While Mother’s Day spending ranks as the third highest of all retail spending, small businesses shouldn’t ignore Father’s Day revenue. Here are some stats that should encourage your business to properly promote the holiday in order to cash in on Father’s Day spending.
Here’s how the numbers break down for Father’s Day spending in 2014:
- $12.5 billion spent in total for gifts on Father’s Day.
- 76% of Americans participated in the celebration.
- The average person spent $113.80 on Father’s Day.
- The biggest spenders? Twenty-five year olds to 34 year olds spent over $150 on average, the 35 to 44 year old group spent $134, while persons age 65 and older spent the least: $72.
That’s a lot of dollars to go unnoticed by your small business. Now let’s look at what experts expect for 2015.
This year’s expectations
Total spending is expected to rise in 2015 for Father’s Day spending, increasing to a total of $13.3 billion. Where these dollars are being spent might surprise you. Over half of all sales are expected to take place on ecommerce platforms/businesses. As online purchase comfort grows and more Americans feel secure making purchases over the internet, these revenue platforms will continue to grow. Here’s how to attract Father’s Day dollars.
Optimizing your site
What some are calling mobilegeddon, the proliferation of mobile usage and increasingly higher mobile sales is creeping into all holiday spending, and Father’s Day sales is no exception. Sites that aren’t optimized for mobile usage will miss out on the 21 percent of shoppers expected to hit their mobile device to search for and buy gifts for dad. SMBs in particular need to comply with Google’s new update, which focuses on mobile-friendly searches. If you do, your business can take its share of the expected $1.5 billion spent on mobile Father’s Day shopping.
Father’s Day shoppers want a bargain purchase when it comes to their dads. Turns out, 48 percent of Father’s Day shoppers are in search of a good deal, and 36 percent could be persuaded to buy if they are offered a coupon. Half of all mobile users will use their devices to look up pricing information, and then compare these prices to the digital coupons they can get if they purchase online. Your business can make itself competitive in the Father’s Day boom by attracting shoppers on the lookout for exclusive deals and specials.
Seal the deal with free shipping
Nothing turns a potential online buyer away like high shipping costs. And nothing lures her in like free shipping. Consider the advantages of securing higher total sales revenue from free shipping, as opposed to lower sales revenue, and then run the numbers to see if this approach will work for your business.
Time it right
Most Father’s Day shoppers will start their buying frenzy about two weeks before the holiday. Only 18 percent shop a month ahead, while 30 percent buy two weeks prior, 28 percent buy the week before, and 11 percent make the purchase at the last minute. Plan your promotions in advance to attract these shoppers.
The price is right
Create promotions and offer products that meet the price window of the average shopper. In 2015, the average shopper will spend about $100, with 23 percent spending between $100 and $250, and only 10 percent splurging on gifts above $250. As you plan for your marketing strategy, consider your potential to convert about $100 per shopper.
Father’s Day holds sentimental and emotional value for shoppers. Businesses are wise to capitalize on the gift purchases shoppers plan to make. Strategize how your business can be one of the go-to options for shoppers by optimizing your site for mobile, promoting deals, offering free shipping, timing your specials and pricing your products and promotions right.