Danger! Holiday sales promotions may hurt your business
Internet retailers are “getting in the game” in a big way this year. Discounts abound, free shipping offers clog our inboxes, and webstores are eagerly jostling for traffic. Danger, Will Robinson, Danger!
We need to remember the difference between sales, profit, and brand building. No doubt massive discounts will get customers in the door - 4Q sales will look great. However your loss-leader traffic will amount to a Pyrrhic victory if it doesn’t lead to increased customer loyalty and long-term brand building.
Another way to put it: Will your customers respect you in the morning?
Focus on differentiation and brand. Your goal is NOT just increased sales! To win this game, you’ve got to turn today’s low-profit traffic into tomorrow’s full-price repeat customer.
Filed under: cyber monday, online retail, strategy