I see it every day - with businesses that are both online and offline.
My email box is full each morning when I wake up with amazing discounts, huge sales, and "limited time only" promotions.
However, I have become desensitized, because I know that the next day, there will be another offer.
Or if I need something, I just have to wait another few days until it is on sale again.
And thus the deteriorating spiral of frequent promotion begins.
And your loyal customers, who you already spent money to acquire, are simply absorbing your marketing funds for products that they would have paid full price for had you not taught them otherwise.
It is a problem common to companies both big and small.
When I took over the Keebler Cookie portfolio for Kellogg's, that "drug drip" as we lovingly called it was firmly intrenched.
People bought cookies primarily when they were on sale.
They stocked their pantry, filled their bellies, and waited to buy more until the next time they were on deal.
Or worse, bought the competitor's product that was on sale.
How tempting it was to have a coupon out, or a buy one get one free offer at all times to ensure that we made our monthly and quarterly goals.
The challenge is how to create excitement, drive sales and get your customer's attention without training them to buy only on promotion.
Some ideas include:
- Look for ways to generate trial without subsidising loyal customers such as "New Customer" promotions
- Reward loyal customers with things like "Tell-a-friend" promotions or loyalty programs.
- Tie your promotions to events - "Holiday Savings 25% Off"
- Identify new channels to promote in such as online