Podcast Summary: The Agile Brand with Greg Kihlström® — Episode #789:
Replay: What happens to your KPIs when both CLV and Customer Acquisition Costs rise?
Guest: Jamie Domenici, CMO at Klaviyo
Date: December 26, 2025
Episode Overview
This episode explores a timely challenge for marketing leaders: what brands should do when both Customer Lifetime Value (CLV) and Customer Acquisition Costs (CAC) are rising in parallel. Greg Kihlström speaks with Jamie Domenici, CMO of Klaviyo, drawing on insights from the recent Klaviyo B2C Report. They dive into omnichannel experiences, tech stack consolidation, data unification, and how to foster long-term customer value in a constantly shifting marketing landscape.
Key Discussion Points & Insights
1. The Rising Tide: CLV and CAC Both Up ([03:03]–[04:26])
- As both CAC and CLV trend higher, marketers must resist the urge to focus only on quick wins and transactional metrics.
- Jamie: "You gotta think about that from day one and not just optimize for the short term." ([03:36])
- Brands must obsess over the complete customer relationship lifecycle, not just the initial acquisition.
2. Challenges of Tracking CLV ([04:26]–[06:00])
- Despite industry talk, companies often track engagement instead of actual lifetime value.
- CMOs need to make ‘hard things easier’ with better tech and processes, capturing all touchpoints for a holistic customer view.
- Jamie: "Make it easier to do hard things...if you're just thinking about that first interaction, you're gonna be really limited and frankly like that's just bad marketing." ([04:55])
3. Martech Sprawl: The True Cost ([06:00]–[08:20])
- 60% of marketing teams juggle 6–15 tools, leading to hidden costs: licensing, lost insights, reduced productivity.
- Example: Happy Wax reduced CAC by 10% and increased SMS channel growth by 18% by consolidating tools into Klaviyo.
- Jamie: "They were able to reduce their cost of acquisition by 10% across every channel just by consolidating and having it in one place." ([07:34])
- More tools do not equal sophistication.
- Jamie: "More buttons does not equal sophistication." ([08:20])
4. Omnichannel Reality—Inside and Out ([08:20]–[11:58])
- True omnichannel means all data and interactions centralized, enabling seamless, personalized outreach.
- Campaigns can now leverage AI for time and channel optimization.
- Jamie on her experience as a busy mom: "The company that knew me was Princess Polly...able to optimize based on AI down to what I was searching for, exactly what I needed, surface up when I was free on the right channel. That dress, which I ended up buying..." ([10:45])
5. Lean Teams Benefit from Nimble Tech ([11:58]–[13:40])
- Most B2C marketing teams are lean and cannot afford time lost to complex tool ecosystems.
- Consolidation empowers teams to focus on creativity, not troubleshooting.
- Example: Laura Geller realized a 3.9x increase in SMS revenue after merging tools.
- Jamie: "Just having that all in one place changed the way they engage with their customers...created like a 3.9x return in their SMS revenue." ([13:22])
6. Data Unification without Boiling the Ocean ([16:38]–[18:55])
- 1 in 5 organizations can't piece together a complete customer profile, often paralyzed by the specter of huge data projects.
- Greg: "Sometimes, you know, [data projects] can take years...never be 100% done." ([17:23])
- Jamie recommends:
- Focus on clean list management and integration from day one.
- Automate data pipelines rather than rely on manual imports.
- Always measure the usage and impact of data, not just aggregate it.
- Jamie: "Pick a provider that allows you to bring all the data into one place, that really matters." ([18:14])
7. Balancing Acquisition vs. Retention ([18:56]–[22:39])
- Executives bet on existing customers; directors often chase new ones. Both are needed.
- Jamie: "The best thing you can do is think about data and how you're measuring it to share outcomes together...you can bridge that gap." ([19:22])
- Increasingly, brands blend these roles and unify KPIs, fostering collaboration and a focus on the entire journey.
- Jamie: "I always expose both of those teams to the same metrics...they're thinking more about this is just step one. But I'm going to build an entire relationship." ([21:17])
- On the retention team: "I don't even like to call it retention team...you're all on the customer team. It's just how the customer enters the door and then how you get the customer to stay in the house." ([22:06])
8. Agility in Leadership ([22:39]–[23:35])
- Jamie’s formula for staying agile:
- Speak to one customer per day for direct feedback.
- Stay closely connected to internal customer data.
- Experiment constantly with AI for productivity and insight.
- Jamie: "For me, it's all about being customer first. I really try and talk to a customer a day in my role and make sure that I'm staying connected to what matters most." ([22:51])
Memorable Quotes
- Jamie Domenici:
"You gotta think about that from day one and not just optimize for the short term." ([03:36]) - Jamie Domenici:
"More buttons does not equal sophistication." ([08:20]) - Jamie Domenici:
"You're all on the customer team. It's just how the customer enters the door and then how you get the customer to stay in the house." ([22:06]) - Jamie Domenici:
"For me, it's all about being customer first. I really try and talk to a customer a day in my role..." ([22:51])
Notable Moments with Timestamps
- [03:36] – Jamie’s advice on long-term thinking as both CAC and CLV rise.
- [07:34] – Case study: Happy Wax’s cost and growth gains after tool consolidation.
- [10:45] – Jamie’s personal tale of omnichannel AI-enabled marketing working for her.
- [13:22] – Laura Geller’s 3.9x SMS revenue increase from tech consolidation.
- [18:14] – The importance of automated, integrated data pipelines.
- [21:17] – Unifying acquisition and retention teams, metrics, and mindsets.
Episode Takeaways
- Rely less on vanity metrics; obsess over the complete customer journey.
- Martech consolidation is critical for efficiency, insight, and growth.
- True omnichannel is possible—and expected—when all data is unified for action.
- The lines between acquisition and retention are blurring; teams and KPIs must reflect that.
- Agility and customer-centricity require direct connection to customers and rapid application of new technologies like AI.
For further exploration: Connect with Jamie Domenici and learn more about Klaviyo through links in the episode show notes.
