As an eCommerce retailer, you offer up all kinds of deals in the form of discounts, sales, and coupons. You do this because you hope it will increase your sales, right? But that’s just one part of the equation, and if it’s the only one that drives your deals, you’re missing out on other key elements of the equation. What if you started thinking of your deal offers as an essential component in boosting your brand equity? After all, the better known your brand is, the more money you can generate from your products. Using your deals as brand-boosters is a bit of an art, but any eCommerce retailer can learn how to do it.
Here are three key things to keep in mind.
1. The Right Way to Think of Your Brand: As a Promise
Retails should think about their brand for what it really is: It’s a promise to consumers. All the different elements that go into your brand – the name, the packaging, your ads and promotions, your tone, your customer service – all of that should be working together to communicate the promise of your brand. And that includes your deals and special offers. Keep that in mind as you’re creating deals. If your brand is strong, you products can command higher prices.
2. Track the Impact of Your Deals on Customers
The final arbiter of brand equity lies with consumers. It is up to them to decide if your brand fulfills its promise. This is where solid metrics and data analytics come into play. You may think your deals are conveying what you intend about your brand, but beauty is always in the eye of the beholder, which means you need to find out if consumers agree or not. If your deals don’t have the intended effect on brand equity, then it is time to re-think your deals.
3. Resist the Temptation of Constant Discounting
Your brand communicates something about the value of your products, that tricky place where quality and price meet relative to competitors. Changing the quality of your products is a big deal, but changing the price on your products is deceptively simple. This is why discounting is so easy to fall into. But constant discounting doesn’t necessarily help you build your brand equity. If you’re new, your products might not have any clear quality promise established yet, in which case discounting definitely won’t help your brand equity. The more established your brand is, the greater the risk you run of discounting having and adverse effect on your brand. Going overboard with discounting can make consumers think there must be something wrong with the products. It actually lowers the value concept—and leaves loyal customers who bought at the previously higher prices like they’ve been had. Think instead of promotions as a way to say “Thank you!” to your loyal customer base. A brand’s kindness goes a long way.
The three points listed above set the stage for creating truly brand-boosting deals. Stay tuned for more information on the nitty-gritty details of making it happen.