Think tactics employed by Groupon, Wag Jag & Buytopia are the answer to boost plummeting sales? Think again my friends! The customers you gain from this marketing tactic typically vanish like the wind as soon as your 50%-70% off promotion is no longer on the table (faster than I can deliver you a humble pie of ‘I told you so’).Don’t get me wrong folks, client sales will likely increase but only for a fleeting moment. Now you’re faced with the same problem you originally started off with prior to jumping on the ‘price slash’ band wagon. Instead, allow me to help you examine some of the root causes of your stalled profits so you can work towards sustainable solutions (ones that will secure the consistent flow of sales). But first, let’s examine why extreme discounting is just a bad, stinking idea:
Proof #1: Have you ever walked into a retail store and saw something discounted for 80% off and then began to wonder…well if the product can be discounted THAT MUCH the true value must be worth almost nothing! Picture if all Michael Kors watche prices were suddenly slashed down to $39.99! That beloved product now appears a lot less prized and valuable than you had originally thought huh?
Proof #2: Have you ever got a discount somewhere that was so ridiculously cheap you decided ‘I’m never going to pay full price again!….I’m going to wait until the next big sale rolls around!’ You never want your customers to be conditioned to wait to buy only when you have a HUGE deal to offer them. You catch my drift…
I’m going to tell you some alternative ways to increase your sales WITHOUT drastically dropping your price points. Pay close attention folks…I promise you these tips and tricks will work!
1. Testimonials Are your New Best Friend
Nothing speaks volumes like an awesome review from a customer about your business. According to a survey conducted by Dimensional Research, an overwhelming 90 percent of respondents who read online reviews claimed it was the deciding factor in deciding to make a purchase. These statistics are STAGGERING so it’s definitely in your best interest to make sure testimonials are dominating your business. So how do begin obtaining client reviews?…simply ASK, it’s that simple. Fifty reviews or more and your company will become all the buzz!
2. The Infamous Upsell
Ever go to a store looking to buy an appliance and the salesperson convinces you that there is a better product option that is slightly higher in price but well worth the increase in cost due to the additional features and/or quality? This is called up-selling my friends. — USE IT. The reality is that the upsell is actually in the client’s interest, and it certainly doesn’t hurt your sales objective either. It’s a win-win situation for everyone!
3. Reduce Neglected Shopping Carts
You have likely already experienced what I like to call the ‘Shopping Cart Baiting Tactic.’ Retailers are known to proudly advertise that their shipping costs are either highly reduced, or completely eliminated in order to encourage spend. This is a very useful tactic for e-commerce websites. It makes the decision to buy a whole lot easier for customers knowing they don’t have to pay an additional 15.99 just for S&H!!! Another useful tactic that good e-commerce websites employ is the generation of a follow-up e-mail to stalled buyers to remind them of the items remaining in their shopping carts. This reminder is a brilliant way helps to encourage them to follow through with purchase. If you have an e-commerce website you ought to be using these strategies to reel in more sales!
4. Rewards for Multiple Purchases
You have probably seen the ‘rewards for purchase’ marketing strategy at Starbucks or MacDonald’s where the retailer provides you with a beverage card and after purchasing 8-9 drinks the 10th one is FREE. Obtaining new clients can be a challenge so why not take advantage of the ones you currently have and encourage repeat purchases. It’s a no brainer!
Now that I have explained a few creative ways to increase your sales without drastically reducing your pricing (and your profit), I want you to incorporate these tricks and watch your sales margins soar.
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