Retailers Get Their Heart On For Valentine's Day

ON RETAILERS GET THEIR FOR VALENTINE'S DAY Consumers are expected to spend $17 billion on everything from chocolates, flowers, and jewelry to greetings cards, clothing, and even a special gift for a pet to celebrate Valentine's Day. CONSUMERS TO SPEND $$$ ON VALENTINE'S DAY Buying something special for a significant other, family member, friend, coworker, classmate, or pet on Valentine's Day is making a comeback. Increase in consumer spending from a low point during the recession of the late-2000s. Increase in +23% +5% spending over the past five years. Average amount spent for Valentine's Day: $119.67 $122.98 $102.50 $103 $116.21 $126.03 2008 2011 2012 (Projected) 2007 2009 2010 Men plan to dramatically outspend women this year: $112.65 $51.56 $0 $50 $100 $150 SOME AGE GROUPS ARE MORE IN THE MOOD FOR VALENTINE'S DAY Here's how many of the different age groups plan on celebrating Valentine's Day: 100% 71% 71.2% 64.2% 80% 58.3% 49.4% 44% 60% 40% 20% 0% 18-24 25-34 35-44 45-54 55-64 65+ WHERE CONSUMERS SPEND MONEY ON VALENTINE'S DAY GIFTS Consumers do the bulk of their Valentine's Day shopping at the following locations: ... 40.9% |2010 | 2011 |2012 DISCOUNT STORE •***. 36,6% 37% 31.1% DEPARTMENT STORE 30.5% 33.6% 27.4% SPECIALTY STORES 25.4% ...26.8% 16.3% ONLINE 18.1% 19.3% ...* 19.6% FLORIST .... 16.8% 17.8% 9% JEWELRY STORE 9.5% 10.6% 11.1% OTHER 10.3% 9% 2.1% CATALOG 1.5% 2.2% 0% 20% 40% 60% 80% 100% TIPS FOR RETAILERS TO INCREASE VALENTINE'S DAY SALES ONLINE Product Badging • Execute Valentine's Day campaigns with eye-catching badges that highlight specific items. • Product badges should render dynamically on top of existing images so there's no need to modify any creative. • Test different product badges on search results pages, product detail pages, and other locations throughout the website. Free Shipping Offers FREE SHIPPING v Offer free shipping based on new versus returning visitors, specific thresholds based on size of order, or whether a competitor is offering the same customer benefit. BY CATEGORY TOP $14.50 AWAY FROM FREE SHIPPING .......... HEART TOP E $20.50 REG 520.50 • Use dynamic text messages to show consumers the additional spend needed to qualify for free shipping-which can boost average order value and customer loyalty. E $15.00 ...... CHECKOUT Special Sections v Create a Valentine's Day "boutique" section that features select products Shop Our merchandised as a collection of holiday-specific offers. VALENTINE'S DAY BOUTIQUE • Products in the special section can include a free gift with purchase or other FREE GIFT WITH E ALL PURCHASES added benefits that can help increase conversion. Targeting • Use customer data safely and discreetly to create a personalized shopping SHOP MEN'S SHOP WOMEN'S experience. v Other effective ways to target specific Valentine's Day products include offering the same or similar product purchased the year before or upgrading special shipping discounts based on how close the shopper is to a distribution center. SOURCES: NATIONAL RETAIL FEDERATION I EMARKETER monetate Follow @ Monetate on twitter