you want to track the end result. How many people are converting to subscribers and are your changes affecting that.

These numbers will give you insights into what’s working and what’s not. Don’t worry; you don’t need to be a math genius to understand these metrics. It’s all about finding patterns and making smart decisions based on them. Experimentation is the name of the game.

Test different subject lines, email layouts, and call-to-action buttons to figure out what resonates best with your audience.

Try a different offer. If you started with a discount, try a bundle. If you had a bundle, try a limited time offer.

It’s like being a mad scientist, but instead of creating a monster, you’re crafting the perfect email that will lead your subscribers into buying your fantastic products.

And don’t forget to keep an eye on the competition. Check out what other successful stores are doing with their email marketing. By constantly analyzing and optimizing your email marketing performance, you can fine-tune your strategies and keep those monthly recurring revenues flowing.


So there you have it. Growing your ecommerce store’s monthly recurring revenue with Klaviyo email marketing is not rocket science.

It’s all about understanding the power of email marketing, segmenting your audience for targeted flows, creating compelling email flows, and encouraging subscriptions with incentives.

If you’re serious about increasing your MRR, this is something you or your team could implement in the coming weeks and see boosted revenue shortly after that.

If you’d like help with this or other email marketing areas, get in touch with me by scheduling a short call here.


Understanding Monthly Recurring Revenue

So you want to grow your Shopify store’s Monthly Recurring Revenue (MRR) using Klaviyo Email Marketing? Good thinking and this is a great way to do it. Monthly recurring revenue is like that elusive pot of gold at the end of the rainbow. It brings stability, predictability, and most importantly, money, to your business. Who doesn’t want that, right? But before we dive into the tactics, let’s take a moment to understand what MRR actually is. MRR is the total revenue generated from all your active subscriptions in a given month.

Think of it as a steady stream of income that keeps flowing into your bank account every month, like clockwork (minus the annoying shipping costs). By encouraging customers to sign up for your subscription program, you’re not only saving them money but also building a sustainable business model. It’s like hitting two birds with one stone, or should I say, growing a thriving business while sipping on your favorite latte. Now that we have a grasp on MRR and its benefits, it’s time to unleash the power of Klaviyo Email Marketing to skyrocket your revenue. Are you ready? Let’s do this!

Quick Note about MRR and ARR

Sometimes I’m asked about Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR). This isn’t anything complex, ARR is just 1 years worth of MRR, or:

ARR = 12 * MRR

Bonus: I put together an over the shoulder look at how to put together your own MRR Booster email flow, including creating the segments, email flow structure, and example emails. Get Access By Clicking Here

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Grab the MRR Booster Method and get the detailed step by step walk through of creating segments, creating the flow, example email templates, and more so you can implement quickly and boost your MRR.