5 Keys to Navigating a Promo-Driven World for Retailers
Do I have the inventory?
Promotions and sales can be a great time to clear through inventory to make way for the next season (hello my new favorite bell-sleeve sweater and goodbye lace-up bodysuit). But don’t risk disappointing the customer by advertising a sale and not having sufficient goods in stock. Customer friction can be just as damaging as not having the sale to begin with.
Watch what your competitors are doing.
Is your offer compelling? Unique? Or are other retailers doing the same thing? Don’t underestimate the customer – they are savvy and will find the best deal. And if you don’t have the best deal, do you have the most unique offering? Keeping abreast of the retail landscape and thinking like a customer will give you the edge in a promo-driven market.
Am I making it clear for my customer?
Imagine seeing this in your e-mail: “$10 off your total order of $150 or more if you purchase three pieces from our new collection. Only available through our app until midnight. Use promo code: EASY.” Having to work too hard to get a deal is another point of customer friction. The more steps you make the customer go through, the more likely you will lose her along the way. Don’t play choose-your-own-sale-adventure and risk cart-abandonment.
Don’t train your customers to expect a deal.
The promotions trap is a paradox for retailers – customers want a deal, but after a certain point they expect one and the sense of urgency is lost. Being on sale all the time not only erodes your margins but is going to leave shoppers complacent – they’ll just wait for the next sale. Know when to toe the line between timing and promotion cadence to keep your offer juicy.
Are there opportunities to get creative?
Getting creative can open up new avenues for shopping and new sector of clients. Without making it too complex, think of how you can broaden your customer base. Work across channels and use the changing digital landscape to your advantage. Extra 25% by simply signing into the app? Don’t mind if I do.