Here we go again! It’s this time of the year where shop windows are flooded with red heart-shaped candy and greeting cards for Valentine’s Day (or else, V Day). No longer a holiday reserved only for romantic partners, these days Valentine’s Day is also about showing appreciation with gifts for family, friends, co-workers, pets and even for yourself. This couldn’t be a greater opportunity for eCommerce businesses to spur their customers into treating their loved ones.
Are you ready to cast a love spell on your target consumers with these Valentine’s Day eCommerce trends for 2022?
Biggest spenders on Valentine’s Day
Before we delve into the Valentine’s Day predictions for eCommerce trends in 2022, let's shed light on some insights.
Research from the National Retail Federation (NRF) shows that US consumers spent $21.8 billion in 2021, which marks a decline from 2020's $27.4 billion. Despite the dip in 2021, during which time the Covid-19 pandemic was in full swing, more than a quarter of consumers (38%) relied on eCommerce for their Valentine’s Day shopping. Good news is that the same study anticipates that spending for Valentine’s Day in the US will soar to a sky-high $23.9 billion in 2022. When it comes to demographics, younger millennials, aged 23 to 29, are the generational group of buyers that’s most likely to splurge on this occasion (89%), according to Bankrate. Their average spend on a significant other is approximately $266. A survey by Finder indicates that more male than female consumers were planning on buying a Valentine's Day present in 2020, with 92.4 million men admitting they were already on a hunt for gifts compared to 77.7 million women. The expenditure of Valentine's Day presents is also higher among men than women in the US, averaging $153.65 versus $77.89.
The figures don't differ much in the European region. More than half of UK men (55%) planned on spending money for a Valentine's Day gift in 2021 compared to women (45%), as another report by Finder reveals. Although UK women don't over-indulge in Valentine's Day shopping, 90% of the nation celebrating the occasion exchange gifts with their lovers, with getting flowers being the favourite activity of 30% of UK adults.
Bottom line is that with consumer expectations changing every passing year, buying online with just a flick of your finger is booming. So, think outside the box – of chocolates – this Valentine’s Day to optimise customer engagement and sales in your eCommerce store.
What consumers want on Valentine’s Day 2022
Personalisation is everything
Valentine’s Day is a huge calendar event for many online retailers and the competition is raging during this busy shopping season. Love is in the air, so your offering should be enticing enough to capture your target audience’s attention. Gone are the days when you could only impress with what a study from Statista presents as common gifts for Valentine’s Day in the US – food treats (29%), flowers and jewellery (16%), clothing (10%) and electronics (9%).
There are few gift-giving occasions as personal as Valentine’s Day, so consumers will inevitably be scouring for personalised solutions. In fact, the personalised gift market is forecasted to climb to $11.19 billion by 2025 with a CAGR (2021-2025) of 11%. You don’t have to reinvent the wheel here; just add a personalised spin to popular Valentine’s Day presents in a way that makes them unique, memorable and certain to be a keepsake for the years to come. Numerous UK-based online brands offer the top personalised gift options you can treat your beloved in 2022. Toasting your favourite person with a personalised bottle of Prosecco or champagne that has their name and picture on has never been easier with Moonpig. Abbot Lyon also boasts a wide selection of stunning handmade necklaces that can be customised with your sweetheart's name for a special, bespoke flair.
Choosing when to advertise for your personalised products is crucial to pique your customer’s interest early on, ideally a couple of weeks ahead, to create urgency and drive conversions on the big day. It’s always an easier bet to reel existing customers back in and sway them to your checkout page than acquiring new ones. Urge your target consumers to buy your personalised offers with greater joy by having discount codes across your website and sending an email to your mailing list that may give them a nudge to revisit you.
Going beyond romance
While bouquets and teddy bears normally make the rounds on Valentine’s Day, consumers will also be embracing new ways to celebrate it in 2022. Romantic love is the fundamental concept behind this heartfelt holiday and Valentine-themed promotions remain high in many gift shoppers lists. However, a successful Valentine’s Day campaign for your eCommerce site also entails thinking non-romantically. In this case, it’s important to look back at your payment data and segment your audience by category such as age, gender, location, etc. This way, you’ll figure out who is buying from you so to curate the right messaging and open up opportunities for more seasonal spending.
If you’re stumped on how to approach consumers that aren’t necessarily lovers, how about you jump on the bandwagon of Galentine’s Day trend? Formed by a mix of gal, a term used to refer to a woman or a girl, and Valentine’s Day, this occasion falls on 13th February and celebrates friendships between women. Given that men tend to splash out more on Valentine’s Day presents than women as mentioned above, you can tailor your offering to meet female consumer demand.
These days, pet ownership and celebrating Valentine's Day seem to go hand in hand, as more than a quarter (27%) of US consumers confessed they would purchase a gift for their non-human companions in 2020. Branching your eCommerce strategy to new heights is also about engaging pet owners, seeing that a total of Valentine’s Day sales of pet gifts reached a record-high $1.7 billion in 2020. From cosy pet costumes, headbands, heart-strapped leashes and bandanas to personalised food and water bowls, there’s a real opportunity for online retailers to stretch their reach into the pet market.
Crafting an inclusive brand message for specific consumer segments and designing an irresistible offer may be key to attracting customers. But you also need to ensure your potential customers aren’t turned away at the final stage of their buying journey due to poor checkout experience or lack of their payment methods of choice (more on this below).
Creating unique product sets – upselling and cross-selling
If there’s something US consumers can take pride in is their generosity on Valentine’s Day. Data from NRF reveals that $11.7 billion of the average purchase in 2021 was dedicated to significant others or spouses in that region. The rest of the spending was distributed among other family members ($3.6 billion), friends ($1.6 billion), children’s classmates and teachers ($1.4 billion), pets ($1.3 billion), and colleagues ($1.1 billion). Upselling and cross-selling can be powerful tools to generate more sales through special offers this Valentine’s Day.
A great idea of cross-selling is to feature products that match thematically (e.g. Valentine's Day and red roses) or blend similar items of higher value for maximum upselling. You probably have inventory of items in your eCommerce store that can be sold as a set. Browse your product list and see which can be paired – for example, a pillowcase can be coupled with a fleece blanket, soaps with scented candles or a wireless charger with a phone case by giving them a personalised touch. With matching items such as clothing (e.g. pyjamas, hoodies, scarves, t-shirts, etc.) and accessories (e.g. watches, headphones and keychains), you’re better placed to seal the deal with your customers and boost your revenue.
It’s worth noting that determining who you’re targeting is closely linked with figuring out how they prefer to shop and pay. According to Statista, 2021 recorded more than six billion smartphone users worldwide, while the usage of such devices to go online in the UK, as of 2020, was higher among younger social groups aged 34 to 44 (93%) and users aged 25 to 34 (92%). Such figures are cues to make your website mobile-friendly while also ensuring that the payment journey can be smoothly completed without switching to another device, i.e., desktop. Regarding payments, survey from GlobalData highlights that mobile wallets are equally the preferred payment instrument of younger generations. On a global scale, more than half (52.4%) of Millennials claim they have made a purchase via a mobile wallet in 2021, with Gen Z marching next (47.9%).
Numbers don’t lie, so the acceptance of such payment options is paramount for your profitability and customer loyalty. Working with a dedicated payment service provider will help you integrate such means of payment into your system and take your eCommerce business to the next level.
To summarise
Valentine’s Day is just around the corner. Love it or hate it, it’s a massive retail opportunity to increase sales, especially if marketed properly. Of course, Valentine’s Day requires optimisation across all touchpoints of the customer experience to get ahead of the curve by offering a seamless shopping journey. Nailing your product offering is not a silver bullet, and it’s imperative to have a robust payment infrastructure in place. Partnering up with a trusted payment service provider will support your eCommerce website with handling a sheer volume of transactions while also accepting a wide selection of payment methods.
As Covid-19 restricted high street footfall and romantic getaways overseas throughout 2021, it was eCommerce’s chance to shine and kick off 2022 with a bang. This year, it's all about shooting Cupid’s arrows right to the heart of your target consumers with personalised product sets that aren’t limited to loved-up couples, and rest assured that you'll cut through the noise of your competitors.
At emerchantpay, we can help your eCommerce brand maximise conversions and revenue around occasions like Valentine’s Day with our wealth of payment options and other services. Speak with our team of payment experts to find out more.