What will you do for Valentine’s Day this Year?
Don’t let your customers alone with this question and help them to create memories they will remember for life.
Did you know that Valentine’s Day sales in the United States reached over 21 billion USD in 2021?
We can actually see the increasing popularity for this romantic holiday across the globe. For example, Spaniards spend an average of $150 on Valentine’s Day.
Seeing these numbers, it should be no surprise that Valentine’s Day is actually the 2nd largest commercial holiday after Black Friday.
The largest part of Valentine’s Day spending goes towards experiences.
But what can marketers do in terms of promotions to leverage this day for their brand?
Let’s look at another interesting statistic.
The largest part of Valentine’s spending (in the US it was 10.6 billion USD) went towards experiences, such as a restaurant visit or a night at a hotel.
So, why not give people what they want? If people are intending to spend their Valentine’s budget on experiences, you can capture their attention by offering these experiences for free when they buy your product.
This way you can actually benefit from the massive Valentine’s Day spending, even if your product does not fall into the convential V-Day gift category.
Let’s look at some experiences you could offer.
A Romantic Night Out
- An exclusive candle light dinner
- A night in a spa & wellness hotel
- Movie tickets with popcorn for two
- Tickets to a Jazz Club
- A guided wine-tasting event
- A horse carriage ride through the city
- Tickets to a comedy show
- An escape room adventure
Now granted, due to the restrictions that are in place in many countries because of the pandemic, some of these options might not be possible in 2021. However, that does not mean that you can’t offer your customers an experience. Just turn a night out into a night in.
A Romantic Night IN
- Dinner delivery vouchers
- An online mixology class for two
- A free movie download for a romantic movie night
- Voucher for groceries for a fancy home made dinner
- A private chef
- A wine and cheese tasting gift-box
These are just a few of the many possibilities to offer your customers a great experience with their loved one.
By doing so your brand is connecting with your customers on an emotional level and leaving a lasting impression.
But it’s not only about building a loyal customer base, it’s also about receiving a good return on investment. Let’s have a look at the numbers behind these rewards.
You are probably thinking that offering an experience like that for free would cost too much and you don’t have it in your budget. We’re here to tell you otherwise.
Let’s look at movie tickets with popcorn as an example. The standard price for movie tickets with popcorn is about $30. However, the cost to your brand for bundling your product with this reward would not be $30. Depending on the quantity, redemption ratio, redemption process etc. the actual price would be somewhere between 2 to 5 Dollars. The perceived value for your customer is still $30, but the actual cost is a fraction. Sounds too good to be true? Have a look at the De’Longhi case study, where we were able to offer a free international flight for $48.
A direct reward “buy and get” is certainly a very strong incentive that can create a lot of traction. Nevertheless, if the price for your product is comparatively low (i.e. FMCG), you might only have a couple of Cents to spend per product.
In this case you could still offer high value rewards, but with an element of gamification.
By using a scratch-card, for instance, customers are rewarded with great experiences if they are able to find the right fields. With this method you are able to run with the same rewards at a much lower budget.
Another positive side effect of using an interactive gamification element in your promotions is that customers will engage longer with your brand after making a purchase.
To summarize, there are three main take-aways:
1. Recognize the opportunity
Valentine’s Day is becoming more important for people and spending for this special day are going up. Customer-centric businesses will recognize this opportunity to connect with the consumer over the 14th of February.
2. Connect emotionally
What people are looking for on Valentine’s Day is an experience. Offer your customers exactly that as a reward when they buy your product and you will build an emotional connection with them.
3. High perceived value for any budget
An experience based reward promotion can be done with any budget, no matter how small. While the method varies, the marketing message stays strong.
Of course, promotions take time to plan and prepare. So, by the time you read this you might not be able to pull an experience based reward campaign off for the 14th of February.
However, the same underlying principles can be equally effective for other holidays, such as Easter, Mother’s Day, Father’s Day and so on.
Just start planning your promotions from the consumer’s point of view and you will see your brand grow as a result.
> Find out more about why the experience economy is an opportunity for brands
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