What’s Your Sale Strategy?
For almost two months, my inbox has been overflowing with emails from fashion brands promoting their sales. And while one could logically say it is the end of spring and time for brands to shed their seasonal merchandise, in addition to retailers needing to keep pace with their competitors, the constant barrage of promotions has been mind-numbing–even for someone who loves the thrill of buying a bargain. Some brands have gone so far as to send multiple emails daily, which is not only overkill, but annoying. The sheer volume of emails combined with the duration of the sale period has led to brands first offering 20% off, then 40% then 50% off, then 50% + another 15% on top of that…it’s just endless.
It has me asking brands: Is your sale strategy merely a race to the bottom?
Yes, the retail environment is competitive, and customers are extremely price sensitive now. But constantly resorting to sales to drive business can devalue a brand and simultaneously condition customers to wait for a discount offer, both of which will erode profitability. Here are just a few ideas of how brands can avoid looking desperate and maintain their value without constant price cutting:
1. Focus on Perceived Value, Not Price
If a brand is offering exceptional quality and craftsmanship for the price–superior materials, meticulous construction, and solid durability–then talk about how these values inherently justify a higher price point. Marketing messages should highlight a product's quality, craftsmanship, and heritage to engage clients on a more emotional level.
Consistently highlighting the brand’s Unique Selling Proposition (USP)–the aspect of a brand that makes its products truly special–is another important factor in emphasizing why a customer should be willing to pay full price or be excited by a special pricing offer rather than a full-blown sale.
For those brands in the aspirational and luxury segments, of course exclusivity can be a motivating factor for customers to purchase. Limited editions or special product drops that are released in limited quantities and/or for a limited time create urgency and desirability without discounting.
2. Strategic Alternatives to Discounts
Value-added incentives are a great way to reward loyal customers. One example, is to offer an upgraded service (e.g., not just free shipping, but expedited shipping) with a minimum purchase amount.
Instead of having a sale or outlet category, try getting rid of excess inventory through an archive sale, which creates a dedicated, distinct channel for previous collections while not tarnishing the main brand image.
Offering an elevated customer experience-in-store or online-across every brand touchpoint is essential, and that includes the post-purchase follow-up communication. Whether it’s in the form of care instructions, educational content that explains a product’s materials and production process, or an invitation to join the brand’s community, every outreach helps to strengthen customer loyalty.
Ultimately, brands that avoid the "desperate sale" trap invest heavily in building a strong brand identity, delivering exceptional value (beyond just the product itself), and engaging customers through emotion, experiences and exclusivity. Customers need to believe in a brand's intrinsic worth if they are to become part of a loyal customer base willing to pay full price.
