Prior to the pandemic, I would browse around in stores. I am an avid shopper, and like I want to feel everything that I’m buying. But with the pandemic, especially 2020, everything just went online.
Now, I have my premier sites that I go to, and even if I can go into a store, I don’t like to waste time anymore. It’s more efficient buying it online.
I also save a lot more money, because I browse and am a bargain shopper. Rakuten and Honey and those types of websites give me coupons and cashback. And on top of that, my credit card gives me cashback. I double up.
So I save a lot shopping online, its like between 10-15% on each purchase, it’s been significant, and I don’t think that is going to change.
Avery, San Antonio
Shoppers are addicted to deals. Whether it is a coupon for signing up, an app like Honey or Rakuten, or finding a lower price on Amazon, if there is a deal, people will find it.
Honestly, I don’t even know how I feel about it. On one hand, it’s not good in the long run to go too heavy on discounting. On the other hand, competitors are doing it. So you don’t have a choice.
I’ve managed several stores, and discounts were part of the game. That game being the pricing strategy. And it is a delicate balance. I’d like to think I always did fairly well, but I’m sure I made plenty of mistakes.
As a DTC brand, here is the status quo:
Free shipping
At least 10% off first order
Around 20% off for holidays
There is A LOT more that brands can do, but these are pretty standard for most.
For the most part, this is not a big deal. These discounts won’t hurt too bad
…as long as your marketing is good
…and your cost of acquisition is manageable
…and your suppliers and shippers are stable
That is a lot of serious ands…
During the pandemic, costs all across the board went up. Demand went up, which helped marketing costs go down, but it put many in a tight spot.
Especially the newer or smaller brands. They didn’t have the capital that big corporations had to weather the store. They weren’t mitigating risk or laying off people to save money. They were just trying to stay afloat.
It got me thinking. If small brands are at a disadvantage against major competitors, and are also subject to a fragile supply chain… What advantages do they have that could help them stay afloat or even thrive?
Well, small brands don’t have the bloat of big corporations. They can give more personal customer service. They can be closer to their customers. They can build a community. They can find ways to add value outside of the standard discount.
Here are 2 ways to do it:
Unexpected Service
And by unexpected, I don’t mean really really good, exceptional service. I mean remarkable. As in “something worth a remark to your friends and family.”
Post purchase follow-ups to see if a customer is happy with your product - without the marketing bent.
Or a small (relevant) gift for a VIP customer. Things that are out of the blue and show that you value them.
Build a community
A community is simply a group of people with a common interest or goal. It doesn’t need to be big. It just needs some form of communication to connect people to each other and to the brand.
There are many ways to start a community. It could be a Facebook group. Or a social media challenge, which is a fantastic way to gather people around a common goal.
But regardless how, do something that connects you to your customers. The big players cannot challenge you there…. No one can compete with you.
People like Avery will continue to expect deals at every corner. For now.
Eventually shoppers will tire of that rigmarole and look for value beyond a discount. They will want to connect with people who share a common ground.
That is the advantage, and the challenge, new brands have in ecommerce.