GiftNow’s Chief Commercial Officer, John Grech, recently offered his perspective in a contributed article in Independent Retailer on why this year’s Valentine’s Day proved that digital gifting is not a 2020-only trend but now a staple of retailers’ gifting strategies for years to come. John sheds light on the gifting lessons learned and highlights some of our Valentine’s Day gifting 2021 shopping data from GiftNow Network Insights.
Looking at the Data
For this year’s Valentine’s Day, our GiftNow retailer partners saw their total gifting sales for Valentine’s Day gifting 2021 increase by 97.5 percent compared to 2020 with their Average Order Value increased from $119 to $125, and year-over-year and purchase conversion increased by 81 percent. Some other interesting finds:
- Men bought more gifts than women at a 2:1 ratio (66% vs 33%)
- Men spent 40% more on average at $155.40 compared to $111.19 pre-tax average order value.
- Gift exchange rates showed that men were more likely to alter their product than women.
- For women, 75% kept the gift as-is, 10% exchanged completely and 15% altered it.
- For men, 64% kept as-is, 12% exchanged completely and 23% altered it.
From a retailer’s perspective, these numbers matter because the benefit of using GiftNow is that there’s no physical exchange or return as the gift isn’t shipped until the recipient has selected what they actually want. Not having to deal with returns or exchanges can be a huge cost saver, plus it puts the customer in control. After all, the recipient of the gift is also a customer now too. And, each transaction brings two new customers to the retailer, the gift giver and the gift recipient which can lead to new market opportunities.
To read more of John’s perspective on Valentine’s Day gifting 2021 in Independent Retailer click here.
Kevin Payne is the Vice President of Corporate Marketing for GiftNow