Some customers just show up to your store, stare at your items, and then spend half the time on their phones looking up where they can get them for cheaper. Because when it comes to shopping, there’s always a cheaper option online. Isn’t there?
Well, sort of. Competing with the online ecosystem can seem like an impossibility. Matching Amazon’s prices (or even just Walmart’s) may not be financially feasible for your business. But price isn’t everything. Even if there’s a cheaper option, that still doesn’t prevent your store from making a potential sale.
That’s where deal psychology comes in. It’s not always about having the lowest price. It’s about the presentation. Your customer has to believe that they’re getting the best deal.
Deals, first and foremost, create urgency. When a customer sees a “Limited Time!” discount, they’re pressured to act. Otherwise they might miss out! Even if there is a better price online, they might not even bother to check.
Today, let’s look at two specific ways you can use deals to compete.
One type of deal you’re probably familiar with is “BOGO” (Buy One, Get One). The BOGO mentality is so effective because it can work in a variety of ways that’ll help you drive sales. For instance, BOGO can be used when you’re seeing low sales of a particular item, and you need to clear some inventory. On the other hand, BOGO can be used to alter the customer’s perception of the deal they’re getting.
When a customer is purchasing an item on a BOGO sale, their primary instinct is that they’re getting a fair deal on the purchase. This isn’t always true. As I said before, making a sale is about presentation, and how a customer perceives the deal.
If a shirt is normally “discounted” at $40, but then jumps back up to its standard price of $60 during a BOGO sale, the customer is still going to feel like they’re getting an awesome deal. They only saved $10 a shirt, but they ended up buying two instead of one. So they still spent $20 more than they would have in the first place!
The coupon mentality works because it’s providing customers with a reason to come into your store specifically, and spend money. If a customer has a 20% discount coupon for your store, they can’t spend it on Amazon – no matter how much they’d like to. It forces them to make a purchase directly from you. Not only does this get them spending money in your store, it also gets you foot traffic.
Leveraging Technology – With CoGoBuzz
Want to really counter online shopping? Get started with CoGoBuzz!
Our state-of-the-art marketing service leverages WiFi, SMS, and Email solutions to promote your business both in-store and out. We start by using your in-store HotSpot to display an interactive landing page tailored to your business. It shows up directly in your customers’ mobile browsers, highlighting your business’s biggest deals, BOGO specials, and deals! Send exclusive coupons to your customers with just a text message!
Check out the rest of our website to learn more!
How does your business compete with online stores? Let us know in the comments!