FAQ: Feb 18 appreciation discount
Learn about the appreciation discount introduced with the February 18, 2025 billing changes.
If you want answers about the billing change in general, please see our billing change FAQ.
What is the appreciation discount?
The appreciation discount helps customers keep their current number of active profiles while moving to a profile-compliant email plan at Klaviyo.
This discount was made available automatically to eligible legacy Klaviyo customers who, over time, grew their active profile count far beyond the limits of their email plan tier. To help those customers move to profile-compliant plans, it was calculated to limit the initial increase in their email plan price to no more than 25%. Changes to your plan or active profile count before the discount was activated could affect your final price.
It is not a 25% discount; it limits the initial price increase to no more than 25%.
For example, a customer on a $100/month plan might have enough profiles to require a $200/month plan. In this case, they would pay the maximum increase of 25%, so their total spend will be $125/month. In other words, they receive a $75 appreciation discount off the $200 plan list price.
The discount is applied automatically and, until further notice, continues indefinitely while your account stays on an applicable paid email plan. A downgrade below the plan price needed to keep your current discount reduces the discount, down to $0. Upgrading does not increase the discount.
Did the February 18, 2025 billing changes increase my email spend?
Klaviyo prices email plans based on active profiles, with sends included. Our pricing philosophy explains why the value lies in the customer profile.
For most Klaviyo customers, these changes had no impact on email plans. For some legacy customers, moving to a profile-compliant plan required an email spend increase of up to 25%.
For eligible legacy customers whose initial move to a profile-compliant plan required a price increase greater than 25%, Klaviyo calculated a customer-specific appreciation discount to limit that increase.
How is the appreciation discount calculated?
The appreciation discount is automatic and customer-specific. The initial estimate was the difference between the list price of a profile-compliant plan and 125% of your email plan price before the January 14, 2025 announcement. The final discount was set at activation and could be lower if your plan or active profile count had changed.
For example, a customer on a $100/month plan might have enough active profiles to require a $200/month plan. In this case, they would pay the maximum increase of 25%, bringing them to $125/month. They therefore receive a $75 appreciation discount off the $200 plan list price.
After activation, the discount stays unchanged when you upgrade. If you downgrade below the plan price needed to keep your current discount, it decreases by the amount below that threshold, down to $0.
So, using the example above, if this customer reduces their active profile count and downgrades to the $175/month email plan, that’s a $25 downgrade. Their appreciation discount would also go down by $25 (to $50). The customer’s new payment is then: $175 (plan price) - $50 (appreciation discount) = $125/month.
If instead the customer added active profiles and moved from $200 to the $225/month email plan, the appreciation discount stays at $75, for a final price of $150/month.
What do I need to do to get an appreciation discount?
Nothing! Any customers who are eligible will receive the appreciation discount automatically.
When does the appreciation discount expire?
The appreciation discount has no scheduled expiration. Until further notice, it recurs while your account stays on an applicable paid email plan. Downgrading below the plan price needed to keep your current discount reduces it, down to $0. Upgrading does not increase it.
How does the appreciation discount work if I also have other discounts?
The appreciation discount can be combined with other discounts and is applied before them. Changes to another discount do not change the appreciation discount amount, but they can change your final bill.
What happens to my appreciation discount if I upgrade?
Once your appreciation discount is activated, you keep the same dollar discount off your email plan price when you upgrade. It is applied every month. Upgrading before your first billing cycle after February 18, 2025 could reduce your initial discount. If a downgrade has already reduced your discount, upgrading does not restore the original amount.
What happens to my appreciation discount if I cancel my email plan or account and later return to Klaviyo?
If you cancel your email and profiles plan or close your account, the appreciation discount is removed. It will no longer be available if you later return to Klaviyo.
What happens to my appreciation discount if I downgrade?
The appreciation discount helps you move to a profile-compliant email plan. Once it is active, downgrading reduces the discount only if the new plan’s list price is below the minimum price needed to keep your current discount. The discount decreases by the amount below that minimum price, down to $0.
For example, a customer is on a $200/month plan with a $75 appreciation discount ($125 final price). If they reduce their active profile count and downgrade to the $175/month email plan, that’s $25 below the $200 plan price needed to keep their discount. Their appreciation discount also goes down by $25, to $50. Their payment stays at $175 (plan) - $50 (appreciation discount) = $125/month.
If the same customer first upgraded from $200 to $225/month and then returned to $200/month, the $75 discount would stay unchanged. It would only decrease below $200/month. At $125/month or less, the discount would be $0.
Note that after you downgrade, the appreciation discount does not grow back if you upgrade.
What happened if I suppressed a large number of profiles before February 18, 2025?
Suppressing active profiles before the February 18, 2025 billing changes did not increase your appreciation discount. If it meant you needed a lower-priced plan when the discount was activated, it could reduce or remove your initial discount. You should still maintain an efficient list of engaged active profiles.
What happened if I added a large number of active profiles before February 18, 2025?
Adding active profiles before February 18, 2025 did not increase the previously calculated appreciation discount. If the additional profiles required a higher-priced plan at activation, your final email plan price could be higher than estimated.
Will opting in to Auto-downgrade profiles affect my appreciation discount?
Selecting Auto-downgrade profiles does not change your discount by itself. If your plan is automatically downgraded below the price needed to keep your current discount, the discount decreases by the amount below that threshold, down to $0. The same rule applies to manual downgrades.
Did upgrading my email plan before my first billing cycle after February 18, 2025 affect my appreciation discount?
Yes. Upgrading before your first billing cycle after February 18, 2025 could lower your initial appreciation discount because the calculation used your email plan price at activation. On that first billing cycle, Klaviyo automatically moved paid accounts with more active profiles than their plan allowed to a plan that covered their active profile count.
Does the appreciation discount apply to products other than the email and profiles plan?
No. The appreciation discount only applies to the email and profiles plans.
Why did my final email plan price or appreciation discount differ from the estimates emailed on January 21 or February 4, 2025?
Your initial appreciation discount was finalized on your first billing date after February 18, 2025, using your active profile count and email plan at activation. The discount could decrease from the previously calculated amount, but it could not increase. Changes before activation could affect your discount or final bill in the following ways:
- You added active profiles and needed a higher-priced plan. Your bill could increase because the appreciation discount did not increase to cover the additional cost.
- You suppressed active profiles and needed a lower-priced plan. This could reduce or remove your appreciation discount at activation.
- Another discount expired or changed. This could change your final bill without changing the appreciation discount amount.
- You upgraded your email plan before activation. The higher plan price used in the calculation could reduce your initial appreciation discount.