“The definition of insanity is doing the same thing over and over again, but expecting different results”.
Some wise person*
Same old, same old
Oh sure, this year, you did a quarterly email to high value customers to spend $250 to get 25% off instead of repeating last year’s tactic of posting a seasonal banner on your website advertising 25% off everything online. Was it differentiated enough to bring in new sales, protect your margins, and generate profit? Perhaps you had customers sharing the coupon code on retailmenot.com with comments from upset customers who thought it was bad form that you only emailed this to some customers and not all, plus you added a large spend minimum.
The dependence on Promotions isn’t something new and it’s proving fatal to some retailers, case in point, the Gap. Retailers have trained themselves to build out a Promotional Calendar and most customers have trained themselves to look for promotions and purchase only during a large margin-hurting promotion.
It’s no wonder Retailers are driving themselves insane trying to maintain margins while being unable to wean themselves off Promotions! It’s also no wonder, most Retailers express the same pain points year after year and find themselves caught forever in the struggle to drive revenue, protect margins and just achieve a slight positive comp, or at least have same YOY results – flat is better than a dip after all, if an uptick just isn’t achievable.
Distractions and Losing Sight
All this noise is enough to make Retailers lose sight of goals that are quite achievable, with just some minor adjustments and asking questions that allow them to assess whether they should change things up!
What are we doing to increase Customer Lifetime Value: Were the investments we made into our customers worth the return?
How are we increasing Average Revenue Per Customer
Have we increased Spend per Visit and Basket Size?
When measuring the results against the methods we used, did we improve our profitability this year over last?
Or did we just have a game plan of ‘Run at least the same promotional calendar as our #1 competition, so we can at least stay ‘competitive’ for market share’?
Bold Moves, Better Results
So what if we told you, that Retailers like yourself are getting incremental revenue, without resorting to mass and deep discounts? Or that these same retailers are able to protect margin, grow their customers’ baskets, shape demand in certain categories and do it with minimal investment?
It’s a bold move, not discounting more than 10% and not giving it away to everyone who comes onsite. And it works!
With ES Engage’s Individualized Offers, we’ve been able to help retailers improve customer lifetime value while ensuring promotions are optimized and executed in a brand-sustainable manner. Ask us how we’ve driven 10% incremental revenue and margin, 8% lift in orders, generate 2x ROI improvement on marketing spend and achieve 15% increase in customer lifetime value for our Clients.
If you want to learn more about how we can optimize your marketing dollars —Download our e-book today
*The quote is often attributed to Albert Einstein but no one’s really sure if he was the first ever to say it. In any case, whoever said it was a very wise person.