As we enter the incredibly competitive holiday shopping season, the temptation for a lot of retailers is to start trying to discount their products to get traffic. In fact various studies indicate that up to 75% of goods sell at a discount.
But this would be a wrong move!
The right move for retailers is to create a differentiated experience, not a discounting experience. The reason is that, sure, discounting is effective for driving traffic and converting customers in the short-term. But there’s also the obvious downside: it squeezes the already narrow margins you’re working hard to ring up. Further in the process, you’re likely only attracting price sensitive consumers who show little brand loyalty.
Flash sale sites are becoming all the rage and driving most of the discounting craze, but would it surprise you to know that very few, if any of those sites are making a profit or even close? Further, almost 50% of consumers that subscribe to a daily deal site rarely or never engage with deals that hit their inbox. Not exactly a recipe for creating long-term customer relationships…
While it’s true that many consumers are price sensitive and use social media to find and share deals, experience is definitely more important than price. Two-thirds of shoppers across six countries surveyed by SDL say they are willing to pay a premium for a positive customer experience.
So what translates into a positive customer experience? When brands and retailers understand and cater to consumer preferences.
Here are four practical steps to delivering an experience that counts:
- Collect direct feedback from customers across several profiles to gauge the customer experience
- Leverage that data to create relevant journeys tailored to these profiles
- Tailor offers to your most appealing profiles
- Test and refine
Want more details on how to implement this strategy at your company based on the above framework? Download our eBook today!