Some people say it with chocolates, others with flowers. It’s no secret that at Cashrewards, we like to say it with amazing offers and awesome cashback.
Valentine’s Day is a major shopping event in the retail calendar. Every February, as cupid descends from the clouds with bow and arrow in tow, millions of Australians head online and in-store in search of that special gift for that special person in their lives, whether gal-pal, bro, bestie, life-partner or lover… This year, however, predicting how much they were going to spend on that special person was a little more complicated than usual.
With the cost-of-living crisis continuing to affect consumer spending, coinciding with Australian romantics’ first restriction-free Valentine’s Day since 2020, two schools of thoughts emerged.
Australian Retailers Association (ARA) CEO Paul Zahra considered the possibility of a “freedom spending phenomenon”, with the ARA predicting that the average Australian would spend $118 on Valentine’s Day, up 6.3% from the previous year. They also predicted that the total Valentine’s Day spend would rise by 16.8%, with 18-34 year-olds likely to spend $215 million overall, and 35-49 year olds, up to $140 million(1).
$140 million. That’s a lot of love-based shopping!
However, not everyone was so optimistic. E-commerce platform Moonpig thought that the cost-of-living crisis would mean we would more likely see a reduction in spending, citing a poll where 48% of respondents said they planned to spend less on their significant other in light of inflation(2).
A hard nut to crack, but we wanted to make sure that whatever happened on and leading up to the 14th of February, our members would be spoilt for choice with incredible Valentine’s Day gift ideas and irresistible cashback deals.
Whether they spent lavishly or frugally, we wanted them to get cashback.
And they did.
We saw some solid wins on Valentine’s Day with an incredible increase of 234% in the travel category compared to last year, an increase of 110% in the liquor category, and in the beauty category an increase of 149% vs the same period last year.
We also saw an 87% growth in new members completing their first shop with Cashrewards during the campaign vs the same period last year.
Jodie Hoad, Cashrewards Client Services Senior Manager states '60% of our members plan to increase how much they spend with Cashrewards’ retailers as a result of the current financial crisis (3).' Hoad adds, 'Now more than ever, brands should be engaging in seasonal retail campaigns like our Valentine's Day campaign to engage with our members.'
While the rising cost-of-living has reduced consumer spending overall, the above results prove that engaging with key holiday periods in the retail calendar is more important than ever if you want to ensure you’re getting the most out of your marketing budgets. Proving once and for all, whether you say it with chocolates or with flowers, or cashback, the important thing is that you say it.
Interested in getting involved in our upcoming retail events? Get in touch today and talk to one of our awesome team members about how to maximise your return on ad spend.
References:
(1) Elmas, Matthew. “Valentine's Day 2023: Will the cost of living crisis kill the romance?” The New Daily, https://thenewdaily.com.au/finance/finance-news/2023/02/02/valentines-day-2023/.
(2) Pattabiraman, Rakshnna. “Mixed forecasts for this year's Valentine's Day spend.” Internet Retailing, https://internetretailing.com.au/mixed-forecasts-for-this-years-valentines-day-spend/.
(3) Cashrewards cost of living member survey - July 2022