Summary: Data shows that 2-person households spend significantly more per transaction than any other household size and come in second in terms of spend per customer. Read on to find even more surprising insights we uncovered in QVC's customer transaction data.
QVC launched in 1986. A competitor to the Home Shopping Network, it was basically a 24-hour all-infomercial TV station that sold goods over TV and phone.
But now that Americans spend more time in apps than they do watching TV, QVC has made a pretty seamless transition into the digital world through acquisitions like its recent $2.4 billion purchase of Zulily and a content management strategy that offers a consistent brand experience across devices. They’re currently ranked 70 in the National Retail Federation’s Top 100 Retailers Table -- above Neiman Marcus, Williams-Sonoma, Chipotle, and Ikea North America.
But that’s not all that may surprise you about QVC. Their highest-spending demographic? People aged 25-34.
Young Adults Spending More
25-34 year olds spent more per transaction on QVC within the past year than any other age group. They spent $52.09/transaction versus an average of $39.33/transaction for all age brackets, and $47.67/transaction from the next highest-spending bracket, ages 45-54.
When it came to average spend per customer, 25-34 year olds were second only to the 55-64 age bracket, spending $287.40, versus the $342.81 people their parents' age shelled out.
Coupled Up and Shopping from Home
You might assume that many of these younger shoppers are single and making impulse purchases with the disposable income that usually accompanies the single life...but you’d be wrong.
Households with 2 people bought from QVC nearly twice as many times as singletons over the past year. They also spent more in total throughout the year than any other size household.
Conclusion: Don’t Count QVC Out
If you have a product and are looking to attract a young adult demographic, and especially if you’re focused on couples in particular, don’t overlook QVC as a sales and marketing channel.
Likewise, QVC should consider a line extension strategy. With their demographics and emphasis on video as a selling tool, there isn’t a significant reason why QVC couldn’t partner with a marketplace like Kickstarter or Indiegogo. Not only would they be helping new products reach their lucrative market, but they’d infuse some excitement back into their vintage brand.
Learn more about consumer spending analytics with TXN.