VDAY Thoughts
by Ellen Fruchtman, CEO
It’s a few weeks before Valentine’s Day, so I’m hoping your plans have been laid to rest. I thought this article might provide some food for thought about what this holiday means to your business and plan accordingly.
While the NRF has not presented any Valentine’s Day predictions as of this writing, suffice it to say, the industry should be seeing more of the same in 2024. In 2023, NRF Valentine’s Day predictions included words like “frugality”. Last year the NRF stated, “US shoppers will spend more than $5.5 billion on jewelry this Valentine’s Day”. Dig deeper into the predictions, and the average sale is $193.
Valentine’s Day, and its importance to the fine jewelry world, has changed over the years. Perhaps the average sale (if you omit engagement rings) has never been that earth-shattering. This is not to say that you shouldn’t recognize the holiday. What you might want to do is review the data before making decisions on your spending, targeting, and messaging.
Before making any decisions on marketing and dollars allocated for Valentine’s Day, here are some questions and things to consider.
- View the week or two before February 14 –specifically, 5 days prior, to determine if a promotional expenditure is warranted. Perhaps you want to use avenues that are not a direct cost to your budget.
- When you look at those two weeks, can you see an increase in the number of transactions?
- What was the average price point of items sold?
- Was it a Valentine’s Day purchase or something else (i.e. bridal)? Make sure you remove Engagement Ring sales.
- How did this time of year compare to the rest of 2023?
Of course, you are always looking to drive traffic and increase the average sale. Knowing your average sale and traffic is paramount to determining the right promotion and direction you want to take your marketing. For example: if your average sale is $225, then whatever promotion you’re considering should be based on moving that $225 number up. If it’s a gift with purchase, make sure the minimum number is over $300. If the number of transactions you can specifically identify as Valentine’s Day transactions, consider ideas that will be exciting enough to increase that traffic. That’s exactly what will make Valentine’s Day “Happy”.
Engagement ring sales are a different story. According to The Knot 2023 Engagement Ring Study, 20% of all engagement ring sales come happen between November through February. Continuity in your digital marketing spending from Q4 will capitalize on that local traffic. Check out what your online larger competitors are offering. It’s a competitive jungle out there.
Knowing what you should be promoting and spending your hard-earned dollars on has everything to do with digging deeper into your numbers. But, isn’t that true of your entire marketing strategy?
If you’re interested a comprehensive marketing strategy contact suits@fruchtman.com.
