Avoiding Price Competition this Holiday Season
October 8th, 2008 by Doug BrightThis economy thing looks bad.
As we all prepare ourselves for diminished consumer spending in the months ahead we can expect to see price play a pivotal role in buyer decisions. Is there any way retailers can avoid engaging in price wars and destroying margins this holiday season?
A JupiterResearch study from 2006 shows that there are three major factors that drive sales from email campaigns:
- Sale pricing
- Free shipping
- Product Relevance
The single biggest factor in driving revenue that doesn’t damage margins is ensuring that email is relevant to the customer. That means getting a handle on what each customer is likely to be interested in buying next and getting it in front of them before the competition does.
The bad news is that targeting email is more difficult than slashing prices. The good news is that if you are better at it than your competition, you’ll skate through the holiday with lots of high value customers while your competition battle it out for the bottom feeders. That’s the perfect holiday gift for your CFO.
Tags: Discounts and Offers, email relevance, holiday, Targeted Email
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