Given the bleak predictions about the economy, retailers have mixed feelings about the strength of Valentine’s Day sales.
More than half (54%) said they don’t anticipate strong holiday sales, according to Constant Contact’s Third Annual Small Business Valentine’s Day Outlook survey. And 39% of people said they plan to spend $25 or less on gifts this year.
But marketers plan to ramp up marketing to drives sales. Some 68% of small businesses said they plan to reach out to customers with Valentine¹s Day promotions to capture more business, up 53% last year. Nearly half (42%) of companies said they plan to use e-mail marketing to promote the offerings, followed by online marketing at 20%, flyers at 12% and direct mail at 9%. Only 7% said they would use traditional advertising, including TV, radio, or newspaper ads.
Some 42% of respondents said e-mail marketing has the greatest impact to drive sales, up from 38% in 2007, the survey found.
“Even with a slowing economy, many small businesses recognize Valentine’s Day as an opportunity to attract customers,” said Gail Goodman, CEO, Constant Contact, in a statement. “It’s not surprising that more of them are relying on cost-effective ways to market themselves to current and prospective customers this year. While tools like e-mail marketing can have a large impact on businesses during any economic climate, they are particularly important when consumers are faced with many choices for their Valentine’s Day spending.”
Online spending is expected to plan a big role this year in Valentine¹s Day sales. More than half (59%) expect online sales will increase this year. The survey was based on more than 600 respondents who were interviewed between Dec. 31 and Jan. 9.
