You may be tempted to lower prices on your website this week to capture more business. However, this could have the opposite effect—or so the facts tell us. Most of the time, when a shop’s average order value (AOV) increases, so does the conversion rate—the ratio of shoppers that make a purchase. This may be counterintuitive, but it is true.
The average amount spent for Mother's Day has increased to $274—an increase of one-third over the past four years. This is great news for the holiday, but few flower shops have seen any of this increase. Why? Because they are not asking for it.
Most shops continue to merchandise their websites for the lower half of their customer base, which is not the segment driving the increase in spending.
In 2023, as the broader economy navigated through a rollercoaster of challenges, the affluent side of town didn’t seem to feel the bumps, keeping their spending habits strong. Interestingly, it wasn’t just luxury cars and high-end gadgets raking in the cash—flower shops also likely saw their share of the pie.
You may be tightening your belt on spending, but most of your customers are not. Don’t fall into the trap of selling out of your own pocketbook.
Studies show that upper-income spenders continue indulging in their favorite luxuries. For them, this includes not only the typical designer labels and exclusive vacations but also the simple pleasures like fresh flowers.
High-end flower shops have tapped into this trend, often offering higher-end arrangements that come with a premium price tag. This kind of luxury service keeps the cash registers ringing at a few florists, especially those that cater to the affluent segment of a shop’s customer base.
Technology also enhances this dynamic. With online ordering increasing and the ability to personalize marketing to customers, florists can more effectively reach their base. Website product selection that caters to the above-average buyer not only sustains but boosts their sales, even when spending from average income consumers is tightening.
All in all, while the general economy had its ups and downs in 2023, affluent consumers kept their spending habits robust, including on things as seemingly modest as flowers. This tale of contrasting economic realities paints a picture of a divided marketplace. Most floral customers are spending more than florists are willing to offer. This drives the consumer to other retailers for their holiday spending who are more than happy to give customers what they are looking for.