|April 20, 2017||0|
When planning giveaways, discounts, coupons, website promotion events, and any other special pricing for your ecommerce company, you’re probably already counting your profits in your head. Then, you run across a blog like this one that says online promotion and online advertising just don’t work. What are you supposed to believe?
Lowering the Perceived Value
When you can lower the price of a product just to get it out the door, your customers start to wonder just how valuable that item is.
If you can’t show that your products are worth the price tag, then you haven’t done your job. Discounting just to get those items out the door will only confirm to consumers that your products were never as valuable as you said they were.
Bad First Impression
Once you’ve tanked your own prices, there’s no going back. You may not lose all those customers who made a purchase at the lower price, but they won’t buy again until you have another sale.
If no one’s buying until you lower your prices, then you might as well set the prices lower to begin with. But if you start with lower prices, what will you do when it’s time to run promotional deals?
Poor Substitute for Service
If you’re counting on lower prices or discounts on future purchases to keep your customers happy, then you’re missing a big piece of the ecommerce puzzle. Service after the sale is what makes a buyer loyal to your brand.
Instead of constantly slashing your prices, spend some time with your buyers. Provide the information they need to make their choices, and guide them toward smart purchasing decisions. They’ll return next time, full price in hand, and ready to make their next purchase.
So, yeah, you’ve gotten quite a few new customers through the door with your big price cut. Those buyers may hang around for the next time you lower your prices, so you’re cool there. Maybe you’ll catch a few more people after you raise the prices again—you know, the ones who didn’t know you offered a discount yesterday. Everything sounds great, right?
No Place for Sales and Discounting in Your Marketing?
No. But you should think wisely about how you’re using these types of promotions. If you’re only trying to get the conversion, you should be hesitant. You’ll be undercutting yourself and risk running to the bottom on discounting if you aren’t careful. If you’re hoping to build lasting relationships with your buyers, to build a brand that invokes trust and fuzzy feelings, then be careful with those promotions.