3 Tips for managing sales and discounts without negatively impacting your brand.
Posted: Mon Dec 23, 2024 5:40 am
Many brands, especially in the fashion sector, are used to managing cyclical sales periods throughout the year, summer sales, winter sales, Black Friday, among others. These types of sales and discounts are subject to the behavior of the market and competitors. Increasingly, these sales periods become a “must” for our brand to keep up with the increasingly demanding and intelligent consumer. However, what happens when we go overboard with the frequency of discounts on our brand?
Discount policy of a brand
A brand's discount policy is usually governed by market policies, but also by specific brand actions that they want to promote, i.e. days on which brands decide that it is necessary or ideal to have some discounts, usually an anniversary, a mid-season sale or a flash sale are the most common. However, it is necessary to take into account that the volume of discounts we make will generate a negative impact in two areas: The average ticket of our cart and the consumption habits of our buyers.
In the first situation, being repetitive due to discounts will cause our average shopping cart to decrease constantly, which, while it implies a cash flow that will be architectural industry mailing list useful for certain occasions, will impact us in others because we sacrifice our margin at the expense of sales. In the second situation, in the case that we generate promotions or discount actions constantly, the user will stop buying “full-price” and will wait for a discount action, which will generate a direct dependence on discounts or promotions to generate sales.
Are promotions or discounts worth it?
Of course, however, we need to know how to plan them in a structured way and not have our marketing strategy depend solely on this type of action. Here are three tips to keep in mind:
Upselling or cross selling
Develop sales or discount actions that cause your user to increase their average shopping cart spending. Here, what we are looking for is for the user to receive discounts if they buy more than two products from the same category or another. This will allow the user to receive a discount and for us to increase the volume of income.
Don't use promotions as a strategy to save the company
Don't try to make ends meet with discounts or promotions. You may achieve your goal one month, but it won't have good results in the long term.
Provide extra value and take advantage to create community
Focus on finding your target audience and providing added value by understanding what type of content they want to receive, what improvements can be made to the product, listen to your consumers and work on your brand so that users value and decide to pay the price you have assigned to your products.
Do you think we can help you with your online advertising during these important dates on the calendar?
By clicking here you can access a free consultation with one of our experts, who will advise you on how to achieve the greatest impact for your project.
Discount policy of a brand
A brand's discount policy is usually governed by market policies, but also by specific brand actions that they want to promote, i.e. days on which brands decide that it is necessary or ideal to have some discounts, usually an anniversary, a mid-season sale or a flash sale are the most common. However, it is necessary to take into account that the volume of discounts we make will generate a negative impact in two areas: The average ticket of our cart and the consumption habits of our buyers.
In the first situation, being repetitive due to discounts will cause our average shopping cart to decrease constantly, which, while it implies a cash flow that will be architectural industry mailing list useful for certain occasions, will impact us in others because we sacrifice our margin at the expense of sales. In the second situation, in the case that we generate promotions or discount actions constantly, the user will stop buying “full-price” and will wait for a discount action, which will generate a direct dependence on discounts or promotions to generate sales.
Are promotions or discounts worth it?
Of course, however, we need to know how to plan them in a structured way and not have our marketing strategy depend solely on this type of action. Here are three tips to keep in mind:
Upselling or cross selling
Develop sales or discount actions that cause your user to increase their average shopping cart spending. Here, what we are looking for is for the user to receive discounts if they buy more than two products from the same category or another. This will allow the user to receive a discount and for us to increase the volume of income.
Don't use promotions as a strategy to save the company
Don't try to make ends meet with discounts or promotions. You may achieve your goal one month, but it won't have good results in the long term.
Provide extra value and take advantage to create community
Focus on finding your target audience and providing added value by understanding what type of content they want to receive, what improvements can be made to the product, listen to your consumers and work on your brand so that users value and decide to pay the price you have assigned to your products.
Do you think we can help you with your online advertising during these important dates on the calendar?
By clicking here you can access a free consultation with one of our experts, who will advise you on how to achieve the greatest impact for your project.