The retail market has gradually changed over the passage of time. Apparently, it does not look the way it did a few years back. The marketing strategies have changed, the way businesses and transactions were conducted has evolved, the prospect and customers are more informed, and hence, their buying patterns have altered as a result. It shows that the market has been on a journey of constant change and will remain that way for a long long time.
Research conducted by Forrester for ‘Retail Me Not’ shows that deals have a direct impact on shopping behaviors. Deals hold a certain level of influence on shoppers. Be it a holiday season, a black Friday or a Cyber Monday sale, one thing is for sure; consumers buying decisions are always based on which brands are offering the best deals and discounts on the market.
But how exactly does discount alone play a role in building up brand loyalty for your business?
How Can Discounts Affect Your Brand Loyalty?
Do you know that an average customer expects to have at least 2-3 different discount offers in hand before they make a purchasing decision? This trend is usually followed when shoppers are purchasing through mobile phones. When traditional marketing was on the rise, people used to fill in their shopping carts with their desired items and would saunter over to the shopkeeper, braced for the bargain battle that would inevitably ensue. However, with mobile advertising on the rise, discounts and sales have given that authority in the hands of the consumer and shrewdly avoided the hassle of going through a tiresome bargain every time.
Good discounts help buyers and sellers to purchase and sell products at the prices they want. And, if your brand has a better discount than other competitors in the market, then there is a high chance that your customers might drop back again to avail these discounts on other occasions. But, we often observe that even though a brand offers a greater discount, users still abandon an online shopping cart because the cost to checkout exceeds expectations. And hence, they find no problem in shifting to a different retailer who is offering a not-so-great discount but doesn’t incur additional charges.
Discounts Are Not All about Pricing
The retail market has changed for the better, giving customers the leverage to pick their own product and follow their desired bargain. Hence, brands and apps which have good discounts are becoming the talk of the town. A survey conducted by Forrester revealed that more than 71 percent of buyers prefer to gain discounts and coupons from a single destination.
This fact has opened new doors for the mobile market to create apps and websites that hold a pool of discounted products. These apps and websites then showcase some retailers by highlighting their great deals and resulting in devaluing the factor of taking brand recognition as a value for granted. An estimate shows that more than 38% of online shoppers using such applications aren’t brand conscious at all. They are also eager to test new products if they are getting the best prices to purchase them.
The end-game is that most online retail platforms such as eBay & Amazon accumulate a whole lot of information from customers in return for a simple exchange. Using a well-discounted product, they gain personal information on a customer and collect consumer feedback which is later utilized by other brands to custom-personalize their bargains, deals, and coupons as per their customer satisfaction.
So discounts aren’t all about putting the best price in front of your customers and selling the most quantities; it is also a gateway to acquire customer insight in order to understand customer expectations.
In the Wake of Discount Offers, Don’t Alienate Your Customers
Establishing brand loyalty for your specific product or service is one of the main objectives for retail marketers. However, getting the right marketing strategy in place can really become a challenging task. We are currently living in an omnichannel world and finding a way to grasp your customer attention has become a challenging task. Internet, nowadays, is not all about what glitters is gold anymore.
Hence, with the changing online environment, brands are now becoming a little crafty with their multi-channel marketing strategy. They don’t want to alienate their customers and so shouldn’t you!
Implement your discount offers in the right places within the buyer’s journey using the right moments. Triggering the people on time is the real key to success and doing all that in a tight-knit budget is the art. If you think what you are offering is unrelatable to what they are looking for, then it is better that you don’t put up the discount. Always custom-tailor your discounts so your customers can feel that is about them.
At the end of the day, it all bubbles down to one thing; how you are building the trust of your brand in the retail market. You want to reach out customers who are useful to your services and don’t go weary with what you have to offer. Competition is rough, and you need to find out the perfect way to win them.