Your 25% off can harm your brand.
New startups are rising, some 5 year old companies are expanding against the will of stagnating economies. Some of those companies are retailers and they are really pushing out their “25% off” offers just to make some cash. I’m talking about known brands by local or regional scale.
Those 5 year old companies, it’s too late for you to read this, but here’s a tip to those new startups rising, scaling up, and even the struggling ones. Your brand image has a value, that value is the personality, the traits and the story you have created around it. The moment you put out “25% offer” without actually having data about your consumers, their behavior, the way they perceive your brand and the right timing in which that offer is positively perceived and not abused, your brand will go from valued to cheap and your company will look desperate for the tiny pieces of the big pie.
This trap is dangerous, so, be alert and study your consumer behavior very well, use the data from your engagements with them to determine the following:
1) Why? (Maybe you need to clear up inventory or move up the sales needle a bit)
2) which line of service of product am I going to sell with a discount?
3) how can I communicate this discount offer without harming my brand image but enhancing it?
4) what’s the right timing?
Answer these questions, and then make your decision.
Follow me on twitter @ahmedrafiey or take a glimpse at my Instagram feed for more insights @arafiey , either ways, I hope you got some value out of this.