At this time of year I hope that FloristWare users will be doing everything they can to generate Valentines pre-orders. There are a couple of reasons for this:
It Makes Life Easier
Instead of trying to take hundreds of orders over just a few days, you can spread them over a month or more. It makes it easier to buy, plan and prepare. It just makes everything run more smoothly.
It Increases Sales
As a guy I know that on Valentines Day I better have some kind of gift for my wife, and I’m a little bit stressed about it. If a florist contacts me today with the right offer I can jump on it and forget about all that stress.
If I don’t get that offer I’m going to be looking around for other ideas. Maybe I’ll decide to get her a gift certificate, a spa day, theater tickets, chocolates, etc. Maybe I’ll even go to another florist. The bottom line is that I have number in my head that I’m prepared to spend on Valentines, and once it’s gone it’s gone. Whoever gets my money first wins.
So if you are interested in generating pre-orders the next decision is how to best go about it.
There are lots of ways. Typically you want to reach out to your customers with some kind of incentive. You want this incentive to be very appealing to the customer while costing you as little as possible.
One of the most common is a discount of some kind - something like “order before January 31 and save $5”. This is a good approach - it appeals to the customer and doesn’t cost you all that much.
I have also seen some really wild promotions. One shop had a deal that when you bought a dozen roses for VDay you would receive another dozen free later in the winter.
I love that idea for being so creative and aggressive. I also worry about a couple of things. First, unless you have huge standing orders and know that you will be throwing away roses throughout the winter you’re spending money on product. Even if you are certain you’ll have extra product you’re still paying for prep and possibly delivery. This kind of promotion costs you money!
As a consumer it also feels a little weird - it leaves me thinking something like “I must really be getting screwed on these flowers if they can afford to send me more flowers for free after Valentines.” It also leaves me thinking that outside of Valentines flowers really can’t be worth very much. This might not be the kind of thing you want rattling around in your customer’s head.
If are a running some kind of points program I suggest that you promote something like double or triple points on any orders placed during the month of January.
Why is this better? It costs you less. A typical points program rewards at between 2% to 4%, so let’s use 3% as a reference and double that (our special pre-order incentive) to bring it up to six percent.
Let’s say your average Valentines order is $70. A cash discount of $5 costs you $5 real dollars in revenue. Awarding the points at 6% means a theoretical loss of $4.20 in revenue.
Why theoretical? Because a large percentage of points will never be redeemed for a variety of reasons. So, even though awarding the points means that someday you might have to give the customer $4.20 in free product, the odds are that at least a third of the points that you generate won’t ever be redeemed. That means that the $4.20 in free product becomes about $2.75. So instead of giving up $5 in real revenue right now, you may one day be giving up $2.75 in free product.
Which brings up the next point - hopefully you make a decent margin on your product! That means that the $2.75 in free product at retail actually costs you much less - maybe less than $2 - it all depends on your shop.
This is why I’m such a big fan of these programs - instead of losing $5 in revenue right now you can get the same result by being prepared to give away about half of that in free product somewhere down the road. It can make a big difference.
The next step is promoting it.
The special should be promoted on every receipt, invoice and statement that you send out. Your staff should mention it during every phone call and face-to-face interaction with a customer.
You also need to promote it even more actively. I would say you should do at least one e-mail, a postcard and, if at all possible, a phone call. FloristWare makes all of this easy.
It really does work! Below is an e-mail that was received from a user who threw a program like this together. She was happy with the results, but I think they would have been much, much better if she had started sooner!
We tried the marketing feature in FloristWare for the first time just in time for Mother's Day. We created a mailing list of 300 names and mailed out a postcard 10 days before Mother's day. . We also did a follow up about 5 days with an email reminder. You could have knocked our socks off with the response. We had 48 orders --- not responses -- but 48 orders from the postcards.
This by no means the only thing that you should be doing, but I hope it’s something that you will consider doing.
Thanks - and good luck!
P.S. There is an article that covers much of this material in the FloristWare support library.