Ditch the Discount, Says Brand Marketer
In the ever-evolving landscape of eCommerce, brands are constantly seeking effective strategies to drive sales and enhance customer experience. Cherene Aubert, a seasoned brand marketer and founder of Growth Capital, emphasizes the importance of rethinking discount strategies. With extensive experience in managing and executing eCommerce marketing campaigns, Aubert provides valuable insights into how brands can better engage customers without eroding their profit margins.
Understanding the Market
Since 2013, Cherene Aubert has been at the forefront of eCommerce marketing, advising brands on how to scale and grow. Her firm, Growth Capital, focuses on premium and high-growth brands, leveraging her expertise gained from previous roles at various agencies and companies. Aubert highlights that brands often resort to discounts for slow-moving products, which can lead to negative customer experiences and diminished brand value.
The Pitfalls of Discounting
According to Aubert, the instinct to discount slow-moving products is a common mistake. While it may seem like a quick fix to clear inventory, this strategy can inadvertently attract customers who are not aligned with the brand’s values. Instead of discounting, Aubert suggests considering alternative approaches that preserve brand integrity and enhance customer satisfaction.
Effective Alternatives to Discounts
Aubert recommends bundling products or offering buy-one-get-one (BOGO) deals as more effective alternatives to discounts. By creating bundles, brands can position their products in a way that highlights their value while also introducing customers to slower-moving items. For example, in the beauty industry, a bundle might include a popular product along with a less favored item, reframing the perception of the latter as a complimentary addition.
Creating Value Through Bundling
When promoting bundled offers, Aubert advises brands to clarify their goals. Are they aiming to reduce customer acquisition costs (CAC) or increase average order value (AOV)? These objectives can often conflict, so it’s crucial to design offers that align with the desired customer experience. For instance, introductory kits can attract new customers, while higher AOV offers may appeal to existing customers through targeted email and SMS campaigns.
The Role of Influencers
Influencers play a significant role in driving customer acquisition for brands. Aubert emphasizes the importance of collaborating with influencers to design higher-priced items that resonate with target audiences. By leveraging influencer partnerships, brands can create authentic content that engages potential customers and encourages them to explore the brand further.
Maximizing Marketing Efficiency
Brands must also be strategic in their marketing efforts. Aubert notes that external, direct-response ads are most effective for promoting single products, while video ads featuring multiple products serve more as brand advertisements. The choice of marketing channels is influenced by the product category and the stage of the business. For instance, TikTok is an excellent platform for brand awareness, while Meta can be more effective for retargeting and maximizing AOV.
Conclusion
In conclusion, Cherene Aubert’s insights encourage brands to rethink their discount strategies and explore more effective alternatives. By focusing on customer experience and leveraging innovative marketing tactics, brands can enhance their value proposition without compromising their margins. The key takeaway is to prioritize full-price transactions for as long as possible, ensuring that customers remain engaged and satisfied with their purchases.
Frequently Asked Questions
Discounting can attract customers who may not align with the brand’s values, potentially leading to negative perceptions and experiences. It can also erode profit margins and diminish the perceived value of the products.
Bundling allows brands to highlight the value of their products while introducing slower-moving items in a positive light. It can enhance customer experience and increase average order value without resorting to discounts.
Influencers can significantly drive customer acquisition by creating authentic content that resonates with target audiences. Collaborating with influencers can help brands design appealing products and reach new customers effectively.
Note: The insights shared in this article are based on the expertise of Cherene Aubert and her experiences in the eCommerce marketing landscape.
