Shoppers could be forgiven thinking that many retailers appear to have lost their way … judging by the number of retail outlets running SALES for months on end.
It seems to me that many shops have had one long sale since Christmas. While the colour of the signs may change, they all scream SALE and often have a a percentage discount. I have seen shops offering up to 75% for more than six months.
There was a time when retailers stood for value reflected in a particular range, unique services or rewards in return for loyalty. These are other differentiators appear to have been lost as retailers appear to lost faith in anything but promoting a SALE.
With so much of what we sell in our newsagencies at a pre-marked fixed price, it is a challenge for us to engage in the perpetual sale game. While I see this as a good thing it is also a challenge because it feeds into the consumer perception that newsagencies are expensive. We are kind of damned if we do and damned if we don’t.
To counter the consumer perception and to swim in waters away from the bloody ocean filled by retailers who are forever running sales, newsagents could consider these ideas for promoting value:
- Genuine reward for genuine loyalty. Look at what your most common shoppers purchase and offer a valued reward if they purchase just a bit more. For example, why not a discount on a second greeting card if the majority of your card shoppers purchase one card? Or why not a discount on stationery purchases over $10 if the most common stationery sale is under $10. You could call this an instant rewards offer. I have seen this work extremely well in newsagencies. One newsagency I know of gained an extra 75 card sales in one day running this promotion.
- Promote local. Why not hang signs throughout your business which say LOCAL jobs and profits for the local community. Implied in this is the added value of what you do through your business for the local community. Where some nearby business is promoting a SALE, you are promoting LOCAL. You are not in the same waters as them. You can’t be compared to them. Just the difference in promotional signage and making it NOT about price will generate discussion.
- Run a DO GOOD campaign. Connect with a local charity and offer percentage of sales to them – either of all sales or based on growth. You could also offer a reward based on purchases by members and friends of the community group. Promote the campaign as a do good for the community campaign. This also pitches your offer differently to any competitor running a sale.
- Embrace SERVICE as a value proposition. review your shop floor customer service. Make it the best in the area. Reward your employees for growth and service. Promote your employees to your customers.
- Promote their connection to the local community. Once you do have the best customer service, promote this – put up SERVICE signs or some other collateral which shows off your commitment to customer service.
- Chase different products. In every case where you have products which other retailers nearby also have, find ways to differentiate your offer. Make it clear to shoppers that it is more rewarding and valuable to them to shop for that commonly available item in your business. This is challenging but vitally important. You want to win the customer on your value proposition and get them coming back to you.
This list is by no means complete. I have created it to get people thinking about what else you could do to promote value which is unique to your business.
Next time you go to put up a SALE sign, make sure that it is for a limited time, that you are offering a genuine discount and that there is considerably more value on offer than simply a price differential. A discount by itself is no longer perceived by shoppers to be valuable.
As David Jones, Myer, Target and others have discovered, promoting a retail business only on price is risky and not likely to deliver the long term rewards necessary to support the business.
Another good tip Mark. I especially like the ideal of signs which say local instead of sale.