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Price-drop alert

A price-drop alert is an automated message that tells shoppers who looked at a product that its price has gone down.

How it works

When the store lowers a price, the email service sends a message to people who looked at the product at the old price. In Klaviyo’s price drop flow, the store sets the minimum cut, as an amount or a percentage. It also chooses whom to notify: shoppers who viewed the product, started checkout with it, or both, by default within the past 30 days. Klaviyo skips anyone who has bought the item or saw it at a lower price, and sends nothing while the item is out of stock.

The alert promotes a lower price, so it is marketing: Klaviyo doesn’t let you mark price drop emails as transactional. The rules of marketing consent apply. There is no single benchmark for the minimum cut: it depends on margin and on how often prices change. Our guide to back-in-stock and price-drop alerts covers which products to set alerts on.

Example

Example store, not client data.

The tableware shop cuts a dinner set from 600 to 540, 10% off. Its alert is set to a minimum cut of 5%. 80 shoppers viewed the set in the past 30 days without buying, and 9 of them order after the alert: 9 × 540 = 4,860. At full price the set leaves 210 of gross profit, a 35% margin; at 540 it leaves 150.

Not to be confused with

  • Sale price annotation — the old price Google may show crossed out in the ad. It is part of the ad, not a message to one person.

Right and wrong readings

  • Wrong: “The alert can say ‘was 600, now 540’ because the shopper saw 600.” Right: in the EU, the prior price in a price reduction announcement must be the lowest price charged in at least the 30 days before the cut. Countries may set exceptions, such as for products on the market for less than 30 days. Had the set sold at 500 two weeks earlier, the prior price would be 500, with no reduction to announce.
  • Wrong: “The alert earned 4,860.” Right: that is revenue at the lower price. Each buyer who would have paid 600 anyway brought 60 less gross profit.

Sources