As a consumer, I love a bargain and in the current climate, I've come to expect nothing less! Feeling like I've got a good deal gives me a great buzz and seeing something that's good value makes me more likely to purchase; whilst I expect a discount every once in a while, do it too often and you'll totally devalue your brand. Here's why:
At the end of last year, I purchased a present for a friend just before Christmas from a well-known online retailer (who shall remain nameless). They were offering 3 for 2 on selected products and I ended up buying a little something for myself too. (That's right, I do operate the one for me, one for you method of shopping!)
At the time, I felt like I'd got a great deal, despite spending more than I had planned, and they had sucessfully upsold and generated extra revenue. A win-win I'm sure! Since then however, I've been added to their mailing database and have been nothing short of bombarded via email ever since! And that's not the worst of it as you'll find out later on!
To give you an idea, the company has sent me 63 emails since the 1st January 2012 which is just under 1 email every 2 days. Now that's an over-communication in its' own right, so let's not get started on that one! Couple that with the fact that all except one of the emails has come with a discount and I'm starting to see a pattern. The one exception was a 3 for 2 offer, but all the rest have given me between 20% and 64% (yes you read that right) off selected lines.
So what's the problem with that?
Initially, I thought it was a bargain, a month (January) full of sale items to keep me spending. Wrong! Having continued for four and a half months, this 'marketing campaign' they're running has seriously undermined my confidence in them as a consumer because:
- Having been bombarded with emails, I've become immune to the "enticing" offers
- Having been offered a minimum of 20% off and even up to 64% off, I will never in a million years pay full price for the products again
- I no longer believe the full-price products are worth more than half of their advertised value
- Despite purchasing from the company due to my (obviously perceived) idea of their quality, I'll now go for a cheaper brand because the former no longer seem worth the money.
Let's look instead to ASOS...
I'm also on the ASOS mailing list; unlike the other unnamed company, they email me once a week (roughly) and they spend their lives telling me how great they are. Yes, they'll discount every once in a while with a flash sale to get me spending, but their whole marketing campaign just serves to make me perceive value and quality.
Some of the things they send me:
- Free postage and packing - to me this is a goodwill gesture that still saves me money
- The opportunity to upgrade to a premier account where I'll get 24 hours of purchasing before standard clients on selected lines for this seasons 'must-haves'
- Emails about the latest 'must-haves' once they're publicly released
- Fashion-led emails about changing trends that don't push product
Where ASOS has succeeded is that they have established themselves as an 'expert' in their field and whilst I may only skim-read the expertise, they reinforce themselves as a credible, quality brand. They then succeed in upselling and adding value with the occassional straight-forward discount that leaves me feeling like I've got a bargain without undermining the value of the brand!
Tips you can take from this:
- Try to add value for your customers. Whether that's with knowledge/expertise, that you have and they don't, or with added extras that make them choose you e.g. free postage. Added value supports the brand proposition and encourages purchase without undermining your bottom line.
- Try to remind users of your brand with regular communication, but make you don't "pester" them for business.
- Don't make the mistake of undervaluing yourself - a recession does not mean you have to slash prices, it means you have to get cleverer about communicating with your customers and encourage them to purchase in other ways!
An extra note: I have since remembered to unsubscribe from the enewsletter and am much happier not being bombarded!