Doling Out the Digital Discounts This Holiday Season
Retailers may be facing the uncertainty of whether they’ll make it or break it this holiday season as they factor in a number of economic variables that affect shopping behavior. Because of this unpredictable landscape, it’s essential they use all the resources at their disposal to remain competitive. But they may not have to search too deeply, as it appears that one of the most effective means of driving more traffic through the retail doors this season will be the tried-and-true method: deals and discounts.
NRF reported in October that it will be these sales and discounts that will determine a consumer’s decision to shop with a particular retailer. In fact, 36 percent stated it’s the most important factor deciding where they will shop – significantly higher than selection and quality of merchandise. Even with consumers becoming more adamant about privacy concerns, a survey found that 41 percent of consumers were still willing to let marketers use their personal data in order to get discounts. It’s essential retailers have an effective strategy to get their special deals out to the right customers and at the right time.
Timing is paramount when it comes to delivering these time-sensitive ads, and mobile will be the way to do it. Considering the major role mobile now plays in shopping, retailers must be smart about how they use mobile to deliver their specials. Whether integrating these digital discounts with customers’ email accounts or using text messaging to entice them in for limited-time deals, retailers should focus on a digital discount strategy. Using location-based mobile applications will also allow them to deliver specific store offers based on each customer’s past shopping behaviors and present locations – whether they’re in the parking lot or walking by the store.
Of course, for these digital discounts to be effective, retailers must know their customers and ensure that the discounts they’re sending out are relevant to a consumer’s current needs. There’s nothing worse than being inundated with ads – no matter how great they may seem – if they hold little relevance to the recipient. As Bryan Pearson, author of The Loyalty Leap, puts it, “If marketing efforts annoy customers, because they are too frequent, intrusive, or just not relevant, customers will tune them out even if not opting out.” (220) By not having a well-thought-out strategy, a retailer may not only irritate customers, but possibly turn them off to future interactions with its business.
As retailers strive to drive more foot traffic through their doors and increase store conversion rates, ShopperTrak provides in-store analytics to make sure they are fully capitalizing on all of their assets and resources to do so. Our people-counting technology helps retailers understand the effectiveness of marketing campaigns and identifies actionable insights to help determine the right strategies to take.