E-Commerce Link: Valued Promotions
“Good, better, best” pricing traditionally has been used to encourage shoppers to buy more expensive products. These days, it also can rescue the sale if a shopper balks at a price that is higher than expected. Recently, Helzberg Diamonds created an effective homepage strategy. A flash animation swaps primary images on its homepage every few seconds, starting with a midrange product, then a low-priced option and finishing with a high-end option. This lets all buyers find products that are right for them.
Another pricing option is to offer entire categories based upon specific price points: “Under $50” or “Under $100.” This can be very effective in price-based online gift guides, and these products do not actually have to be on sale.
Tactic No. 3: Discount Judiciously, Promote Extravagantly
Retailers can maintain the integrity of the brand while still offering discounts—even deep ones. Smart retailers focus on discounts that mean the most to core customers rather than slashing indiscriminately. A few well-advertised discounts can draw new customers without making you look like a liquidation center.
Once you decide which discounts to apply, get creative and promote them. Consumers see a lot of “Prices Slashed” messaging, and you want to stand out from the crowd.
- Online value center: Reduced price items in this section can be organized according to price point. You may choose to highlight one or two different items every few days in a “Time is running out!” promotion to create a sense of urgency.
- Value bundles: People love to get more for less, and applying a lower price to an ensemble of products is bound to be a winner.
- “Buy more, save more” categories: During the 2008 holiday period, Victoria’s Secret grouped bras and underwear into categories like “2 for $40” and “3 for $25.” These categories were in the left navigation of its Sales & Specials section, which also included discounted categories labeled as “25%-40% off styles.”
- Online coupons and coupon codes: Target recently grouped all of its coupons in one section of its site, providing a great merchandising opportunity and making it convenient for shoppers. Rather than automatically applying a coupon discount, you can require shoppers to enter the coupon code to get them more engaged.
Once you have your discounts arranged, it’s key to communicate effectively; bargain hunters may not take the time to hunt for the discounted product you promised them.