KEY INSIGHTS FROM KLAVIYO 2024 CONSUMER SPENDING REPORT

As the holiday season approaches, brands and agencies gear up for the holiday season - a significant opportunity for sales growth. This year, amidst unique challenges like high interest rates and inflation, consumer behaviours are shifting, prompting a more cautious approach to holiday shopping. The Klaviyo email marketing report provides valuable insights to navigate these changes.

With consumers adjusting their spending habits, it's essential for marketers and agencies to adapt their communication strategies. Rather than focusing solely on broad store-wide sales, shoppers are now seeking brands that demonstrate genuine care for their needs during this festive period.

The Klaviyo 2024 Consumer Spending Report, based on feedback from over 8,500 consumers worldwide, offers invaluable insights into global shopping habits and their response to economic challenges. Here’s what you need to know to thrive during peak shopping periods like Black Friday, Cyber Monday (BFCM), and beyond.

1. Cautious Economic Outlook Doesn’t Mean Less Spending

Despite economic uncertainty, consumers are still planning to spend this holiday season. According to the Klaviyo email marketing report, 88% of shoppers indicated that inflation is affecting or will affect their spending habits. Interestingly, 61% plan to spend the same as last year, and 19% intend to spend more. This suggests that while shoppers are more mindful of their spending throughout the year, the holiday season remains a priority.

Actionable Insight: Focus on value-driven deals and discounts to capture cautious but committed buyers, especially on essentials. Use your email marketing agency to highlight these deals.

2. Early Birds Get The Sale

Timing is everything in holiday promotions. The Klaviyo report shows that over half of consumers (51%) are open to starting their shopping earlier if the right promotions are offered. Additionally, 64% of shoppers spread their spending throughout the year to take advantage of deals.

Actionable Insight: Start holiday email campaigns before the typical November rush. Offer early access to deals and create pre-holiday excitement through promotions. Use email flows in your strategy for better engagement.

3. The Role Of Inflation & Price Sensitivity

Inflation continues to impact consumer behaviour, with 88% of respondents indicating it affects their spending. Additionally, 69% are focused on finding sales, and 67% are hunting for discounts when purchasing holiday gifts. Price is the number one factor in deciding where to shop, followed by product quality.

Actionable Insight: Align promotional strategies to emphasise value without compromising quality. Consider targeted promotions, tiered discounts, and creative bundles in your Klaviyo campaigns.

4. Omnichannel Shopping Is Here To Stay

The way people shop has shifted dramatically, and the Klaviyo email marketing reinforces the importance of an omnichannel approach. Shoppers are splitting their purchases between online and in-store options. Window shopping—both in-person and online—was cited as the top source of inspiration for gift ideas.

Actionable Insight: Ensure a seamless shopping experience across multiple platforms. Optimise mobile and desktop experiences, improve in-store browsing opportunities, and integrate email marketing, SMS, and social media campaigns.

5. Younger Generations & Holiday Spending

Generational differences play a significant role in holiday shopping behaviours. Gen Z and Millennials are more likely to increase their spending compared to older generations. Social media is a key influence, with Gen Z citing it as the most important source of holiday gift inspiration.

Actionable Insight: For younger shoppers, build a strong presence on social media platforms like Instagram, TikTok, and YouTube. For older consumers, enhance the in-store experience and use traditional media channels. Collaborate with an email marketing company to reach these audiences effectively.

6. Demographic & Income Insights

Spending habits differ by age, income, and relationship status. Higher-income consumers are more likely to increase their spending on luxury goods, while lower-income consumers focus on essentials. Partnered and married consumers plan to spend more than their single counterparts, and parents tend to spend more on gifts.

Actionable Insight: Tailor messaging and promotions to specific demographic groups. Offer high-value deals for budget-conscious shoppers and luxury products for higher-income consumers.

7. Strategic Sale Approaches

Adapting sales strategies to different consumer behaviours is essential. “Buy now, pay later” (BNPL) options are increasingly popular, with 59% of respondents interested in using BNPL. The report suggests avoiding blanket discounts and instead focusing on targeted promotions.

Actionable Insight: Avoid blanket discounts and focus on targeted promotions. Offer deeper discounts on less popular items while maintaining pricing integrity on bestsellers. Utilise your email marketing expert to design these strategies.

HOW TO APPLY THESE FINDINGS TO YOUR BFCM STRATEGY

• Tip 1: Lean Into Data Early

To maximise sales opportunities, it’s crucial to leverage customer data to understand buying patterns and purchase intent. Analyse existing recency, frequency, monetary (RFM) purchases and loyalty data to tailor promotions and discounts effectively. A data-driven approach through Klaviyo email marketing can enhance your results.

• Tip 2: Optimise Value

With consumers more price-sensitive than ever before, focus on delivering genuine value. Enhance your loyalty programs with exclusive perks such as early access to holiday deals, personalised gift suggestions, and bonus points for purchases.

• Tip 3: Engage Last-Minute Shoppers

Motivate procrastinators to start their holiday shopping earlier by leaning into platforms where they are most active, such as social media. Use engaging and genuine content, and provide easy access to gift guides, personalised recommendations, or convenient wishlists.

Ready To Leverage These Insights For A Successful BFCM Season?

Apply these strategies to engage consumers early, deliver value, and ensure a seamless shopping experience. Let Brand-Aid enhance your email marketing and SMS strategies for a successful sale & holiday season!

Schedule a FREE STRATEGY CALL with us today to explore how our tailored email marketing services can drive growth for your brand this holiday season.