Last week I mentioned Generation Discount in my post regarding how social media has changed brand consumption. And although, I'd like to think that the growth Generation D has prompted in the daily deal site over-saturation will eventually go away, our economic fears will continue to fuel growth and we'll see this segment of social shopping continue to grow. On the one hand, as someone with a large family (read between the lines: on a budget), I have been known to purchase from a daily deal site or take advantage of a major discount (RetailMeNot is a favorite.) On the other hand, as someone who helps brands not only expand their reach, but maintain what they've acquired, the constant expectation from consumers for discounts, giveaways and freebies begins to wear on the bottom line. So what can brands do to avoid becoming a discount brand in an effort to get products and services moving off the shelf in a recession?
1. If you do want the sales boost that daily deal sites can lend, remember it is on loan to you. What does that mean, you ask? If you don't deliver A+ customer service, consider that customer walking through your door, a one hit wonder. It's a no brainer that you should ALWAYS deliver the best customer service possible...even if you are only an e-tailer discounting product...make the shopping experience super painless (as shopping should be.) It you deliver something of value, consumers will realize, discount or not, it's worth a repeat purchase.
2. Offer an incentive to shop with an app. Two shopping apps that I'm finding some value in are ShopKick and CheckPoints. Just like Foursquare, you check into a store with the app, however you also earn points for completing a task (points=rewards, like gift cards.) With Checkpoints, you earn extra points for scanning particular products. If you are the local grocer, you can use this to your advantage by offering points on products that you want customers to take note of. Via ShopKick, consumers earn rewards for checking in, retailers can also offer an exclusive discount for making a purchase AND offer extra rewards for scanning product.
3. Hold contests INfrequently. You've seen the tweets and Facebook status updates..."We're giving away..." from the same brands, each and every day. This is a short term solution to growth that sometimes tends to lend a long term problem. Then those same brands are the ones who wonder why they can't increase their click through ratio that convert to sales. Yet, there are brands who aspire to be like them because "OMG they have 30,000 followers/fans!" What does that number mean if it converts to nothing but white noise? We've desensitized our fans by constantly giving it away--contests are no longer something coveted and special. Where, then, is the incentive for the impulse buy? If you don't encourage it, don't expect it. Less contests means that there is more excitement when you do actually hold one.
4. Discount only when it is related to something personal. As we all know, causation marketing sells. But I (personally) dislike any type of "washing," albeit green, pink or any other color of the rainbow. Make it matter. If the CEO had cancer, do something for a national or local cancer charity; if they have a child with autism, partner with Autism Speaks, etc. Don't align yourself with a cause to sell product because it sounds good, do it because you can relate on a personal level...because then your customers will too.
5. Ask for the sale (at full price). Am I being too obvious with such a statement? Brands are so afraid to ask for the sale when the economy is ready to pack its non-luxury bags for a long term vacation. Stop tip-toeing around your customers, be sensitive yes, but don't avoid it totally. It is completely fine to include links to products in your Facebook status updates, on your landing page, and in your tweets as long as it is tactful and doesn't dominate your entire conversation with your customers. (I dare you to try it and see what happens.)
Do you agree with my points above? If you have other tips to offer, please tweet them @PierceMattiePR.
Posted by Shannon Nelson on September 26, 2011 9:41 AM
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