Are consumers now in permanent “discount mode”? How can I attract customers who are after quality, not simply low prices?
This question raises an interesting point. No doubt the majority of Australian consumers are most certainly in permanent “discount mode”, thanks in part to the larger brick and mortar goliaths such as Myer and David Jones constantly running large clearance sales, with heavy discounts of up to 30-70% off.
The tendency to hold sales and discount products has also increased in the aftermath of the global financial crisis.
Consumers have been bombarded with discounting campaigns in an attempt by the big retail stores to claw back sales, and these sales of late have even dragged on for several months, which completely dilutes the call-to-action and is the major reason why consumers today are said to be in permanent “discount mode”.
However, at the same time, I think that customers are also wising up to the fact that sellers are constantly holding sales, and calls-to-action such as “Limited Time Only” or “Clearance Sale” no longer carry the same punch they once may have.
Accordingly, the educated consumer is becoming desensitised and less reliant on “sales” and promotional campaigns seeking to highlight discounts, and is learning that the best price and product offerings can be found through one’s own independent research, particularly online.
With the rise of online shopping, customers can find what they want, compare prices and quality, without waiting for a known retailer to hold a “sale”, all from their computer.
Regarding getting customers who are after quality not low prices, the same principle applies. The educated consumer should be able to find your products online, and be able to compare with other similar offerings.
To earn the business of those customers who are after quality, you need to actually offer that quality, and ensure that the quality is clearly conveyed on your website.
Other than relying on a well-designed and informative online store and the educated consumer to appreciate your quality, you would need to invest heavily in locating your store in an area synonymous with quality (or even trendy), together with significant advertising spending to achieve your desired brand recognition.
I don’t know about you – but the choice here seems easy to me.