Lovenomics: The Price of Love This Valentine’s Day, Cash In on the Hopeless Romantics
This blog post was originally featured on Business.com here: Lovenomics: The Price of Love This Valentine’s Day.
After the Blue Cross sales that dominate January, Valentine’s Day offers welcome relief to the high street. Valentine’s Day marks the end of Christmas sales and the first of the year’s seasonal hooks providing retailers with an opportunity to upsell. According to the National Retail Federation’s Valentine’s Day Consumer Spending Survey, American consumers plan to spend a total of $4.8 billion on jewelry and a survey high of nearly $2 billion on clothing this year. However, to successfully capture customers, retailers need to develop an omni-channel strategy designed to sell the right product.
Target the indecisive
For the most part, the majority of Valentine’s Day shoppers will be undecided when they begin their purchasing journey. Based on this assumption, a targeted sales approach at the point of interest (POI) and point of sale (POS) will be increasingly important. Not only do retailers need to track and understand the purchasing decision of every customer as they move between channels, but they also need to have a real-time view of the product lines, pricing and content that the competition is using. Once armed with this information, retailers can concentrate on delivering personalized ads or timely product placements that drive consumers to the checkout as they move across different channels.
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Start with search
Consumers will start their shopping journey with a search engine and will rarely scroll past the first page. So brands need to be prepared by turning Valentine’s Day product lines into searchable content. To capture a greater share of online traffic, retailers should concentrate on making relevant products easy to find by managing meta-information, optimizing media assets with the keywords that consumers are using, deploying rich text and automatically sending products to search engines.
Next generation loyalty
Retailers and restaurants can now integrate loyalty schemes into specialized smartphone apps, or maybe integrate customer communication to automatically deliver personalized ads (e.g., offers for last minute gifts for those who forget). However, to ensure success, brands need to know as much about their customers as consumers know about their products. By being able to monitor customers’ behavior, the information that they are looking at and the channels that they are using to interact with brands, loyalty programs can be used to deliver timely special offers or information at the right moment.
Valentine’s Day represents an opportunity to reinvent the in-store experience. By introducing digital signage for special product promotions, retailers can showcase a wide range of eclectic merchandise to showroom consumers. This could be done by targeting any smartphone consumers (who have allowed geo-located ads on their phones) with a personalized text message when they enter the store. Use this message to direct them to the most relevant areas for Valentine’s Day gifts or present them with a customized offer based on previous buying history.
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supermarkets have become established as the one-stop shop for lovers in a rush. Last year, Tesco, a British multinational grocery and general merchandise retailer, revealed that 85 percent of all Valentine’s Day bouquets were bought on the day itself, with three-quarters of all Valentine’s Day chocolates sold on February 14.
To tap into the last-minute attitude of panicked couples searching for a gift, retailers should have a dedicated Valentine’s Day section online and provide timely offers that come with the promise of delivery in time for Valentine’s Day. For example, BCBGMAXAZRIA is using data quality services to ensure its email list is clean and updated, keeping its sender reputation high so that when they need to reach customers during critical times like Valentine’s Day, they have confidence in their data.
Alternatively, retailers can help customers by closely managing local inventory levels to offer same-day click-and-collect initiatives or showing consumers the number of items that are currently in-stock and in-store across all channels.
Valentine’s Day may seem like a minor holiday after Christmas, but for retailers it generates billions of dollars in annual spending and presents a tremendous opportunity to boost their customer base. With these tips, retailers will hopefully be able to sweeten their sales by effectively targeting customers looking for the perfect gift for their special someone.