The Bribe or the Brand?

Lois Brayfield, CEO

During the holiday shopping season, you’ll see more offers, promotions, teasers … well, more bribes to drive sales than any other time of the year. With holiday consumer spending forecast to reach $619 billion, brands are scrambling to ensure they get their piece of the pie. Is the “bribe” necessarily a bad thing? Well, it can be. Consider the following:

1. Are you prospecting with a bribe? If so, have you considered how much you’re spending to acquire a customer? And if so, what’s your return on investment? Many brands find that when a customer comes in with a deeply discounted offer, loyalty seldom follows. Or if that customer does return, it’s only with another bribe. If this is the case, at what point are you realizing an acceptable profit threshold?

2. Your offers are ultimately eroding your brand. Yes, this is a harsh accusation, but think about it. Your brand is the most valuable asset you own, and your team spends countless hours building and protecting the perception of your brand. In a single moment, all might be lost in a rush to bag a sale. Great brands stand for something and own a voice — i.e., a method in which messages are presented in a memorable way. Do your offers and promotions speak in the same voice as your painstakingly crafted brand? Do your offers support your unique position in the marketplace? Hear me loud and clear: I’m not contending that offers are always deleterious to the bottom line. Rather, I’m asking you to consider the notion that a poorly crafted offer moves consumers one degree further from the desired perception of your brand.

A brand that always seems to gets this right is Duluth Trading Co. Just about every promotion presented to its customers is steeped in the brand’s fun and often irreverent voice. Customers expect Duluth Trading to talk to them in a witty voice with a hint of naughty. Note how its offer “shoots the moon” with its “plumbers butt” long-tail T-shirt. This is completely consistent with Duluth Trading Co.’s brand voice, not to mention an attention-grabbing call to action!

3. Do you really need a bribe? Great marketers understand that offers are created to change behavior — e.g., reactivating lapsed customers or increasing the average order. This isn’t a bad idea. A bad idea is when you give away margin to customers that didn’t need the bribe. For many brands, being top of mind is all a customer needs.

With the busy holiday season upon us, being proactive is critical. You must “be there” when customers are ready to make a purchase decision. A carefully crafted communication plan will maximize exposure based on past purchasing behavior. If customers love what you offer and what you stand for, a bribe is never necessary. What is necessary is an understanding of what matters to your customers. In a recent email,Fab promised me “gift solutions for every budget.” What a great offer! Yes, to me this is an offer, and no discount was necessary.

So, what will your brand be remembered for this holiday season? Will it maintain the integrity of its perception? The three concepts I’ve mentioned require careful planning and communication among your marketing and creative teams, but if loyalty is your ultimate goal, it’s well worth the effort.

As seen on Women in Retail Leadership Cirlce