Klaviyo benchmarks are formulated using peer groups and industry benchmarks. In this guide, you will learn what both of these entail and how to understand the information they provide so that you can learn from benchmarking results and expand your business.
Klaviyo formulates your peer groups and industry benchmarks by using information that is stored on your organization’s contact information. It is important to make sure this information is up to date and best reflects the nature of your business. Head to How to Update Your Industry and Vertical in Klaviyo for more information.
Peer groups are a set of 100 companies that are similar to your own in size and scope. At the beginning of each new month, our Data Science Team runs an algorithm to find these companies based on a combination of your business characteristics (e.g., average item value, total revenue, year over year growth rate) and email characteristics (e.g., percent of days with a campaign sent and email revenue percentage).
When you navigate to Benchmarks, each page (Overview, Business Performance, Flow Performance, and Email Performance) will have peer group data listed so that you can compare it to your own performance. You can learn more about your peer group by expanding the How we chose your peer group dropdown at the bottom of each table.
You will see a variety of business characteristics listed that we use to compare businesses and find those that are similar to you. Your own value is listed next to these characteristics as well as the range in which your peers fall between. Typically, your value will fall within your peer group’s range; however, in some cases, you may be an outlier for a specific business characteristic. This may be due to not enough companies sharing a similar value for that characteristic.
Peer groups are chosen to allow you to compare your performance to similar companies. In each of the benchmark pages, you will see how you compare to different percentiles in your peer group. The example below shows peer group data in relation to a sample business on the business performance page.
Industry benchmarks are performance indicator data that is specific to your designated industry. For example, if you are a brand that sells makeup online, you would fall within Ecommerce, Health & Beauty.
Note that industry benchmarking data is only used within graphs, whereas peer groups are outlined in tables. However, if you have updated your industry in Klaviyo, when you navigate to Benchmarks > How we choose your peer group, you will see information around what industries your peers are in, as evident in the first image above.
If the wrong industry is associated with your account, you can edit this directly from the sentence above the table by clicking Change Industry. Once corrected, Klaviyo will be able to generate benchmarks that better serve your brand.