Start PillAs we approach the bustling holiday season, understanding consumer behavior and spending trends is more crucial than ever for brands and businesses. The Klaviyo 2024 Consumer Spending Report offers valuable insights into how global shoppers are feeling and behaving in response to economic challenges, as well as their plans for holiday spending. Based on feedback from over 8,500 consumers worldwide, this report provides actionable strategies for brands to thrive during peak shopping periods like Black Friday, Cyber Monday (BFCM), and beyond. Here are the key takeaways from the report and what businesses can learn from them.
1. Cautious Economic Outlook Doesn’t Mean Less Spending
Despite a cautious outlook due to inflation and economic uncertainty, consumers are still planning to spend this holiday season. According to the Klaviyo report, while inflation is top-of-mind for 97% of shoppers, 88% of consumers indicated that inflation is either currently affecting or will affect their spending habits. Interestingly, this financial vigilance doesn’t translate to less holiday shopping—61% of respondents plan to spend the same amount as last year, while 19% plan to increase their spending.
This insight suggests that while shoppers are being more mindful of their spending throughout the year, the holiday season remains a priority for many. To capture these cautious but committed buyers, brands should focus on offering value-driven deals and discounts that meet their price sensitivity, particularly on essentials.
2. Early Birds Get the Sale
Timing is everything when it comes to holiday promotions. While traditionally, most holiday shopping occurs between October and December, 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 who spread their spending throughout the year do so to take advantage of deals.
For brands, this presents an opportunity to start holiday campaigns before the typical November rush. By offering early access to deals and creating pre-holiday excitement through promotions, businesses can encourage shoppers to buy earlier, helping smooth out sales volumes across the season.
3. The Role of Inflation and Price Sensitivity
One of the most striking findings from the Klaviyo report is how inflation continues to impact consumer behavior. The vast majority of respondents (88%) indicated that inflation would affect their current or future spending. Additionally, 69% of consumers 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 closely by product quality.
Brands should respond to this trend by aligning their promotional strategies to emphasize value without compromising on quality. Targeted promotions, tiered discounts, and creative bundles can help businesses appeal to the price-conscious shopper while maintaining profit margins.
4. Omnichannel Shopping is Here to Stay
The way people shop has shifted dramatically in recent years, and the Klaviyo 2024 Consumer Spending Report reinforces the importance of an omnichannel approach. Shoppers are splitting their purchases between online and in-store options, with nearly half of the respondents indicating that both are equally influential when deciding what to buy. Window shopping—both in-person and online—was cited as the top source of inspiration for gift ideas across all demographics.
To meet consumers where they are, brands must ensure a seamless shopping experience across multiple platforms. This means optimizing mobile and desktop experiences, improving in-store browsing opportunities, and ensuring that email, SMS, and social media campaigns work together to drive traffic to both online stores and physical locations.
5. Younger Generations and Holiday Spending
Generational differences play a significant role in holiday shopping behaviors. According to the Klaviyo report, Gen Z and Millennials are more likely to increase their holiday spending compared to older generations like Gen X and Boomers. Social media is a key influence for younger shoppers, with Gen Z citing it as the most important source of holiday gift inspiration (61%). On the other hand, Boomers and Gen Xers are more influenced by traditional channels such as in-store browsing and television.
For brands targeting younger shoppers, this highlights the importance of building a strong presence on social media platforms like Instagram, TikTok, and YouTube. Engaging, authentic content—especially influencer-driven campaigns—can help capture the attention of Gen Z and Millennials. Meanwhile, for older consumers, businesses should focus on enhancing the in-store experience and using traditional media channels to drive sales.
6. Demographic and Income Insights
Consumers’ spending habits differ not only by age but also by income and relationship status. According to Klaviyo, higher-income consumers, particularly those earning over $200,000, are more likely to increase their spending this holiday season, particularly on luxury goods like jewelry and watches. In contrast, lower-income consumers are focusing more on essentials and spreading their spending throughout the year to manage costs.
Additionally, partnered and married consumers plan to spend more than their single counterparts, and parents tend to spend more on gifts than non-parents. These findings suggest that brands should tailor their messaging and promotions to specific demographic groups, offering high-value deals for budget-conscious shoppers and luxury products for higher-income consumers.
7. Strategic Sale Approaches
The Klaviyo 2024 Consumer Spending Report highlights the importance of adapting sales strategies to different consumer behaviors. For example, “buy now, pay later” (BNPL) options are becoming increasingly popular, with 59% of respondents saying they have either used or are interested in using BNPL. Offering flexible payment plans can help brands cater to budget-conscious consumers who might otherwise be hesitant to spend on discretionary goods.
Moreover, the report suggests that businesses should avoid blanket discounts and instead focus on targeted promotions that offer value without eroding profits. Offering deeper discounts on less popular items or older stock while maintaining pricing integrity on bestsellers is a strategy that can help brands protect margins while still appealing to deal-seeking shoppers.
Conclusion: Applying These Insights to Your Holiday Strategy
The Klaviyo 2024 Consumer Spending Report paints a picture of a cautious but determined consumer base, eager to make the most of the holiday season despite economic challenges. To capitalize on these trends, brands should focus on delivering value, offering early access promotions, and creating seamless omnichannel shopping experiences. By understanding the nuances of consumer behavior—whether it’s price sensitivity, generational preferences, or the desire for flexible payment options—businesses can craft targeted strategies that not only boost holiday sales but also build lasting customer relationships.
As we head into the busiest shopping season of the year, the key to success will be striking the right balance between meeting consumers’ needs for savings and quality, while maintaining the integrity and profitability of your brand.
