Email Marketing Strategies: Perception is Everything
Cuts are being made across the board as consumers spend less on everything from luxury goods to basic necessities. In order to compete, businesses must follow the lead of discount retailers and offer products at lower price points. But price alone isn’t enough to capture new business – value is equally important. For example, gift cards have been top sellers in recent years as it was convenient for both the giver and the receiver; however, this year, consumers may purchase discounted gifts instead of gift cards as it allows them to fulfill their gift buying requirements at a lower cost. This holiday season, instead of sending emails promoting gift cards, send emails offering a special discount on or coupon for top selling products. After all, a $100 gift card costs $100, but a $100 digital frame discounted 20 percent only costs $80. Best of all, the purchaser and gift recipient still perceive the value of the frame to be $100. Discounting products will lower your profit margins but, as stated above, every dollar counts right now. And, if the customers see the value of your offering, you’ll turn the purchasers into long-term customers and repeat buyers.
If discounting isn’t right for your business you could offer several items at a lower price point than your normal merchandise. That way, consumers have the perception of getting a great deal on your products without the need of coupons or special discounts. For example, Tiffany & Co. offers a number of sterling silver lines that include rings, bracelets, necklaces, earrings, keyrings, and charms at a much lower price point than its other lines. Doing so makes its brand accessible to everyone and builds repeat customers and brand advocates. And, if you offer these items to the subscribers on your email list exclusively or before the items are available in your stores, you will strengthen the relationships you have with your subscribers and keep them reading and responding to your messages.
If you can’t lower prices try adding extra value to your offering so customers feel like they’re getting a great deal. B2B marketers could add a few hours of free consultation, or free access to industry knowledge such as white papers, reports, or webinars, or free tickets to their next corporate event in order to give customers an extra incentive to purchase their products. B2C marketers could double reward points on their loyalty programs or offer free gift-wrapping or free or flat-rate shipping. While these items have a cost associated with them, many times the cost to the company is less than what the company would lose by discounting products. Careful research and planning will help you determine which option is best for your business and email is the perfect tool to use to test different offers to see what works best for your audience. It’s inexpensive and you get responses immediately.
Price and value are the main factors people will use when making purchasing decisions this holiday season and throughout the downturn in the economy. As businesses struggle with lower profit margins and competition gets even more fierce, it is more important than ever for you to differentiate your company from your competitors. Below are some guidelines you can use to revamp your email marketing strategy in order to position your product, brand, and value proposition in front of potential buyers to capture as much new business as possible.