{"id":12956,"date":"2020-04-08T14:27:39","date_gmt":"2020-04-08T19:27:39","guid":{"rendered":"https:\/\/www.invespcro.com\/blog\/?p=12956"},"modified":"2020-04-08T14:27:39","modified_gmt":"2020-04-08T19:27:39","slug":"staying-on-brand-with-discounts-and-promotions","status":"publish","type":"post","link":"https:\/\/www.invespcro.com\/blog\/staying-on-brand-with-discounts-and-promotions\/","title":{"rendered":"Staying on Brand with Discounts and Promotions"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 15<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><i><span style=\"font-weight: 400;\">Disclaimer: This section is a TL;DR of the main article and it\u2019s for you if you\u2019re not interested in reading the whole article. On the other hand, if you want to read the full blog, just scroll down and you\u2019ll see the introduction.<\/span><\/i><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After many years of working as a CRO professional and with many eCommerce companies, internally, they all operate differently, but to the customer, they&#8217;re just copycats of each other.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Take two random eCommerce women&#8217;s clothing websites, remove their logos, and you can hardly distinguish between the brands. Most e=Commerce companies use price as the main differentiation factor.<\/span><\/li>\n<\/ul>\n<h2><b>What Branding Is Not<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your website is not your brand; it is just a tool that you use to help disseminate information about what you want your brand to be.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While the design aspects of a website are essential for continuity and awareness, they aren&#8217;t what make up the brand.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A brand is about the feelings that are evoked when a consumer interacts with the company, from the ad campaign to the site, to the store, to the customer service, and beyond.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>How To Define Your Brand<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your brand is your religion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">David Ogilvy dubbed the &#8220;Father of Advertising,&#8221; would say that a brand &#8220;<\/span><i><span style=\"font-weight: 400;\">is the intangible sum of product&#8217;s attributes<\/span><\/i><span style=\"font-weight: 400;\">.&#8221;\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your brand is how customers perceive your business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As a business owner, when you understand that your brand is defined by the experiences and interactions customers have had with your business, it&#8217;ll help you put the structures in place to develop a good brand you want your customers to remember.<\/span><\/li>\n<\/ul>\n<h2><b>What You Need To Know To Match Promotional Strategies and Discounts To Your Brand<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First off, understand customers love deals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Secondly, make sure you can afford to run discounts.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A grave mistake you can make for your business is rolling out a promotional or discount strategy you can&#8217;t afford and is not in line with your brand.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One thing about discounts is that it might be difficult to turn back once you decide to go down that road.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What makes a discount toxic to your brand might not be in the offer&#8217;s details but the fact you run it often.<\/span><\/li>\n<\/ul>\n<h2><b>Strategies That Add Value To Your Brand<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Differentiate promotions by customer segments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Define the metrics.<\/span><\/li>\n<\/ul>\n<h2><b>How To Differentiate Your Brand From The Competition<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If you remove the company logos of most e-commerce websites, it would not be easy to differentiate one from the other.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The sea of sameness is not only associated with women&#8217;s e-commerce sites; different brands across the globe and in virtually every industry are suffering from a crisis of differentiation.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To differentiate your brand, Khalid Saleh, co-founder of Invesp, says &#8216;your site experience needs to be engaging and unique.&#8217;\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Below are other ways to escape the sea of sameness.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Differentiating your brand positioning.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Focusing on your brand experience.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Personalizing customer experience.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pushing the limits of growth.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><b>Here&#8217;s A Longer And More Detailed Version Of The Article.<\/b><\/p>\n<hr \/>\n<p><span style=\"font-weight: 400;\">After so many years in this business, and working with e-commerce companies, in particular, it\u2019s interesting to see how they all operate quite differently. But outwardly, and to the customer, most are just copycats of each other.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Take any women\u2019s clothing category page and remove the logo &#8211; is there anything different besides the selection of items and the prices? Companies focus too much on price &#8211; because that is what they believe will help distinguish them in a crowded market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But I\u2019d argue we are struggling with monotony over anything. Visitors looking for a unique experience. Visitors are looking for progress to be made. A <a href=\"https:\/\/www.invespcro.com\/blog\/how-discounts-affect-online-consumer-buying-behavior\/\">discount sounds great<\/a>, but that\u2019s not why I\u2019ll buy the product.\u00a0<\/span><!--more--><\/p>\n<p><span style=\"font-weight: 400;\">When we discuss our e-commerce client\u2019s strategies to distinguish the brand, more than often the discussion takes a sharp left turn to discounts and promotional strategies. That\u2019s not the strategy for brand distinction. More than often, we need to refocus the discussion.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But the promotional strategy is still important and it should be on-brand. Most \u201cclaim\u201d to have a different approach. Some companies say \u201cwe don\u2019t do discounts,\u201d yet something sort of an offer will be launching almost weekly. Some companies wear discounts and promotional campaigns like a badge of honor, offering something on their site at any point in time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But what\u2019s the right approach and strategy when it comes to <a href=\"https:\/\/www.invespcro.com\/blog\/8-e-commerce-discounting-mistakes-that-can-be-toxic-to-your-brand\/\">discounts and promotions<\/a>? What is too much? And could a discount strategy actually be detrimental to a company? How can a company stay on-brand when it comes to promotional strategy? In-group identity supersedes ease and convenience.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">What branding is not<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While the design aspects of a <a href=\"https:\/\/www.invespcro.com\/blog\/how-branding-influences-purchase-decisions-infographic\/\">brand<\/a> are important for continuity and awareness, they aren\u2019t what make up the brand.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s like saying a business culture is food you offer employees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The culture is what you do, how you behave and interact, and how that food is eaten (communal, separately, what is discussed, etc).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So the logo and <a href=\"https:\/\/www.invespcro.com\/blog\/the-beginner-friendly-guide-to-designing-conversion-oriented-landing-pages\/\">design guidelines<\/a> keep your brand looking good, but a brand is more than that. A brand is about the feelings that are evoked when a consumer interacts with the company from the ad campaign to the site, to the store, to the customer service and beyond.\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-12974\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/bran.jpg\" alt=\"\" width=\"680\" height=\"453\" data-wp-pid=\"12974\" \/><\/div>\n<p><span style=\"font-weight: 400;\">A company that has since been dissolved offered accessories on their site. They had a great logo. They had a great design. But their model was basically profiting off a hidden shipping fee. That\u2019s what the brand became. That\u2019s how people perceived it. That\u2019s why interacting with the brand was not a good experience and they generally did not ever come back. The company did not survive.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a company, you can try to manage the brand image, you can try to manage what people think about you, but you really don\u2019t have any control over their feelings.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your site is not your brand, it is just a tool that you use to help disseminate information about what you want your brand to be. Your <a href=\"https:\/\/www.invespcro.com\/blog\/use-emotional-triggers-to-boost-ecommerce-sales-with-examples\/\">eCommerce site<\/a> should be built in a way that communicates what you want it to communicate to consumers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s interesting to see how people get so hung up on aesthetics, and nearly forget everything else about the brand. Logos, trademarks and taglines are elements that are part of your brand strategy, but <\/span><b>they are not your brand<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Your brand is your religion<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">David Ogilvy dubbed the \u201cFather of Advertising,\u201d would say of a brand that &#8220;<em>it is the intangible sum of product\u2019s attributes<\/em>.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Marty Neumeier, a well-known speaker and author of brand-related topics, says: \u201c<em>A brand is not a logo. A brand is not an identity. A brand is not a topic<\/em>.\u201d But rather he says: \u201c A brand is a person\u2019s gut feeling about a product, service, or organization.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, when we think of the brand, it is how your customers perceive you. Once you understand that your brand is defined by your customers according to the experience they have had with your business, you will be able to fully develop a proper brand that you want to exist in the mind of the consumers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Everything that you put out, from <a href=\"https:\/\/www.invespcro.com\/blog\/customer-loyalty-programs\/\">loyalty programs<\/a> to the type of products, to descriptions, to interactions, to discounts and promotions and everything in between has to be organized around the brand. So think about it this way, if you turn your brand into a powerful religion, people who convert to it will always disregard alternatives that may come along the way.\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img decoding=\"async\" class=\"alignnone size-full wp-image-12977\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/yellow-.jpg\" alt=\"\" width=\"680\" height=\"453\" data-wp-pid=\"12977\" \/><\/div>\n<p><span style=\"font-weight: 400;\">It may seem odd, to equate branding and religion but the similarities between the two are striking. I mean, consider the vocabulary associated with both: devotion, dedication, commitment, and faith. Just like religion, brands bind people emotionally, and they connect individuals around a shared purpose, beliefs, and values that defy logic.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Branding and religion may get categorized separately but their intersection is difficult to miss.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Matching Promotional and Discount Strategies to brands<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Given that there are different types and sizes of <a href=\"https:\/\/www.invespcro.com\/blog\/design-trends-e-commerce-websites\/\">eCommerce websites<\/a>, there are also various strategies you can employ when offering promos and discounts to your customers. But going in blindly is a costly mistake that should be avoided. A grave mistake you can do for your business is rolling out a promotional or discount strategy that is not in line with your brand. The promotional and discount strategy should be thoroughly vetted for <\/span><b>brand consistency<\/b><span style=\"font-weight: 400;\">. In fact, before we even go there, <\/span><span style=\"font-weight: 400;\">have you stopped to work out if you can actually afford promotions?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One thing about discounts is that once you decide to go down that road, it might be difficult to turn back. <\/span><span style=\"font-weight: 400;\">\u201c<\/span><i><span style=\"font-weight: 400;\">Acquired through a discount, can only be kept through a discount<\/span><\/i><span style=\"font-weight: 400;\">,\u201d says <\/span><a href=\"https:\/\/www.elasticpath.com\/\"><span style=\"font-weight: 400;\">Elastic Path<\/span><\/a><span style=\"font-weight: 400;\"> Ecommerce Strategist, <\/span><a href=\"https:\/\/twitter.com\/lindabustos\"><span style=\"font-weight: 400;\">Linda Bustos<\/span><\/a><span style=\"font-weight: 400;\">. She continues:\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img decoding=\"async\" class=\"alignnone size-full wp-image-12972\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/Copy-of-Linda-1.jpg\" alt=\"\" width=\"680\" height=\"340\" data-wp-pid=\"12972\" \/><\/div>\n<p><span style=\"font-weight: 400;\">After asking Invesp\u2019s Project Manager, <\/span><a href=\"https:\/\/www.linkedin.com\/in\/kayahatice\/\"><span style=\"font-weight: 400;\">Hatice Kaya<\/span><\/a><span style=\"font-weight: 400;\">, how they help different businesses match their promotional and discount strategies to their brands, she suggested:\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12958\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/Hatice-1.jpg\" alt=\"\" width=\"680\" height=\"383\" data-wp-pid=\"12958\" \/><\/div>\n<p><span style=\"font-weight: 400;\">We all know that customers love deals, so it is up to businesses to strategically use discounts ina way that benefits their brands. So <\/span><span style=\"font-weight: 400;\">a useful rule of thumb is that everything about your promos and discounts should only add and <\/span><b>not<\/b><span style=\"font-weight: 400;\"> diminish the value of your brand.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, it\u2019s unfortunate that we keep on seeing businesses, of all sizes, rolling out discount strategies that become toxic to their brand value. Sometimes what makes a discount work against your brand is not because it is not aligned to your brand, but because you are offering it frequently.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Linda cautions the extensive use of discounts:<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12959\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/Linda.jpg\" alt=\"\" width=\"680\" height=\"340\" data-wp-pid=\"12959\" \/><\/div>\n<p><span style=\"font-weight: 400;\">Macy\u2019s is a perfect example of a mega eCommerce store that got hit hard \u2013 to the point of <\/span><a href=\"https:\/\/www.washingtonpost.com\/business\/2020\/02\/04\/macys-is-closing-125-stores-laying-off-2000-employees\/\"><span style=\"font-weight: 400;\">shutting down one-fifth of their US stores<\/span><\/a><span style=\"font-weight: 400;\"> \u2013 because of a culture of never-ending discounts. Their brand became associated with promotions to the extent that it was unthinkable for customers to purchase without a discount.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Just for a moment, let\u2019s just assume that you find yourself in a situation where your customers are now programmed to only purchase when a product is on discount. How will you convince them to buy the products at full-price?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Well, in such a case, Linda suggests:\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12960\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/Lindaa.jpg\" alt=\"\" width=\"680\" height=\"340\" data-wp-pid=\"12960\" \/><\/div>\n<p><span style=\"font-weight: 400;\">But can you hold the same stance even if you\u2019re in the middle of a crisis that <\/span><span style=\"font-weight: 400;\">no one knows how it will play out? Linda again:\u00a0<\/span><\/p>\n<blockquote><p><span style=\"font-weight: 400;\">\u201c<\/span><i><span style=\"font-weight: 400;\">We\u2019ve seen in the past even the strongest discount holdouts eventually cave in the face of a tough economy. Abercrombie and Fitch, for example, couldn\u2019t keep full price through the \u201908-\u201909 recession. That brand is barely hanging on a thread today. Brands like Lululemon have held tighter control, selling only direct, and maintaining prestige in the buyer\u2019s mind, but even Lulu isn\u2019t immune to competition, economic factors, and losing its lustre as lifestyle apparel. One day \u201cathleisure\u201d will step aside for the next trend. Lulu and Victoria\u2019s Secret were once the healthiest of apparel brands, with a 20% profit margin! Victoria\u2019s Secret fell out of step with its customer, missing the new trends and staunchly sticking to its old aesthetic and offers. To keep a premium price, you need to maintain a premium, desirable product<\/span><\/i><span style=\"font-weight: 400;\">.\u201d<\/span><\/p><\/blockquote>\n<p><span style=\"font-weight: 400;\">An effective promotional and discount strategy should not just benefit your business in terms of increasing sales in the short term, but it must bring some sort of value to your brand too. Before offering discounted merchandise, formulate a discount strategy that keeps your brand top of mind and relevant.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Think of it this way, <\/span><span style=\"font-weight: 400;\">promotional and discounted products are a way of handing people a tangible representation of your brand, you should never make the mistake of launching them unless you\u2019re certain that they will create a powerful brand experience.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So before we can talk about how you can come up with strategies that add value to your brand, let&#8217;s take a look at a few examples of eCommerce sites that have used discount strategies to impact their brand in a positive way.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For starters, let\u2019s take a look at <\/span><a href=\"https:\/\/sweetpeaskidswear.com\/\"><span style=\"font-weight: 400;\">Sweet Peas Kidswear<\/span><\/a><span style=\"font-weight: 400;\">\u2019s discounting strategy.\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12963\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/Share-real-.jpg\" alt=\"\" width=\"680\" height=\"680\" data-wp-pid=\"12963\" \/><\/div>\n<p><span style=\"font-weight: 400;\">Customers are required to share the business\u2019 product(s) on their personal social media accounts in order to qualify for a 10% discount. What makes this strategy more fascinating is that the brand gains more traction and this makes business to benefit much more than the discount\u2019s monetary value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It encourages word of mouth from believers of the brand, at the same time, it increases <\/span><b>brand awareness<\/b><span style=\"font-weight: 400;\">. In fact, all the customers who share the company\u2019s products automatically become <\/span><b>brand advocates<\/b><span style=\"font-weight: 400;\"> of the company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a promo strategy can turn customers into brand advocates, then it means that it can get customers who are so loyal to the brand, isn&#8217;t it?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Come to think of it, there are some retailers that provide impressive long-term discount offers that encourage customers to commit to their brand. <\/span><span style=\"font-weight: 400;\">They t<\/span><span style=\"font-weight: 400;\">ake their promo strategies even further by creating membership programs in which <\/span><span style=\"font-weight: 400;\">members get to enjoy<\/span><a href=\"https:\/\/www.coredna.com\/blogs\/ecommerce-subscription-services\"><span style=\"font-weight: 400;\"> certain deals, discounts, and other benefits<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example,<\/span><a href=\"https:\/\/www.restorationhardware.com\/\"> <span style=\"font-weight: 400;\">Restoration Hardware<\/span><\/a> <span style=\"font-weight: 400;\">is a high-end furniture company that uses \u201cperks\u201d or discounts to attract new members.\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12964\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/rh.jpg\" alt=\"\" width=\"680\" height=\"397\" data-wp-pid=\"12964\" \/><\/div>\n<p><span style=\"font-weight: 400;\">This company provides a significant 25% discount to its members as an added benefit to their membership! While this strategy keeps members\u2019 dues low, it also compels members to become <\/span><b>loyal to the brand<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We live in a world where customers are now programmed to expect discounts by default, no matter the size of business. But this can be nightmarish f<\/span><span style=\"font-weight: 400;\">or small businesses who really can\u2019t afford to run discounts throughout the year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fortunately, <\/span><span style=\"font-weight: 400;\">the subtle art of an effective discount strategy doesn\u2019t revolve around dropping your prices instantly. You can offer a discount strategy that entices shoppers to order more items and enjoy the benefit of a bundled pricing.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12965\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/sale.jpg\" alt=\"\" width=\"680\" height=\"173\" data-wp-pid=\"12965\" \/><\/div>\n<p><a href=\"https:\/\/www.indigo-living.com\/buy-more-get-more-discount\"><span style=\"font-weight: 400;\">Indigo Living<\/span><\/a><span style=\"font-weight: 400;\"> is a perfect example of a website that usually offers a bulk or bundled discount strategy. As you can see from the above image, the more you buy, the more you get to enjoy benefits.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">What is unique about the <\/span><span style=\"font-weight: 400;\">bulk or bundled discoun<\/span><span style=\"font-weight: 400;\">t strategy is that it does not only<\/span><span style=\"font-weight: 400;\"> increase a customer\u2019s average order value<\/span><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">but it also helps foster a positive customer experience by making shoppers believe that they will save more money by buying two or more items together rather than purchasing them individually.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With that said, let\u2019s now talk about how you can come up with strategies that add value to your brand. <\/span><span style=\"font-weight: 400;\">Here are two ways of matching promotional and discount strategies to a brand:\u00a0<\/span><\/p>\n<ol>\n<li>\n<h4><span style=\"font-weight: 400;\">Differentiate Promotions by customer segments<\/span><\/h4>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Deploying a promotion or discount without <a href=\"https:\/\/www.invespcro.com\/blog\/using-buyer-personas-for-better-conversions\/\">segmenting your customers<\/a> is a delicious recipe for disaster. If you have been offering a <\/span><span style=\"font-weight: 400;\">one-size-fits-all promotional approach, <\/span><span style=\"font-weight: 400;\">you are missing out on an opportunity to <\/span><span style=\"font-weight: 400;\">maximize your efficiency and promotion ROI. Identifying customer segments, and creating different versions of promotion so that you resonate with different visitors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, customers who only purchase when a certain product is on promotion should be targeted by a promotional offer that requires them to increase the number of items in order to get a promotion.\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12966\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/etsy-2.jpg\" alt=\"\" width=\"680\" height=\"638\" data-wp-pid=\"12966\" \/><\/div>\n<p><span style=\"font-weight: 400;\">This kind of promotion is <\/span><span style=\"font-weight: 400;\">known as <\/span><i><span style=\"font-weight: 400;\">buy one get one free <\/span><\/i><span style=\"font-weight: 400;\">or BOGO, and it is<\/span><span style=\"font-weight: 400;\"> one of the popular promotion tactics used by both eCommerce and brick-and-mortar stores.<\/span><span style=\"font-weight: 400;\"> BOGO promos come in different variations as shown in the image above. But if your customers are not price-sensitive, then your promotions should offer customers a lower discount percentage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The other way of going about this is by offering discounts based on <a href=\"https:\/\/www.invespcro.com\/blog\/personas-strategy\/\">customer type<\/a>. Femella Fashions Limited is a good example of an online retailer that uses this promotional tactic.\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12967\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/Femella.jpg\" alt=\"\" width=\"680\" height=\"652\" data-wp-pid=\"12967\" \/><\/div>\n<p><span style=\"font-weight: 400;\">They offer a 15% discount to every visitor who purchases for the first time and a 10% discount on repeat purchases.\u00a0<\/span><\/p>\n<h4 style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">2. Define the Metrics\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The next step involves <a href=\"https:\/\/www.invespcro.com\/blog\/usability-metrics\/\">looking at the metrics<\/a> and numbers behind your campaign. Ask yourself the following questions:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">What exactly are you trying to achieve (your primary objective)?\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">How will I know if I have achieved it? (What\u2019s the best indicator of success?).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Clearly articulated answers to the above questions will help you <\/span><span style=\"font-weight: 400;\">nail down your key <a href=\"https:\/\/www.invespcro.com\/blog\/customer-journey-maps\/\">performance indicators<\/a> and <\/span><span style=\"font-weight: 400;\">the metrics you\u2019ll focus on when running promotions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the eCommerce industry, important metrics for promos and discounts can vary from one shop to the other, and they tend to evolve as the business grows over time. Although the metrics can differ from one business to the other, most eCommerce promotional strategies are built upon metrics such as doubling sales, retaining customers, or <a href=\"https:\/\/www.invespcro.com\/blog\/calculate-conversion-rate\/\">increasing the AOV<\/a>.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Escaping the world of Sameness\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s easy to be swayed by peer pressure and this is something that we often see from eCommerce sites who offer promos just because their competitors are doing so. This wave has created a problem called<\/span><a href=\"https:\/\/core.ac.uk\/download\/pdf\/37954976.pdf\"> <span style=\"font-weight: 400;\">homogenous retail agglomeration<\/span><\/a><span style=\"font-weight: 400;\">, or what marketers tend to call the \u201c<\/span><i><span style=\"font-weight: 400;\">sea of sameness<\/span><\/i><span style=\"font-weight: 400;\">.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yes, we are actually living in a world where e-commerce sameness makes it difficult to decide between brands. If you remove the company logos of most e-commerce websites, it would be difficult to differentiate one from the other.\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12968\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/11-7.jpg\" alt=\"\" width=\"680\" height=\"340\" data-wp-pid=\"12968\" \/><\/div>\n<div>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12969\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/22-3.jpg\" alt=\"\" width=\"680\" height=\"370\" data-wp-pid=\"12969\" \/><\/div>\n<div><span style=\"font-weight: 400;\">Look at the above homepages of two women\u2019s e-commerce shops, can you really tell the meaningful difference between them? Even the one below doesn&#8217;t quite spell out a meaningful difference, does it?\u00a0<\/span><\/div>\n<div>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12970\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/33-2.jpg\" alt=\"\" width=\"680\" height=\"323\" data-wp-pid=\"12970\" \/><\/div>\n<\/div>\n<\/div>\n<p><span style=\"font-weight: 400;\">The sea of sameness is not <strong>only<\/strong> associated with women&#8217;s e-commerce sites, different brands across the globe and in virtually every industry are suffering from a crisis of differentiation. There\u2019s no differentiation, even on the promotional and discount strategies that these websites employ.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When it comes to identifying what causes this proverbial \u201c<\/span><i><span style=\"font-weight: 400;\">sea of sameness<\/span><\/i><span style=\"font-weight: 400;\">\u201d that e-commerce stores are drowning in, <\/span><a href=\"https:\/\/www.linkedin.com\/in\/khalidh\/\"><span style=\"font-weight: 400;\">Khalid<\/span><\/a><span style=\"font-weight: 400;\"> says:\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12961\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/Khalid-Saleh.jpg\" alt=\"\" width=\"680\" height=\"383\" data-wp-pid=\"12961\" \/><\/div>\n<p><span style=\"font-weight: 400;\">If you take a closer look at eCommerce stores, it\u2019s as if one store doesn\u2019t want to lose a sale to another, so it makes sure to carry the same products, experience, <\/span><b>promotions,<\/b><span style=\"font-weight: 400;\"> and pricing as its competitors. There seems to be no meaningful differentiation or any clear <a href=\"https:\/\/www.invespcro.com\/blog\/value-proposition-what-is-it-how-it-works-and-why-you-should-pay-attention\/\">value proposition<\/a> \u2013 they all have a sense of uniformity here, there, and everywhere.\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12971\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/blacks.jpg\" alt=\"\" width=\"680\" height=\"315\" data-wp-pid=\"12971\" \/><\/div>\n<p><span style=\"font-weight: 400;\">On federal holidays such as Black Friday, Columbus Day, President\u2019s Day, MLK Day, you\u2019d expect every eCommerce store across the US to have discount strategies tailored for those particular days every year. But that\u2019s normal, the only problem is that most of those promos and discount strategies are tailored the same way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This actually makes it difficult for brands to gain a huge market share in a market where customers see you and your competitors as interchangeable.\u00a0 <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yes, I get it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Being meaningful different is hard, but not being meaningful can cost you a lot of money by doing what everyone else is doing.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As Linda put it:\u00a0<\/span><\/p>\n<div class=\"blog_img\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12962\" src=\"https:\/\/www.invespcro.com\/blog\/images\/blog-images\/lindaaa.jpg\" alt=\"\" width=\"680\" height=\"340\" data-wp-pid=\"12962\" \/><\/div>\n<p><span style=\"font-weight: 400;\">In other words, it\u2019s possible to strike<\/span> <span style=\"font-weight: 400;\">out for the unchartered waters while you\u2019re still selling the same products as your competitors. However, it takes a lot of courage to escape the <\/span><i><span style=\"font-weight: 400;\">\u201csea of sameness\u201d <\/span><\/i><span style=\"font-weight: 400;\">or to \u201c<\/span><i><span style=\"font-weight: 400;\">dare to be different\u201d<\/span><\/i><span style=\"font-weight: 400;\">. Even mega-brands put their reputations on the line when they deviate from expectations.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Escaping the sea of sameness is also worth it as it provides customers with what they really want \u2013 relevant, unique, on-brand differentiation \u2013 but you have to bear in mind that it is a long-term objective that doesn\u2019t happen in a heartbeat. It is anxiety-provoking at so many levels, but you can achieve it by doing this: <\/span><\/p>\n<h4 style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">1. Differentiating your brand positioning\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">To resonate with stakeholders or to attract customers, you have to differentiate your brand by establishing a compelling and unique proposition. Differentiating your brand position means defining what your brand is not rather than what it is. And very often this involves specialization and avoiding offering every kind of product to every kind of customer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Brand positioning, in the eCommerce space, means that every touchpoint that your customers have with your brand \u2014 from the product or service you offer to<\/span><a href=\"http:\/\/blog.marketo.com\/2018\/03\/experiences-win-customers.html\"><span style=\"font-weight: 400;\"> experience you deliver<\/span><\/a><span style=\"font-weight: 400;\"> \u2014 must be rooted in and consistent with your unique selling proposition. <\/span><\/p>\n<h4 style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">2. Focusing on your Brand Experience<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Smart marketers know that you can deliver the brand through its customer experience. When one brand starts offering free shipping, or same-day delivery service, competitors are more likely to do the same thing. <\/span><span style=\"font-weight: 400;\">However, consistent with the point above about unique propositions, by definition, different brands should provide different experiences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s best your business should focus more on brand experience instead of customer experience. This means that every touchpoint along the customer journey should be inspired and rooted in your brand\u2019s unique proposition. By so doing, your brand is empowered to detect what you want <\/span><i><span style=\"font-weight: 400;\">your<\/span><\/i><span style=\"font-weight: 400;\"> interactions with <\/span><i><span style=\"font-weight: 400;\">your<\/span><\/i><span style=\"font-weight: 400;\"> customers to look like. <\/span><\/p>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">3. Personalizing Customer Experience<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nowadays, advances in technology along with more creative practices makes it easy to customize experiences. If anything, customers feel appreciated when you provide personalized offers and experiences. Try not to appear too knowledgeable, but <\/span><a href=\"http:\/\/blog.marketo.com\/2017\/12\/5-factors-consider-segmenting-customers.html\"><span style=\"font-weight: 400;\">leverage customer information<\/span><\/a><span style=\"font-weight: 400;\"> to create better brand experiences.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But how do you do that?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An eCommerce client of ours \u2013 who\u2019s into women\u2019s clothing \u2013 was trying to penetrate this very crowded market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When we conducted JTBD (Jobs To Be Done) customer interviews we found that, for this particular women\u2019s clothing store, women who were in some sort of transition always turned to this brand. The brand offered nice looking styles but delivered great feeling and comfortable looks as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So with such insights in mind, it becomes easy to <a href=\"https:\/\/www.invespcro.com\/blog\/road-map-to-effective-personalization-when-how-and-what-to-do\/\">personalize the whole website<\/a> and meet the needs of users while staying on the brand.\u00a0<\/span><\/p>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">4. Pushing the Limits of Growth\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are limits to growth, especially in the <a href=\"https:\/\/www.invespcro.com\/cro\/conversion-rate-by-industry\/\">eCommerce industry<\/a>.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Brands practically apply the principle of minimum differentiation so as to make themselves identical to appeal to the broadest segment of the market. This works, to a point. But it gives customers no reason to buy from your store.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I mean what\u2019s the incentive of buying Store X when Store Y and Store Z offer the same value?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Pushing the limits of growth begins with determining where the brand\u2019s boundaries of extension lie. Doing so will help you avoid taking the plunge or blindly following the bandwagon.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Conclusion: staying on-brand doesn\u2019t happen overnight<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">We\u2019ve offered a lot of advice on how to handle discounts and promotions in a way that benefits your brand. When you decide to offer promotions, don\u2019t just do it because you want to increase sales \u2013but look at the bigger picture, think of how will your promotions benefit your brand? Will the promotion increase or diminish the value of our brand? <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, staying on-brand with promotions is not an easy feat especially when the business always evolves or when the needs of the customer change. But as difficult as it may be, your promotional strategy has to be matched to your brand and not the other way round.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 15<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Disclaimer: This section is a TL;DR of the main article and it\u2019s for you if you\u2019re not interested in reading the whole article. On the other hand, if you want to read the full blog, just scroll down and you\u2019ll see the introduction. After many years of working as a CRO professional and with many [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":12957,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,35],"tags":[],"class_list":["post-12956","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce","category-sales-marketing"],"_links":{"self":[{"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/posts\/12956","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/comments?post=12956"}],"version-history":[{"count":0,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/posts\/12956\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/media\/12957"}],"wp:attachment":[{"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/media?parent=12956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/categories?post=12956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invespcro.com\/blog\/wp-json\/wp\/v2\/tags?post=12956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}