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Consumer research
How the economy changes customer behaviour
With several significant global and regional changes in the last few years, UK
consumer behaviour is bound to evolve. Yet how exactly are people changing
how they shop online? In June 2023, we surveyed over 2,000 people across
the UK to understand just that. Keep reading to see the findings.
In this section
› Audience at a glance
› Competition for consumer attention is at an all-time high
› Insights on what marketers can do
› 3 consumer sentiments to be mindful of
3 OVERVIEW
Overview
Audience at a glance 60+ 18–29
12% 28%
Want to see how the survey respondents
compare to your own customer base?
›
18+ 50%
Gender
50% 20%
Ages
›
Living in the UK
›
A household decision maker 30–34
›
On varied income 40%
›
52% childless / 48% have 1+ child
Income
£0 –£19,999 18%
£20,000 –£39,999 31%
£40,000 –£59,999 22%
£60,000 –£79,999 13%
£80,000+ 16%
4 OVERVIEW
Competition for consumer attention
is at an all-time high
As inflation and the cost of living crisis persists, it’s no shock that UK consumers feel economic
pressure. The data shows that UK consumers are nervous and, as a result, prioritise essential purchases
over indulgent ones—which leaves your brand forced to navigate the increasingly competitive online
shopping landscape. Here are the numbers of how people feel and shop lately:
Key takeaway
On average, people feel
slightly negative about
The economic state affects how 93% of UK consumers shop 93%
the current economic state
but are disproportionately
Buying fewer items 51%
cautious with their money—
Buying less expensive items 50% so spending is down.
Buying must-haves over nice-to-haves 44%
5 OVERVIEW
Current spending vs 6 months from now
6 OVERVIEW
Most important things to consumers when shopping online
Price 70%
Quality 67%
Shipping 53%
Reviews 41%
Returns 41%
Brand 37%
Ethics 20%
Key takeaway
As a marketer, you might not be able to influence how often
your business puts products on sale—but you can educate
customers about the things they rate as most important.
That means proving product quality, clearly displaying shipping
information, and highlighting product reviews, which all support
consumers as they decide whether to make a purchase.
7 OVERVIEW
What's a marketer to do?
Hope is not lost—but it’s time to find every ounce of
marketing acumen you can muster, because building
and growing a brand is only getting more challenging.
Insight 1: Email is still a favourite
Fortunately, across the board, people are still Top messages consumers want by email
open to receiving marketing messages—and
sales provide an important opportunity to engage Loyalty programme offer 80%
people who are on the lookout for savings.
9 OVERVIEW
Insight 3: Sales attract customer attention—but aren’t the end all be all
64%
of people say regular sales
Summer sales
10 OVERVIEW
3 consumer sentiments to be mindful of amid inflation
To understand what chimes with people
under financial strain, we looked at how people
feeling nervous about the economy compare
to those feeling neutral or even positive about
BRAND EXAMPLE
their finances. Here are three statistically
significant differences:
Fewer messages yields
› They want fewer email and SMS marketing
messages than people not concerned about
higher ROI for Mixtiles
11 OVERVIEW
Build a loyal audience
Acquisition tactics and customer journey nurtures
12
Build
Reframe your mindset on
customer acquisition
The data proved what you probably already Here are some channels that a new customer
knew—consumers are buying less often due could enter your business and how you can
to economic uncertainty. This means two things tap into them:
for acquisition:
13 BUILD
Strategies that can help you acquire new customers,
based on consumers' preferences: Most popular social media channels
14 BUILD
Optimise your sign-up forms for long-term conversion
An optimised sign-up form is crucial for gathering Keeping your form short and sweet will help
important customer data. This section outlines best keep conversion high, but don’t be afraid to test An optimised sign-up
practices for creating sign-up forms that encourage a couple of additional fields. Forms with 5 or fewer
visitors to provide their details willingly. Collecting fields perform very similarly to forms (within 0.1% form is crucial for
essential customer data helps you personalise conversion) with just name and email—so
your marketing efforts more effectively. consider including product preference and phone gathering important
number, which you can use later to convert people
Want to design a high-converting sign-up form? into customers. customer data.
Here are some stats based on over 80,000
ecommerce brands using Klaviyo forms that Tip: Ask for important customer data on
can guide you. your forms.
Forms asking
The top 10%
for mobile numbers
Pop-up forms convert of signup forms
and emails convert at 85%
50% higher have submission
rates of over 2.9% of forms have two
than fly-out forms fields or less
6% vs. email-only at 2.7%
15 BUILD
EXAMPLE
“
When people subscribe, they can
click whether they’re interested
So, what extra questions might
you consider testing on your form?
Look for the marketing messages
The UK-based razor brand learned that already successfully use
the benefit of longer forms firsthand. in male or female products, or personalisation. Think automated
conversion for that. But we actually tailor and target your marketing
from as early as your welcome
haven’t seen a drop off yet. messages.
16 BUILD
Nurture your audience with
3 must-have automations
Once you’ve acquired a new subscriber or
customer, the next step is to nurture your new
contact. Automated email workflows play a
pivotal role in growing customer relationships.
› Welcome series
› Abandoned cart flow
› Post-purchase series
These workflows help engage customers, recover
abandoned carts, and encourage reviews.
Klaviyo’s advanced segmenting and clear analytics have allowed us the flexibility
to target customers with market-specific content based on shopping behaviours.
These crucial insights helped us dramatically increase our email and SMS revenues.
Kathleen Loftus, Global Digital Director
17 BUILD
Basic template
Welcome series
Overview
For a standard welcome series, ecommerce
How to make it work amid inflation: TRIGGER
brands that use Klaviyo see the most success
Nurture new subscribers who are Newsletter subscription
with a 3-email series over the course of a week.
interested in your brand but may be
unable to purchase immediately.
As you saw with Wilkinson Sword’s sign-up form
WELCOME SERIES, EMAIL #1
example, your welcome series can greatly benefit
Thanks for signing up!
from personalisation—in fact, they saw 20x
average conversion just by using tailored versions
of their welcome email based on if the subscriber
Wait 3 days
was interested in men’s or women’s razors.
›
Showcase relevant products
›
Personalise based on information
they shared in the sign-up form
WELCOME SERIES, EMAIL #3
›
Promote your social media
Check out these best-sellers.
Exit
18 BUILD
Basic template
Abandoned cart series
Overview
There is no one-size-fits-all rule for the best time
How to make it work amid inflation: TRIGGER
to send abandoned cart messages. For example,
Educate tentative buyers about the Checkout started
if you sell big-ticket items, like high-end jewellery,
benefits of your products and
the buying process likely requires more
provide financial incentives only
consideration than something smaller, like shoes. Wait 2 hours
where most effective.
19 BUILD
›
Coupons, if applicable
Basic template
Post-purchase series
Overview
Even more so than an abandoned cart flow, a
How to make it work amid inflation: TRIGGER
post-purchase flow will vary based on your brand,
Cultivate loyalty to ensure that the Order placed
product ranges, and business goals.
high costs of customer acquisition
amid inflation don’t eat away at your
This is a basic template that you can use to Wait 2 days
profit margins and bottom line.
nurture people who have made a purchase to give
product reviews and make their next purchase,
POST-PURCHASE EMAIL #1
but it’s by no means the only option for a post-
Have you joined our loyalty programme?
purchase flow.
›
Thank-you message
›
Cross-sell or up-sell with related products
›
Product review requests
POST-PURCHASE EMAIL #3
›
Loyalty programme information
Check out these related products
Exit
20 BUILD
Grow and optimise
Fine-tuning strategies for success
Once the acquisition engine is running, you have time to focus on fine-
tuning your strategies. This involves testing new tactics, investing in
what works, and optimising customer interactions. By tapping into your
existing customer base, businesses can unlock valuable insights and
foster loyalty with your customers.
21
Grow
Unlock the power of your loyal customers BRAND EXAMPLE
22 GROW
3. Tiered 5. Partnered
Pro: Customers can access different levels Pro: Reduce the costs of implementing
of benefits based on metrics such as purchase a loyalty programme.
volumes or order history.
Con: Can dilute brand value and reduce
Con: Can be difficult to implement as customers the likelihood of customers redeeming their
in lower tiers might not be motivated to engage. rewards with the same brand.
23 GROW
Grow product reviews—automatically
Template
When you’re able to lead marketing messaging
with product reviews, showcasing the positive
All components of a review
experiences of satisfied customers, you build trust are important, but people You'll want to make sure a customer has actually
with your audience—making new subscribers received and had a chance to use their purchase
more likely to make a purchase. The stats prove it: focus more on qualitative before asking for a review.
photos, than the actual flow 14 days (two weeks) after an order’s fulfilled.
This will give your customers a chance to get to
starred rating. know your products before you ask them for a
review. And it will ensure their items have actually
24 GROW
What to include
“
When you give something a 5-star review, you’re likely to recommend it to a friend.
So if we know our happy customer is going to share our brand, why not make it easier?
Ivan Monells, Co-Founder, Brava Fabrics
25 GROW
Quality reviews within days
“Having product reviews within Klaviyo is a
game changer. Previously, we used Trustpilot,
which was expensive and lacked native
integrations and customer data—which made it
hard to give customers a great experience.
With Klaviyo reviews, we collected quality,
informative reviews within days.”
Oli McLean, Email & Direct Marketing Manager
26 GROW
Market across channels with
cohesive SMS + email messages
Amid economic concerns, SMS marketing offers an effective and cost-efficient channel
to engage with customers directly. Texts have high open and engagement rates and allows
marketers to provide personalised offers, discounts, and timely updates—which can help
drive conversions and build relationships.
78% 29% that as the economy improves, SMS marketing will become
even more effective at driving sales.
of people who subscribe say they often
to SMS marketing have make purchases
Get your SMS strategy in place now for people who are
made a purchase
already interested in it, so that by the time other folks join in,
you’ve got a well oiled texting machine.
27 GROW
Learn more on the numbers behind how and why you should introduce SMS marketing into your existing channels
(if you haven’t already):
How often consumers want texts What makes people unsubscribe Top messages consumers want by SMS
11% Once a fortnight 30% Repeated by email and SMS 23% Birthday deals
13% Once a month 28% Inappropriate times 22% Loyalty programme offers
13% Less frequently than once a month 14% Only regarding sales/discounts 19% Upcoming sales
Key takeaway: SMS marketing won’t be for all your Key takeaway: Ensure your texting cadence Key takeaway: Prioritise the messages that people
subscribers—so don’t force an opt in. Let people doesn’t rise too far above once a week. Use an are more likely to be interested in, and save the
choose whether they want to engage on SMS, SMS platform that connects to your email software more nice-to-have messages like recommended
which will maximise the ROI on the cost you put so you know someone will never receive duplicate products only for your subscribers who engage
into sending messages. messages and consider them spammy. with text more often.
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When in doubt: Avoid over-marketing to
concerned customers
Amid economic crises, it’s more important than
ever to ensure your marketing channels are
in-synch. Uncoordinated messages can easily
cross the line into spam to consumers already
sensitive about spending. Unite email and SMS
in one platform to ensure your messages never
double up and lead to the dreaded unsubscribe.
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Succeed in hitting
(and exceeding) goals
Throughout this guide, we've seen examples of UK brands that
have yielded impressive results despite the economic turmoil.
Next, it's time for you to put that into action.
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