Discount or not
Discount does not lead to higher sales
Discount does not lead to higher sales
70 % discount on Zomato Gold suggests that customers aren’t lapping up the product. Deep discounts also mean deep losses.
As per retail expert Kevin Hillstrom brands use discounts to influence customer behaviour. But, the real culprit is the product/ merchandise. Therefore, brands offer discounts and free shipping. It harms brands as customers do not want to pay the full price. Patagonia doesn’t offer discounts. Amazon Prime is an unique loyalty program, where it charges customers.
He tweeted, “Discounts and promotions are taxes placed upon brands for being unremarkable.”
Kevin suggest that future of retail should be similar to professional sports:
Best customers pay for the best merchandise in advance, retail customers .
The biggest sports events have expensive tickets and limited seats.
Free offerings in sports lead to more sales, unlike retail.
Analytics focus on real performance, not campaign’s performance.
Dig deeper: Casper’s incurs a loss of $ 300 per mattress. Link