Bonus Episode: How Klaviyo’s CPO Thinks DTC Brands Should Build Customer Relationships in 2025

Release Date: April 23, 2025

In this bonus episode of the DTC Podcast, host Adil engages in a deep conversation with Andrew Bielecki, the Chief Product Officer (CPO) at Klaviyo. The discussion centers around the future of customer relationship management (CRM) for direct-to-consumer (DTC) brands, the importance of loyalty, and how data-driven strategies can enhance customer interactions in the evolving ecommerce landscape of 2025.

1. Introduction to Andrew Bielecki and His E-commerce Journey

Andrew Bielecki begins by sharing his passion for Klaviyo's data-driven approach. He reflects on his entrepreneurial roots, starting with co-founding ModCloth during his graduate studies at Carnegie Mellon in 2005. ModCloth quickly scaled to over $100 million in revenue by 2011, marking Andrew's first significant foray into the ecommerce world.

Notable Quote:

“[00:00] Andrew Bielecki: What I actually fell in love with about Klaviyo is we're a data company...”

Andrew's journey continued with other venture-backed ecommerce ventures before transitioning to Meta. At Meta, he led the fintech organization, overseeing payments, risk, fraud, and commerce within WhatsApp. This role further honed his expertise in data and customer interactions. Reconnecting with Klaviyo’s CEO, Andrew recognized the company's growth and decided to join Klaviyo, seeing it as a unique opportunity to leverage data for scaling DTC brands.

Notable Quote:

“[04:14] Andrew Bielecki: ...this is something really special in terms of where we are...”

2. The Concept of B2C CRM and Its Importance

A significant portion of the conversation is dedicated to understanding B2C CRM and its distinction from traditional B2B CRM systems. Andrew explains that while B2B CRMs manage one-to-one relationships with a limited number of clients, B2C CRMs must handle interactions with thousands or even hundreds of thousands of customers simultaneously.

Notable Quote:

“[09:22] Andrew Bielecki: ...the needs are fundamentally different and more scaled for B2C.”

Klaviyo's B2C CRM integrates customer data, marketing automation, service, and analytics into a unified platform. This integration allows brands to deliver personalized, one-to-one experiences at scale without the need for individual account representatives.

Notable Quote:

“[10:45] Andrew Bielecki: ...we are a data company... B2C CRM.”

3. Enhancing Customer Experiences Through Klaviyo’s CRM

Andrew delves into how Klaviyo’s CRM redefines customer interactions by merging outbound marketing with inbound customer service. By centralizing data, brands can provide more informed and personalized support, enhancing the overall customer experience.

Notable Quote:

“[11:06] Andrew Bielecki: The first thing is like blurring the line between where outbound messaging... ends and where inbound messaging and service begins.”

He emphasizes the role of actionable analytics, where Klaviyo not only provides insights but also enables brands to act on them directly within the platform. This seamless integration helps brands transition from mere data collection to strategic action based on customer behavior and preferences.

Notable Quote:

“[14:17] Andrew Bielecki: ...having analytics that are actually actionable.”

4. The Critical Role of Customer Loyalty

Andrew highlights the often-overlooked importance of customer loyalty in the commerce space. He shares insights from his time at ModCloth, where building strong customer relationships was pivotal to their success.

Notable Quote:

“[15:42] Andrew Bielecki: ...loyalty is one of the more underappreciated and maybe underdone things in the commerce space today.”

Klaviyo’s Customer Hub is introduced as a tool that enhances customer loyalty by providing brands with a unified view of customer interactions. This tool allows brands to offer personalized experiences, such as VIP stores for top customers, thereby fostering long-term loyalty without relying solely on discounts.

Notable Quote:

“[17:00] Andrew Bielecki: ...provide a VIP store for your top 100 or top thousand customers.”

5. Navigating the 2025 Ecommerce Landscape

Adil brings up the current challenges in 2025, particularly the decline in consumer confidence. Andrew addresses these concerns by discussing the rising costs of customer acquisition and the need for brands to focus on retaining and reengaging existing customers.

Notable Quote:

“[18:51] Andrew Bielecki: ...customer acquisition cost is not coming down, in fact, the opposite appears to be true.”

He advises that in a tightening economic environment, brands should prioritize increasing the lifetime value (LTV) of their existing customers rather than solely striving for new acquisitions. Klaviyo’s tools support this strategic shift by enhancing retention and reactivation campaigns.

Notable Quote:

“[20:52] Andrew Bielecki: ...we’re able to drive value well...”

6. Success Stories Demonstrating Klaviyo’s Impact

Andrew shares several success stories that illustrate the tangible benefits Klaviyo brings to its clients:

• Dollar Shave Club: Reduced churn risk by one-third and attributed 44% of non-recurring revenue to Klaviyo in Q4 2024, achieving a 2x return on ad spend for reactivation campaigns.

• Daily Harvest: Experienced a 15% reduction in ecommerce developer hours and an 18% decrease in tech costs by switching to Klaviyo and Shopify.

• Happy Wax: Utilized Customer Hub to decrease order tracking-related support tickets by over 75%, enhancing customer satisfaction and reducing the burden on their support team.

• McConnell’s Fine Ice Creams: Achieved a 55x ROI from Klaviyo integrations and an 8x year-over-year growth in POS revenue.

Notable Quote:

“[22:46] Andrew Bielecki: ...Happy Wax... saw a little over a 75% decrease in order tracking related customer support tickets...”

These examples underscore how Klaviyo’s integrated data platform enables diverse brands to optimize operations, enhance customer relationships, and achieve significant growth.

7. Looking Ahead: Future Innovations and Commitment

In the concluding segment, Andrew reiterates Klaviyo’s commitment to being a customer-obsessed data company. He emphasizes the continuous development of tools and features that empower brands to leverage data effectively, ensuring they can navigate complex market dynamics and sustain long-term growth.

Notable Quote:

“[27:28] Andrew Bielecki: This was super fun... glad to be coming back to Shop Talk and spending time with you...”

Andrew expresses excitement about the future, highlighting the ongoing innovation at Klaviyo that aims to further enhance customer relationship strategies for DTC brands.

Final Thoughts

This episode of the DTC Podcast offers valuable insights into the future of customer relationship management for DTC brands. Andrew Bielecki’s expertise sheds light on the critical importance of data-driven CRM, personalized customer experiences, and fostering loyalty in an increasingly competitive ecommerce landscape. Klaviyo’s innovative solutions position it as a pivotal partner for brands striving to scale effectively and maintain strong, lasting relationships with their customers.

Subscribe to the DTC Podcast to stay updated with weekly discussions and tactical insights on marketing, funnels, and scaling strategies for disruptive direct-to-consumer ecommerce brands. Visit directtoconsumer.co for more information.