RUN ATTRACTIVE (BUT STILL PROFITABLE) PROMOTIONS.
Sales are rampant during this season, and while they’re undoubtedly effective in generating sales, you shouldn’t be tempted to offer discounts that eat up your profits.
This holiday season, strive to be more strategic with your discounts. You can start by personalizing your promotions. Segment your customers based on their price sensitivity and shopping habits, then offer discounts accordingly.
The following table is an example of what you can do:
Vend tip: Our customer management software makes it easy to build and manage customer lists, so you can view, sort, and group shoppers according to factors like purchase history, balance, and location.
As we mentioned in our article about discounting in retail, carrying out creative pricing or sale strategies will allow you to entice customers without killing your profits or hurting your brand.
You can, for instance, set spending thresholds on your promotions. Rather than just giving away free shipping, why not offer it once the customer spends a certain dollar amount?
Another tactic would be to have exclusive sales reserved for your most loyal customers or top spenders.
In some cases, you may not even have to “push” your discounts to customers. Have a look at what Express — an apparel retail chain — did when it revamped its promotional strategy.
In late 2014 (and continuing to 2015), Express decided to hold fewer promotional events. It also relocated its sale items from the front of the store to the back. This move encouraged shoppers to check out their top-notch items first and allowed the retailer to get more people paying full-price without alienating those looking for deals.
See: Day 9.
About Nikki Michaels
Nikki is Vend's content and copy wizard. American-born and Auckland-based, she's into reading (a lot), writing (obviously), and travelling (always).