• by Ray Schultz , Columnist, May 3, 2023

Consumers are continuing to spend despite fears of an economic downturn. But email marketers trying to sell high-ticket items may be in for a disappointment. 

While shoppers have increased their average order value by 13%, these sales tend to be for small indulgences like mascara, serums and other health and beauty products — the so-called “lipstick effect,” according to Klaviyo’s Q1 2023 Shopping Insights.

“Even as the economy continues to fluctuate, consumers are prioritizing spending their money on small, discretionary items that bring them joy and improve their quality of life,” says Andrew Bialecki, CEO and co-founder of Klaviyo.

The Health and Beauty category saw an increase in order count by 36%, while higher-ticket jewelry saw a decrease of 15%. The order count for mascara leaped by 86% and for serums 65%. 

“For businesses, this means they have a greater opportunity to cater to the emotional needs of their customers – and provide products and experiences that resonate on a deeper level,” Bialecki says.

Klaviyo analyzed patterns from over 250 million global shoppers that it saw in its own platform from January 1-March 31, 2023. This analysis covers more than 82 countries and territories.

One other pattern that may be disconcerting to email specialists is a significant increase in the number of texts sent to consumers. SMS campaigns generated almost 28% more revenue than they did in Q1 2022. 

Klaviyo did not assess email results this time, so it appears that text is now the hot medium.

“Our demographic is interested in the here and now, not lazily checking their inboxes, and when an opportunity to grab the latest in hot footwear or apparel presents itself, they’re always ready to buy,” says Ben Tulagan, director of ecommerce at Sneaker Politics, according to the study. 

Tulagan adds: “The fast-paced, can’t-miss nature of SMS is symbiotic and allows for us to move product at full tilt and for our closest subscribers to get their hands on items that are truly special to them.”

Meanwhile, the House and Home Improvement category saw a 19% decrease in order count and was 17% lower in the average order value. But there was more spending on services. 

And with summer coming, Klaviyo is already seeing an 8% increase in average order value (AOV) in the Sporting Goods sector.. 

Bialecki concludes: "By tapping into the desires of consumers to feel good, businesses can build brand loyalty and long-term growth -- even in the most challenging economic times.”