Business Trend Recap Q1 2022
• Analysis combined insights from over 141 million global shoppers across more than 250 countries and territories powered by Klaviyo’s platform
• Customer demand remained strong with an Average Order Value increase of 14% despite volatile inflation rate
• Businesses in the Apparel & Accessories sector, in particular, are seeing consumers spend more at fewer stores, with Average Order Value up nearly 20%
Klaviyo, a unified customer platform, released its Q1 2022 edition of its Business Trend Recap, leveraging data from thousands of Klaviyo's customers for the latest insights into online shopping habits. As 2022 is proving to be increasingly marked by rising prices and inflation, Klaviyo remains committed to sharing insights aimed at helping businesses of all sizes better understand and engage with their customers.
Top Klaviyo Q1 2022 Shopping Insights
Klaviyo combined insights from over 141 million global shoppers across more than 250 countries and territories powered by the company’s platform between January 1, 2022 and March 31, 2022. This quarter’s top highlights and trends include:
Consumer spending continued to remain strong as businesses have observed that Average Order Value (AOV), the average of how much shoppers spent at checkout across the Klaviyo platform, increased 14% in Q1 of 2022 compared to Q1 of 2021.
It appears that the increased AOV during the 2021 holiday season that Klaviyo reported in January has continued its upward trend as shoppers continue to spend more on their orders.
Shoppers are spending more at fewer stores. For Apparel and Accessories, total order, or the amount of purchases made by consumers in a particular quarter, decreased by 18% while AOV increased by 19% compared with Q1 of 2021.
As more people return to in-person work and the wedding industry picks back up, jewelry sales have risen sharply with AOV up by an impressive 37% compared with Q1 of 2021.
Retailers are capitalizing on text messages to connect with customers: compared to March 2021, brands have sent 143% more SMS communication.
Businesses are leveraging social campaigns for holidays to drive awareness and promote sales. For example, companies that proactively recognized International Women’s Day in March generated approximately 6 times more in average Klaviyo Attributed Value (KAV), which is the amount of a customer's revenue that can be attributed to Klaviyo, than companies that did not acknowledge this monumental day.
Similarly, brands that recognized Black History Month in January generated 3 times more in average KAV than companies that did not, and the number of consumers purchasing from companies that mentioned Black History Month in their customer communications increased by 6% in Q1 2022 compared to Q1 2021.
“Although one might assume consumer spending would decline or be impacted by rising prices or inflation, we’re actually observing strong consumer demand - particularly in the apparel, accessories, and jewelry sectors,” said Andrew Bialecki, CEO and Co-Founder of Klaviyo. “It seems that the decline of COVID-19 cases and return to everyday activities and social events have proven to be formidable forces against inflation. Consumers are optimistic and eager to reenter society and their spending certainly reflects that.”
“As more consumers start to resume their daily lives, brands need to find ways to connect with them, in the right place, at the right time, and we’ve seen that across all generations, text messaging ranks number one as the most important method of communication,” said Josh Siegel, VP, Text Messaging, at Klaviyo. “As more brands adopt this medium, they need to utilize zero and first party data to gain trust and loyalty among new and returning customers.”
As a customer-first platform, Klaviyo's powerful data analytics capabilities enable businesses of all sizes to create personalized, one-to-one connections at internet scale—which we believe will only continue to become critical in our environment where demand for ecommerce shopping continues to surge. By applying AI and machine learning to zero and first-party customer data, the platform generates audience insights that allow customers to automate and customize relevant and personalized communications and marketing campaigns. For further ease of use, Klaviyo's software integrates with leading ecommerce platforms such as Shopify, ShopifyPlus, WooCommerce, BigCommerce, Salesforce Commerce Cloud, Magento, PrestaShop and more.