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Emphasized Text

This powerful form of mobile marketing is a huge but often underutilised opportunity for business sales. Text for success with these 11 steps.

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Text messages have come a long way.When SMS or ‘text messages’ were first introduced in the late nineties, most phones were the size of bricks, emojis hadn’t been invented, and people generally used their mobile phones for texting and calling – and nothing else.Fast-forward to today and SMS is one of the most widely used data services in the world. An estimated<a href="https://techjury.net/blog/sms-marketing-statistics/#gref" rel="noopener noreferrer" target="_blank"> 23 billion text messages are sent every day</a> (that’s 270,000 every second), and<a href="https://www.tatango.com/blog/90-of-text-messages-are-read-within-3-minutes/" rel="noopener noreferrer" target="_blank"> 90 per cent of texts are opened within three minutes</a> of being received.Not surprisingly, text messaging is increasingly seen as a powerful channel for businesses to communicate with their customers.&nbsp;“Brands began experimenting with SMS messages a few years ago, but I think we started to hit an inflection point around the time of the COVID-19 outbreak,” says Josh Siegel, vice president of SMS at<a href="https://www.klaviyo.com/" rel="noopener noreferrer" target="_blank"> Klaviyo</a>. During the 2021 Christmas sales period, the marketing automation platform experienced more than a 10-fold increase in the number of messages it sent on behalf of clients.This new form of mobile marketing sees businesses send a variety of texts to their customers: welcome or opt-in messages; sales alerts; appointment reminders; birthday messages; product launches; abandoned trolley reminders; and customer service follow-ups.&nbsp;The potential to engage with customers via SMS is high, given that texts have an estimated open rate of 98 per cent, compared to 20 per cent for email. According to research from Klaviyo, over one third of consumers choose SMS messages as their preferred channel to hear from brands. For younger consumers such as Gen Z or Millennials, that number is even higher, at 50 per cent.

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Over one third of consumers choose SMS messages as their preferred channel to hear from brands.

“SMS is going through that curve of wild adoption, but because it is a new marketing medium, many businesses don’t know the rules around using it and how to set themselves up for success,” says Siegel.Follow this guide to nail your SMS strategy.<h3>1.	Get the basics right</h3>To start, you’ll need to sign up to a marketing automation provider, such as<a href="https://www.klaviyo.com/" rel="noopener noreferrer" target="_blank"> Klaviyo</a>,<a href="https://www.attentive.com/" rel="noopener noreferrer" target="_blank"> Attentive</a> or<a href="https://www.smartrmail.com/" rel="noopener noreferrer" target="_blank"> SmartrMail</a>. These platforms will allow you to send text messages in bulk – generally from an online SMS dashboard – and will manage your data and permissions.Costs will vary, with many SMS marketing platforms offering tiered pricing, whereby you can send a specified number of messages for a monthly fee.With SmartrMail, sending 1000 contacts one SMS of 160 characters costs roughly £30, says Nicolas Vibert, the company’s growth manager.<a href="https://marketerhire.com/blog/sms-marketing" rel="noopener noreferrer" target="_blank">According to MarketHire</a>, sending one SMS campaign per week to a list of 10,000 subscribers would cost around £350.By comparison, sending your customers marketing emails via a basic automation platform can cost as little as a few dollars per month (with Mailerlite, you can get free plans for up to 1000 subscribers, while if you have 10,000 subscribers, sending unlimited emails costs around £42 per month).&nbsp;Keep in mind, though, that the costs associated with executing an SMS marketing campaign are lower than that of an email campaign – with no need to pay for a designer or long-form copywriter.<h3>2.	Secure customer consent</h3>Before you start sending texts, customers need to agree to receive messages from you.&nbsp;In the UK, consent to receive SMS messages must be expressly received rather than inferred. This means customers have to tick a box stating that they’re happy to receive SMS marketing texts. If you have an international client based, be aware that laws vary within Europe and the US, so it’s worth working with a provider to make sure you’re complying with the relevant legislation.&nbsp;You can collect permissions during the checkout process or through a landing page or form that appears on the website. Consider giving the customer a compelling reason to join the SMS list, such as VIP membership or an exclusive offer.

"It's a bad customer experience to send SMS messages to customers who don’t want to receive them.”&nbsp;

<h3>3.	Set your goal</h3>Next, consider the motivation behind your SMS marketing. With each text, are you seeking to welcome new customers, alert them to a promotion, invite them to an event, or re-engage with lapsed customers?Remember, every text message is an opportunity to engage with your customer and work towards converting a sale. According to Anup Khera, vice president and general manager of international at SMS marketing provider<a href="https://www.attentive.com/" rel="noopener noreferrer" target="_blank"> Attentive</a>, a recent customer survey found that 63 per cent of respondents who subscribed to a brand had made a purchase based on a text message exchange.See some examples of different types of texts below.The Welcome SMS:

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The Sales Pitch SMS:

The Lure-Back SMS:

<h3>&nbsp;</h3><h3>4. Keep it brief</h3>As illustrated above, briefer is better when it comes to SMS marketing.&nbsp;One reason for this is cost – if you exceed the 160-character limit, you’ll pay for it. A message of 200 characters, for example, will incur the cost of two SMS messages; a message of 500 characters will be priced as three messages.Short and snappy texts are also preferable from a user perspective. “Clear, brief messages tend to perform well," says Siegel. “People glance at their phones quickly, so you have to capture their attention and it has to make sense. If you push the call to action too far down, it can be lost.”<h3>5. Experiment with images, videos and emojis</h3>“Using a picture [in a text] can be effective, but be careful what you choose,” says Siegel. “Test to see what works for your audience. The research on the use of emojis is mixed… Some people don't like it – it depends on the context and the type of business.”&nbsp;Adding emojis, images and videos to your messages will also incur extra costs. And with the current tech, a video can only be sent via a link, rather than embedded in the SMS message itself.<h3>6. Get personal</h3>Avoid a generic blast. The most common mistake made by retailers is overlooking the personalisation that an SMS marketing strategy requires.8“It’s really important to tailor the message, as opposed to [sending out] a blanket offer,” says Vibert. “Many merchants think that they can simply export a list of phone numbers that they accumulated over the years through their in-house booking system and just blast them with an SMS campaign every week. It will simply not be effective.”Khera agrees, adding that there is no need to use guesswork in targeting different segments via SMS. “For marketers, text messaging stands out as a channel that’s uniquely data-informed and measurable,” he says. “Its immediacy allows brands to segment and personalise messages in real time to [turn] browsers into buyers.”A partner like Attentive, LoyPal, Klaviyo or SmartrMail can pull in multiple data sources to set up segments. For example, you could group together the customers who have purchased before and are interested in the same category – then send them a relevant offer.&nbsp;“Leverage the data that you've got to tailor the message,” says Vibert. “Don’t just shoehorn email content into an SMS script. Even a little bit of personalisation will go a long way.”

“Clear, brief messages tend to perform well."

<h3>7. Ensure you meet content regulations</h3>In Britain, the<a href="https://www.asa.org.uk/" rel="noopener noreferrer" target="_blank"> Advertising Standards Authority (ASA)</a> will provide all the info you will need to make sure you are meeting content regulations. If you market to an Australian audience, visit the<a href="https://www.acma.gov.au/" rel="noopener noreferrer" target="_blank"> Australia Communications and Media Authority (ACMA)</a>. &nbsp;It’s worth noting that in the US and Canada, SMS marketing content relating to<a href="https://smsbump.com/knowledge-base/view/prohibited-content-sms-marketing" rel="noopener noreferrer" target="_blank"> SHAFT</a> – sex, hate speech, alcohol, firearms and tobacco – is either entirely permitted, or requires age verification. See the<a href="https://www.wmcglobal.com/hubfs/CTIA%20Short%20Code%20Monitoring%20Handbook%20-%20v1.8.pdf" rel="noopener noreferrer" target="_blank"> CTIA Handbook</a> for specific guidelines.Content restrictions around topics such as alcohol vary internationally, too. Wine retailers often fall foul of this because they simply do not realise they are contravening the rules, notes Vibert.<h3>8. Give customers the option to opt out</h3>Always ensure there is an option to unsubscribe at the end of your texts – across the world it’s mandatory to send an opt-out message upon sign-up. In subsequent texts, it’s widely considered best practice, and is a legal requirement in some jurisdictions. Check specific regulations with your SMS marketing provider.“Aside from getting banned by the provider, [not giving customers the option to opt out makes for] a bad customer experience,” says Julian Casson, co-founder of SmartrMail. “It's such a highly personalised channel. If you're invading people's space, it will be viewed very negatively.”<h3> 9. Set and forget with automation</h3>Automated text messages can spur revenue growth by promoting flash sales and sending re-engagement messages and prompts following trolley abandonment. It is preferable to run this in tandem with related email messages, but be mindful about a disjointed experience for the customer. SMS messaging can be particularly powerful for targeting customers who haven’t made a purchase for a long time (whereas an email is more likely to stay unread in the promotions folder).However, it’s important to find the sweet spot in terms of frequency when setting up automated SMS campaigns; sending text messages too frequently will lower the open rate as customers begin to disengage.“You probably don't want to send a SMS message more than once a week,” says Siegel. “If you push that further, you have to really understand the audience and be careful about your content strategy.”

"If you're invading people's space, it will be viewed very negatively.”

<h3>10. Allow for a two-way exchange</h3>SMS was never meant to be a one-way channel. So, what happens if a customer writes back to your text, seeking more information on a product or deal? Your SMS provider platform will likely be equipped with basic features that let you text directly with customers. You could also consider implementing auto-reply keywords, which let customers receive more information by sending a one-word reply (for example, ‘Text DEAL for a discount code’ or ‘Text INSTA to check out our feed’.)<h3>11. Think outside the box</h3>While many merchants stick to sales promotions and order confirmations for SMS marketing, Australian online artwork retailer<a href="https://bluethumb.com.au/" rel="noopener noreferrer" target="_blank"> Bluethumb</a> has utilised a more creative marketing strategy. Post-purchase, they send every buyer an SMS with a photo tile of the artwork they purchased, which can be shared on social media.“With a couple of thumb clicks, the buyer can share it on their social sites: it’s quick and seamless and it plays to the strengths of SMS with a personalised message,” says Casson, who founded Bluethumb as well as SmartrMail. “The tiles are branded [with our logo], which drives awareness for Bluethumb. It’s been a game changer.”<h2>What does the future hold for SMS marketing?</h2>When Apple recently released the iOS 16 software update in the United States, it introduced a promotions tab for SMS, just like the promotions tab for emails.As a result, are business SMSs more likely to be left unseen and unread? “It could make SMS marketing less effective,” notes Siegel. “However, that is not necessarily going to be the case. What we're seeing with email is that people are less likely to unsubscribe if the email stays in the promotions folder, because it isn’t annoying them every day. They can shop around in the promotion tab on their own accord.”He adds that there is a lot of mileage for businesses who are doing SMS marketing right, and likens the current period of SMS marketing to the early days of online sponsored ads, which delivered huge sales for brands. He foresees SMS marketing becoming more sophisticated – with the possibility to even complete purchases via text – before saturation point is reached, and new mediums emerge.

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All references to any registered trademarks are the property of their respective owners. Clearpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

This powerful form of mobile marketing is a huge, but often underutilised, opportunity for business sales. Text for success with these 11 steps. 

A guide to SMS marketing during the festive season featuring tips and advice on how to drive sales. 

How SMS marketing can drive sales during holiday season 

How to use SMS to drive sales

How to use SMS to drive sales UK

It’s the most profitable time of the year – as long as merchants avoid these potential pitfalls.

Last year marked the biggest-ever Black Friday sales day, with shoppers spending an estimated <a href="https://www.reuters.com/business/retail-consumer/shortages-cast-shadow-over-britains-black-friday-2021-11-26/" rel="noopener noreferrer" target="_blank">£9.1 billion</a> that weekend.And that was just the beginning of shopping season, which ramps up as Christmas approaches.Every year, sales season offers online merchants and brick-and-mortar shops alike the opportunity to drive up basket size, boost revenue and secure new customers.But without careful consideration and thoughtful execution, sales can be a missed opportunity. This holiday season in particular, retailers will be dealing with the flow-on effects from inflation, interest rate rises and supply chain shortages, with experts predicting that shoppers will soon start tightening their purse strings.&nbsp;To prime your business for success, get familiar with these 10 sales season missteps – and how to avoid them.<h3>1. Failing to… prepare your website for an influx of traffic&nbsp;</h3>The season’s major shopping events, especially those occurring online, like Cyber Monday (November 28), can bring a surge of visitors to your e-commerce store.&nbsp;For context, in November 2019 the top 100 global shopping sites saw<a href="https://www.similarweb.com/corp/blog/ecommerce/retail-insights/the-numbers-are-in-2019-black-friday-cyber-monday/#:~:text=Traffic%20Gains%20%E2%80%93%202019%20Shopping%20Season,-As%20a%20whole&amp;text=Cyber%20Monday%2C%20the%20second%20day,of%20112%25%20over%20the%20baseline." rel="noopener noreferrer" target="_blank"> average daily visits increase by 22 per cent</a>, including a 137 percent spike on Black Friday.This is good news, but is your website equipped to handle the extra load? “You need to make sure that your site is easily accessible even when traffic is high,” says Roger Simpson, retail consultant and CEO of<a href="https://theretailsolution.com.au/?doing_wp_cron=1660789989.1983830928802490234375" rel="noopener noreferrer" target="_blank"> The Retail Solution</a>. Find out how many requests per second your content management system (CMS) can handle before the load time is affected. Is your website optimised for multiple devices? And does your checkout work well on both desktop and mobile?Fixing glitches and increasing your website’s speed can bring about real and tangible results. The<a href="https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Consulting/Milliseconds_Make_Millions_report.pdf" rel="noopener noreferrer" target="_blank"> Milliseconds Make Millions</a> report found that even a 0.1-second improvement in site speed saw retail customers spend almost 10 per cent more at the checkout.

“You need to make sure that your site is easily accessible even when traffic is high."

<h3>2. Failing to… order enough stock</h3>An “out of stock” sign on a product won’t just lose you a sale, it can leave a bad impression on new potential customers who are visiting your store for the first time during the sales. Follow these steps to manage inventory effectively and get in your Christmas orders as early as possible.-&nbsp;Calculate how much stock you need. Examine your sales reports and consider trends from the past few years.-&nbsp;Communicate with your suppliers or vendors. Check if there are changes to lead times over the holiday period, and if they’re offering any promotional or discount prices. Also, are they taking time off over Christmas?-&nbsp;Place orders. The earlier, the better. Consider ordering enough stock to last until mid-January, to see you through the sales season.-&nbsp;Create contingency plans. Draw up a plan of action in case a product is over or understocked. For the former, will you slash the prices – and when and by how much? For the latter, you’ll need to create a waiting list or reorder swiftly from your suppliers.<h3>3. Failing to… strategically target prospective customers</h3>The holiday season is a prime time to attract new customers and win back old ones, but the cost of advertising on social media is concurrently at a year-round high, as competition drives up the cost per click (CPC).<a href="https://leadsbridge.com/blog/ads-cost/" rel="noopener noreferrer" target="_blank"> According to one study</a>, the average CPC on Instagram is 70p in the first quarter of the year, spiking at more than £1.80 in late November/early December.Therefore, your advertising and marketing campaigns will need to be tactical.-&nbsp;Get in early. Invest in social media advertising at least a few weeks before Black Friday. This will be more economical than waiting until the last minute and it will also generate interest with prospective customers while they’re writing their shopping lists.-&nbsp;Target lookalike audiences. These are shoppers who have similar purchasing patterns to your existing customers. Social media platforms like Instagram and Facebook use data to find these prospective high-value customers and serve them targeted advertising.-&nbsp;Remarket to last year’s shoppers. Re-engage with past customers who’ve already done business with your brand. Examine 2021 data and reach out to customers who shopped from you during the last Black Friday Cyber Monday (BCFM) period or holiday season; email is the best platform for this, particularly personalised and targeted EDMs.

The holiday season is a prime time to attract new customers and win back old ones.

<h3>4. Failing to… hire enough additional staff</h3>Major sales can attract large volumes of eager customers ready to snap up a bargain. Will your current staff be able to handle the influx and provide the same attention to detail?&nbsp;“Make sure you have enough staff in store to cope when it’s very busy,” says Simpson. While hiring in advance is important every year, it’s especially pertinent for the upcoming Christmas sales season as restaurants and retailers struggle to find casual staff due to “very limited overseas students and visitors. Retailers need to try and over-employ if they can,” he continues.&nbsp;“There will be a lot of competition for the best Christmas casuals. They need to be fully trained by mid/late November as shoppers tend to shop earlier to avoid stock issues.”Amid labour shortages, you’ll need to stand out from the crowd to attract the right staff. Consider implementing an employee referral program as well as offering incentives to work for you (such as staff training, flexible schedules and company events).<h3>5. Failing to… utilise the power of SMS campaigns&nbsp;</h3>SMS marketing (or texting) is a relatively new way to connect with customers, but according to numerous studies, you can use it to promote and publicise your sales with significant cut-through.According to Lexer’s<a href="https://www.lexer.io/lp-2022-retail-holiday-guide" rel="noopener noreferrer" target="_blank"> Retail Strategies To Maximise 2022 Holiday Sales</a> report, SMS campaigns have a 97 per cent average read rate just 15 minutes after delivery.<a href="https://www.attentive.com/" rel="noopener noreferrer" target="_blank"> Attentive</a>, an SMS marketing provider, facilitated more than 18 billion texts between retailers and customers last year, with retailers making an average of $USD55 (£49) for every $USD1 (90p) spent on SMS marketing.Note that before sending marketing texts, your customers will need to explicitly opt-in. You can drive sign-ups by providing an incentive, discount or exclusive reward. Once your list grows, SMS will become a valuable communication channel for your brand. Read our full guide to SMS marketing here.<h3>6. Failing to… provide a range of delivery options</h3>During the sales season, competition is fierce – and for some shoppers, free or fast delivery might be the deciding factor when choosing where to make a purchase.Simpson suggests that retailers provide a range of delivery options, including click-and-collect. Free shipping is an enticing option (high shipping costs are widely regarded as the number-one reason for cart abandonment) and can help increase average order value. But if it’s not cost-effective for your business, you could offer it as a one-off promotional tool on peak sales days like Black Friday, Cyber Monday and Boxing Day –&nbsp;or offer it to customers who spend a certain amount.

SMS campaigns have a 97 per cent average read rate just 15 minutes after delivery.

<h3>7. Failing to… amp up your customer service</h3>As Australian skincare brand<a href="https://tbhskincare.com/" rel="noopener noreferrer" target="_blank"> tbh Skincare</a> has learned, more customers equal more questions.“There have been times [in the early years] where we’ve struggled to keep up with the level of customer service tickets during a sale period, especially across weekends and out of hours,” explains founder Rachael Wilde.“This is something we’ve worked on over the past 12 months to manage as we really value our customers' experience and feedback. If people are shopping during a sale, they want fast customer-service assistance.”Now, tbh Skincare rosters on online customer support 24/7 for the duration of major sales.Your customer support staff can cover everything from responding to emails to social media messages and pop-up web chats. Today, some businesses are opting to elevate their e-commerce offering with virtual personalised shopping experiences, where shoppers can connect with the customer service team via text, email or video and receive personalised product recommendations.<h3>8. Failing to… create a landing page</h3>When a potential customer clicks through to your e-commerce store from an email or digital ad, where do they land? Chances are, they’re taken to your homepage, which provides a general overview of your business. But this is a lost opportunity. Studies show that if you have a specific, short-term goal – such as promoting a sale or a particular product or range on sale – a dedicated landing page can help increase your conversion rate.&nbsp;Why? Because while a homepage is filled with countless messages and images – creating a “paradox of choice” for the shopper, a landing page has one clear call to action: ‘20% off for Black Friday’, for example. Some businesses create a landing page in the lead-up to a sale with a countdown clock and urge visitors to sign up to their EDM to stay informed. Once the sales event starts, the landing page can lead shoppers directly to the products they’re interested in.An effective landing page will have:-&nbsp;A clear and compelling CTA&nbsp;-&nbsp;A clutter-free design-&nbsp;One main headline-&nbsp;An engaging image-&nbsp;Concise copy that emphasises the value of the sale or deal-&nbsp;Minimal navigation – strip the page of menus and buttons that allow to the shopper to click away (unless it’s a CTA to Shop The Sale or Shop Gifts, which will link through to your product pages)-	Promotion of Clearpay as a way to buy now, pay later. (Visit <a href="https://www.afterpay.com/en-AU/business/resources/marketing" rel="noopener noreferrer" target="_blank">Clearpay’s marketing resources centre</a> for tips and examples.)9. Failing to… nail your pricing strategyAs a business owner, your aim is to sell. And against a backdrop of inflation, financially squeezed shoppers are seeking out value deals this season.But significantly dropping your prices isn’t always the smartest sales strategy. If you price a product too low and the deal is too popular, you’ll miss out on revenue and put pressure on already struggling supply chains; the consequent delays and unfulfilled orders have the potential to override your sales success.Think creatively and experiment with tiered discounts – where the more a customer spends, the larger their discount – or bundle sales, where you package complementary products together to drive up sales and reduce surplus inventory.10. Failing to… think beyond the single saleDuring peak sales periods, your business will likely experience an upsurge in traffic. So, make some noise while there are additional eyes on your brand&nbsp;As part of its 2021 Black Friday sales event, tbh Skincare released a new product: pimple patches. Wilde explains, “Not only were our customers super excited because this was a new product, but [as part of] our Black Friday offer [they were] free with any purchase over AU$80 (£45)”.“This was a great value add for our customers, wasn’t a huge discount in terms of margin for us, and it kept basket sizes up across the sale period.”&nbsp;Similarly, consider how to transform first-time customers into long-term loyal fans. Ensure you have a strategy to drive retention and repeat purchases, whether that’s via retargeting, for example, or a content series that introduces them to your brand.=

All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.

 It’s the most profitable time of the year – as long as merchants avoid these potential pitfalls

Avoid these common retail mistakes during the festive period, from not preparing for an influx of traffic to not offering multiple delivery options

10 common retail mistakes during holiday season 

10 mistakes retailers make every sales season 

10 mistakes retailers make every sales season  UK

Amid a pandemic, war and economic turmoil, we’re living in unique times. Consumers are being hit by the rising cost of living, while businesses are navigating supply chain delays, shipping issues, and rising costs of materials and commercial rent.But it’s not all bad news.In Australia, 34 per cent of<a href="https://marketing.wearemiq.com/holiday-shopping-whitepaper" rel="noopener noreferrer" target="_blank"> shoppers</a> are expected to spend more than they did in 2021.That said, 2022’s unique circumstances set the stage for a unique sale season in many ways. Here, experts weigh in on the current retail landscape – and share how merchants can adapt and thrive this holiday season.<h3>1.	Christmas will come early</h3>With inflation rising, budget-conscious shoppers are likely to be keen to get in early to beat the crowds and avoid price hikes and shipping delays. This means merchants need to be well-prepped for the season in October, if not before – <a href="https://www.clearpay.co.uk/en-GB/for-retailers/access/smarter-discounting/bfcm-checklist" rel="noopener noreferrer" target="_blank">read our small business checklist for the sales season here.</a>While Black Friday falls on November 25 this year, many businesses are rolling out sales earlier and earlier, even in October. This pull-forward strategy might help retailers stand out from the crowd. Of course, if you go too early and you’ll miss out on shoppers who are holding out for a better deal.The secret may be “leaking deals” through your EDMs and social media in October, teasing customers to drive excitement for your November sales, and even doing the odd flash sale on a particular product or line. Plus, keeping an eye on when competitors go on sale.

With inflation rising, budget-conscious shoppers are likely to be keen to get in early.

<h3>2.	Shoppers are ‘trading down’</h3>As inflation bites, shoppers will start to see their spending power falter. “Retailers will have to work harder to show both the quality and value of their goods,” says Helen Dickinson, chief executive of the British Retail Consortium. “Many households are already finding themselves ‘trading down’ – buying the cheaper ranges of goods – meaning that retailers must either show the value of higher-end brands or expand their existing affordable ranges.”The BFCM and pre-Christmas period is an opportunity for merchants to cater to cautious or cash-strapped shoppers with slashed prices.But between sale days, not every business can afford to be the cheapest on the market, especially when competing against retail giants. One way to retain customers in this landscape without constant discounting is to look to offering exclusive products. “Offering exclusive products makes price comparisons difficult,” explains Marie Driscoll, Coresight Researcher. “Exclusives, limited editions and collaborations with exciting brands drive shopper engagement and traffic.” Another option is a free gift with purchase [link]<h3>3.	Shoppers loyalties are changing</h3>Research suggests that, worldwide, we’re in the midst of a “loyalty shake-up” with more consumers switching to different brands in 2022 than in 2021 or 2002,<a href="https://www.mckinsey.com/business-functions/growth-marketing-and-sales/our-insights/how-us-consumers-are-feeling-shopping-and-spending-and-what-it-means-for-companies" rel="noopener noreferrer" target="_blank"> according to McKinsey research</a>.Hold on to your high-value customers by granting them early access to sales events or special discount codes – and think about how to take advantage of customers’ willingness to try new brands. How can you encourage consumers who haven’t shopped with you before to purchase with you for the first time? Make sure the path to purchase is as smooth as possible – that your website is fast, customer service is on hand, and that you offer a buy now pay later service like Clearpay.

“Retailers will have to work harder to show both the quality and value of their goods."

<h3>4.	Consumers are craving positivity</h3>A few years ago, a sale banner or discount email might have been enough to land a transaction, but customer behaviour and desires have changed. Today’s financially squeezed shoppers need more – including a reason to feel good.“If you go right back to why it is that people shop, it’s never just about getting a product; it’s the way that it feels when they [shop],” says retail expert Ingrid Maynard, director of<a href="https://thesalesdr.com.au/about/" rel="noopener noreferrer" target="_blank"> The Sales Dr</a>.“How do we make sure that at every step along the way, however [customers] choose to purchase, they have a positive experience? This year, in particular, it’s about linking spending money [with positivity], instead of triggering stress.”Consider how to communicate the benefits of your products (via signage, social media, EDMs). Value is an obvious one, but think beyond this – for example, how will shopping in your sales make your customers’ lives easier? Can they tick off their Christmas list early? Enjoy free or fast shipping? Or feel less overwhelmed as December gets underway?Bob Phipps, a US-based retail educational specialist who helps businesses better understand customer behaviour, emphasises that this year, retailers shouldn’t be too pushy with their sales. Cramming customers’ inboxes with discounts and coupons throughout the holiday season could be overwhelming for shoppers, plus it teaches them to always wait for a better deal.<h3>5. ‘Wow experiences’ will attract shoppers and drive sales&nbsp;&nbsp;</h3>Online retail has been growing consistently for more than a decade, but it was the pandemic-induced lockdowns of 2020 that saw the explosion of e-commerce.&nbsp;The upshot is that brick-and-mortar shops have their work cut out for them and will need to create environments and experiences that customers want to try to lure them off the sofa and into stores.&nbsp;“With the COVID scare abating, we’ve seen consumers returning to stores showing a pent-up demand for the social side of shopping, which includes in-store events as well as occasion-driven promotional activity,” says Driscoll, who recommends creating a “festival-like” atmosphere around BFCM sales.In-store offerings to entice and delight shoppers include access to experts in-store (such as brand founders or influencers); free product demonstrations (especially for beauty products); gift-wrapping facilities; personalisation for leather goods; and frictionless pay, including the option to buy now and pay later.

"We’ve seen consumers returning to stores showing a pent-up demand for the social side of shopping."

<h3>&nbsp;6.	Customers will expect multiple delivery and return options</h3>Whether your business is online, bricks-and-mortar or both, offering a range of delivery and collection options will be essential this year. Click-and-collect, for example, was normalised during pandemic lockdowns, and is now widely expected by shoppers (especially those who leave their shopping to the last moment).Driscoll believes that businesses should provide a “consumer-centric omnichannel strategy” whereby customers can receive their orders in multiple ways. Examples include BOPIS (buy online, pickup in-store); kerbside pickup; and buy online and return in-store.&nbsp;Another option is the ‘find in store’ function, where online shoppers can check stock levels for a particular product online, and then go to a store and view it or try it on in person.Each of these methods creates a “crossover experience between online and in-store”, Maynard says, not only making the customer’s life easier, but reducing shipping costs, minimising online returns, increasing foot traffic and driving up basket size. According to the International Council of Shopping Centers, more than <a href="https://www.icsc.com/news-and-views/icsc-exchange/icsc-finds-over-half-of-americans-use-click-and-collect?utm_source=Triggermail&amp;utm_medium=email&amp;utm_campaign=Post%20Blast%20%28bii-e-commerce%29:%20Consumers%20want%20to%20use%20BOPIS%20%7C%20Amazon%20push" rel="noopener noreferrer" target="_blank">half of adult shoppers use click-and-collect</a>, with 67 per cent of them adding additional items to their online trolley when they know they can pick them up immediately.

Experts reveal how consumers will shop, spend and save – so you can get ahead of the curve and maximise sales

Experts share how holiday season 2022 will be different - including how shoppers are spending - so you can get prepared.

Retail sales trends 2022: how holiday season will look different

6 Ways Retail Will Look Different This Sales Season

6 Ways Retail Will Look Different This Sales Season UK

We’ve made a list (and checked it twice) to help streamline and simplify the holiday season for merchants.

The countdown to Christmas is a time of festivities and frivolity for most people, but for retailers it means one thing: the biggest and busiest time of the year.“On average more than 30 per cent of all retail sales are done in the November to January period,” confirms Brian Walker, CEO and founder of<a href="https://retaildoctor.com.au/" rel="noopener noreferrer" target="_blank"> Retail Doctor Group</a>. “It’s a huge opportunity for retailers to make record sales, and it’s also an opportunity to sell through stock, increase cash flow, and continue to build a loyal customer database.”Last year, holiday shoppers spent<a href="https://www.prnewswire.com/news-releases/salesforce-data-reveals-global-digital-sales-surpassed-1-trillion-during-2021-holiday-season-301459450.html" rel="noopener noreferrer" target="_blank"> $USD1.14 (£1.028) trillion online worldwide</a>, with<a href="https://www.prnewswire.com/news-releases/salesforce-data-reveals-global-digital-sales-surpassed-1-trillion-during-2021-holiday-season-301459450.html" rel="noopener noreferrer" target="_blank"> the majority of shopping occurring early and late in the holiday season</a>, coinciding with sales events. Cyber Week (in late November) accounted for 23 per cent of global online holiday spend, followed by another sales rush between December 18 and 31.Which tells us that the holiday shopping season is a huge opportunity for merchants, whether you’re an e-commerce business or bricks-and-mortar shop. But there’s a lot to consider, including inventory, staff onboarding, markdowns, marketing and more.To streamline and simplify the sales season, we’ve compiled a detailed checklist for retailers, covering both the lead-up to the sales (which kick off in late November) and the final countdown to Christmas. Consider this the 12 weeks of retailing Christmas.

“On average more than 30 per cent of all retail sales are done in the November to January period.”

Unordered Highlight List

<h3>JULY - OCTOBER</h3><h3>24-12 weeks until Christmas</h3>Assess inventory and ensure all supply orders have been made.Choosing and ordering products to sell during the holiday season should be completed as early as possible – up to six months before sale season begins.Use reports from your e-commerce software to find out which products sold well in 2021 during the same calendar period and ascertain what quantities you’ll require. Remember, an “out of stock” message on your product page will mean missed sales and could leave a bad impression on potential customers.Generally, ordering stock for Christmas involves some calculated risk. It’s probably safe to increase order quantities on year-round best-sellers, but if you overstock a festive or Christmas-themed product, you’ll be left dealing with storage and cashflow issues.&nbsp;Decide on your markdown strategyDiscounts are a major sales driver during the holiday sales period, but small businesses need to be strategic in the promotions and deals they offer.Jane Magoffin, head of e-commerce at global retail marketing agency<a href="https://www.reloadmedia.com.au/?" rel="noopener noreferrer" target="_blank"> Reload Media,</a> suggests defining your business’s holiday season objectives before creating a markdown strategy.&nbsp;“Are you trying to target new customers or retain a certain amount? Or are you targeting a certain amount of spend per customer? Do you have a set revenue figure you want to hit this year? Knowing this will dictate what kind of sale or promotion you run during sales season, is it a bundle? A product launch? A standard percentage discount?”When marking down products, your aim is to find a middle ground between attracting customers, staying competitive and being profitable. Tiered discounts – based on how much a customer spends or how many items they buy – are a clever way to increase your average order value, while attractive holiday bundles will help get rid of unsold stock. But there are plenty of other ways to discount.

<h3>Amp up your visibility online</h3>There is a steady increase in customers searching for “Christmas gifts” from late August onwards, which means it’s important to be visible from this month. “They’re not necessarily buying yet, they’re … taking note of the brands who have what they want,” says Magoffin.&nbsp;Use this time to test and assess marketing tactics and start driving more shoppers to your e-commerce store. Your aim is to capture leads, showcase your products and plant the seed for future sales.Some strategies to try:&nbsp;Supercharge your SEOSearches for gifts and products will surge over the sales period, so it’s worth taking the time to<a href="https://www.afterpay.com/en-AU/business/access/seo-tips/how-to-improve-seo-ranking" rel="noopener noreferrer" target="_blank"> improve your website’s SEO ranking</a>. Get specific and utilise seasonal keywords like ‘personalised Christmas gift ideas’, ‘Christmas gifts on a budget’, ‘fast shipping for gifts’ or ‘holiday discount code’ for your best chance of success.&nbsp;Invest in social media ads“Ad costs are increasing and the closer you get to sales season, the more expensive it gets to gain customers’ attention - and there will be more advertisers competing for the same space,” says Magoffin. As such, if you’ve allocated budget to social media ads over Christmas, aim to get in early.Send engaging EDMsAccording to<a href="https://www.salesforce.com/blog/data-driven-holiday-predictions/" rel="noopener noreferrer" target="_blank"> data from Salesforce</a>, 68 per cent of shoppers pay more attention to emails from companies during the Christmas period. Throughout October, make sure you’re sending regular EDMs that engage your audience, show off your product offering and keep your brand top of mind, so that audiences are primed to spend when sales season begins.&nbsp;Read more tips on acquiring<a href="https://www.afterpay.com/en-AU/business/access/customer-acquisition/strategy" rel="noopener noreferrer" target="_blank"> new customers here</a>.&nbsp;

“Ad costs are increasing and the closer you get to sales season, the more expensive it gets to gain customers’ attention - and there will be more advertisers competing for the same space”

<h3>10 weeks until Christmas</h3>Optimise your websiteSales season means an enormous surge in customers shopping online, with e‑commerce sites likely to see increases of between 22 per cent to 110 per cent in traffic. That’s why it’s crucial to ensure that your website is (literally) up to speed.Make sure you’ve fixed any bugs, tested the load speed across all devices and optimised the customer checkout experience (this applies to bricks-and-mortar stores, too). For example, is your gift-card redemption system set up, and will you be accepting flexible payment options like Clearpay?Next, streamline usability and optimise your website’s design. “Popular items should be clearly displayed and easy to find,” notes Walker. “Be thorough in terms of your layout so that buying from you is an enjoyable experience.”You may also want to create some seasonal banners and website assets that capture the holiday spirit – the equivalent of visual merchandising for an e-commerce store. These will go live in November and December (find free, printable templates on<a href="https://www.canva.com/en_gb/" rel="noopener noreferrer" target="_blank"> Canva</a>). Or take a look at Clearpay’s <a href="https://www.afterpay.com/en-AU/business/resources/marketing" rel="noopener noreferrer" target="_blank">marketing resources centre</a> for more templates and tips.

“Popular items should be clearly displayed and easy to find.”

Recruit new staffThe busiest time of the year naturally comes with an increased demand for staff – both working the store floors and behind the scenes.“You’ll have an influx of people [making enquiries] in your direct messages and sending comments and queries - so make sure you have enough hands on deck for that,” says Magoffin. “Equally, warehouse and logistics staff will be integral. Recruit now [in October] if you need more resources.”The catch? Amid a global labour shortage, recruiting is notoriously difficult. To attract a larger pool of candidates, streamline the application process; highlight your strong company culture; offer benefits and perks; and allow as much flexibility in the role as possible.

<h3>NOVEMBER</h3><h3>8 weeks until Christmas</h3>Re-engage with potential customersAs you move into November, it’s time to <a href="https://www.afterpay.com/en-AU/business/access/customer-acquisition/funnel" rel="noopener noreferrer" target="_blank">nurture the leads</a> you’ve already attracted and start getting potential customers excited for sales season.“Engage with those customers who found your brand when they were building their wish list weeks ago,” advises Magoffin. “Retarget them on social media and launch your [holiday sales] email marketing campaign – let your customers know whether you’ll be putting products on sale, so they know what to plan for and look forward to.”Set your shipping strategyA convenient shipping and delivery policy could be the difference between securing a sale and losing it.Review your shipping methods and pricing and revisit whether the strategy is working for both the business and for your customers. Consider comparing your shipping policy to that of your competitors (as your customers are likely to do).&nbsp;Then, communication is key. Display your shipping policy on your website, at checkout and in order-confirmation emails, and be realistic with customers about when they should expect their deliveries. Also emphasise the cut-off date for shoppers to receive orders before Christmas.

“Engage with those customers who found your brand when they were building their wish list weeks ago."

<h3>7 weeks until Christmas</h3>Finalise creative assets and continue online marketingAt this point, the start of sale season (Black Friday) is just three weeks away. “By now, you want all of your sale season assets finalised – that is, creative for your EDMs, social ads and even physical stores – with your sale proposition super clear,” says Magoffin.&nbsp;&nbsp;You can also start dialling up your paid ads and increasing ad spend to retarget customers who have previously engaged. Your EDM campaign should start to include strong sales and Christmas messaging, and you might want to send teaser emails hinting at your upcoming Black Friday and Cyber Monday promotions, or themed gift guides.Onboard new staff“The bugbear of many consumers during sales season is that staff in physical stores don’t know a lot about the product,” says Walker. “Ensure your staff are well set up and coached in your product and how best to deliver it. By mid-November you want them trained up and ready to go.”&nbsp;Training should also be complete or nearly complete for any new customer support and warehouse staff.

<h3>6 weeks until Christmas</h3>Go live to VIP customersChristmas might still be more than a month away, but it’s less than two weeks until Black Friday. Use this time to reward your most loyal and valuable customers. “Make sure they feel important and valued,” says Magoffin, who recommends offering VIPs exclusive access, early-bird offers or added value around two weeks before Black Friday.“As they are already your most engaged customers, you have an even greater chance of converting them with a ‘beat the rush’ style offer. If you can find a way to personalise it, even better.”Ensure your store looks enticingBy mid-November, your physical shopfront should make people want to step inside. Your decorations or festive theme should be apparent, and your promotional offers should be clearly signposted.&nbsp;“Merchandising adjacency is also hugely important – increase the average spend by placing similar items together like socks next to shoes, for example. This is very valuable for online retailers, too,” says Walker.Offering in-store add-ons, such as gift wrapping, can also enhance customer experience.

"Make sure [customers] feel important and valued."

Incentivise staffSales season is an important time for retailers – and it can be a stressful one. “Keeping staff engaged and motivated is really important,” says Walker, who suggests introducing incentives to help gamify the experience and drive them to exceed targets.Ensure you have rostered on your top performers during the busiest periods - and encourage everyone to have fun. “It’s Christmas, after all,” adds Walker. <h3>5 weeks until Christmas (and 1 week until sales season!)</h3>Go live with your salesWhile Black Friday falls on Friday November 25 this year, Magoffin suggests launching your sales one week earlier. As the saying goes: first in, best dressed.“If you wait until Black Friday to launch your sale, you’re going to lose so many customers,” she says. “Brands are going live earlier and earlier each year. One week before is the strongest time as it’s close enough to the sales season that customers won’t be holding out for a better deal, but early enough that they won’t already be overwhelmed.”

"If you wait until Black Friday to launch your sale, you’re going to lose so many customers."

<h3>DECEMBER</h3><h3>4 weeks until Christmas</h3>Test and assess your sales strategyBy now, you’re in the thick of sales season. Amid the frenzy, take some time to examine the market, size up your competitors and review your own promotions.Says Magoffin, “After the first big bang, you’re testing the efficacy of your campaign … What is more effective for your customers, EDMs or SMS? What’s going to move the needle? When you have high volumes of traffic like this, you can gain valuable information quickly – and make better decisions faster.”&nbsp;<h3>2-3 weeks until Christmas</h3>Refine your sales strategyAfter the Black Friday and Cyber Monday mayhem have settled, make any necessary changes to your strategy for the upcoming pre-Christmas rush.&nbsp;“During the sales season you’re assessing and refilling your shelves as much as your stock will allow,” says Walker. “Look at what’s been moving quickly, and what you’d like to move faster. Ensure your store is looking pristine once more, re-merchandise if you need to.”Consider whether you can add extra value to your customers, such as free express shipping. Is there any way you can incentivise last-minute purchases?

"Ensure your store is looking pristine once more, re-merchandise if you need to."

<h3>1 week until Christmas</h3>Lure last-minute shoppersThis is the time to promote last-minute purchases, such as gift cards, and to cater to shoppers who are time-poor and will welcome suggestions for extra gifts.“Ensure you’ve implemented merchandise adjacency,” says Walker, who explains that retailers can identify any stock they want to clear and discount it as part of a gift bundle.&nbsp;Give customers a reason to buy from you againThe final sales rush will flow into Christmas – one day of reprieve for retailers – followed closely by the Boxing Day sales, which you’ll be well-equipped to navigate by now. But your sales strategy doesn’t stop here. “The sales season brings such an influx of new customers - don’t let it go to waste,” says Walker. “Now you have them in your database, you can nurture the relationship and encourage them to come back and ultimately retain them as loyal customers.”

We’ve made a list (and checked it twice) to help streamline and simplify the holiday season for merchants

Get ready for Black Friday Cyber Monday with this small business BFCM checklist outlining everything you need to be prepared.

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And why it’s effective as a sales strategy.

Who doesn’t like being given a free gift? Very few people - and that stands true when the giver is a brand just as when it’s a friend or loved one. Gifts with purchase are one of the most popular promotions retailers can run when done well, and are used frequently by fashion and homeware retailers as well as beauty brands, such as Clinique and Lancome.But it’s not just big, global brands that succeed with free gifts with purchase (GWP).A recent <a href="https://www.afterpay.com/en-AU/afterpay-day-unlocked" rel="noopener noreferrer" target="_blank">survey</a> by Afterpay (the Australian arm of Clearpay) found that shoppers love gift with purchase promotions, and that a huge majority (85%) are especially interested in gift with purchase promotions held by small businesses.The survey found shoppers are willing to spend £30 and £150 to secure a gift.<h2>What are the benefits of a free gift promotion?</h2>Retail strategy consultant Catherine Erdly, who has more than two decades’ industry experience and runs<a href="http://www.resilientretailclub.com/" rel="noopener noreferrer" target="_blank"> Resilient Retail Club</a>, says that offering a gift with purchase is a premium offer from a brand, especially compared to discounts.“Free shipping, free gift wrapping, spending £50 and getting a £5 gift voucher and gifts with purchase are all premium promotions,” she explains. “Gift with purchase is especially effective because it feels nice for the customer and can appear to be a reward for their loyalty.”By comparison, deep discounting can cheapen a brand, particularly if discounts are run too frequently.<h2>Tips to run a successful gift with purchase promotion...</h2><h3>1. Choose your frequency.</h3>Some businesses choose to offer gift with purchase promotions several times a year. Others – especially some skincare and beauty brands – offer them almost constantly.Whatever approach you take, ensure that gift with purchase promotions are planned out and included in your 12-month marketing strategy.Keely Parsons, founder of wax melt brand <a href="https://www.clearpay.co.uk/en-GB/for-retailers/access/success-stories/sassy-shop-wax-keely-parsons-interview" rel="noopener noreferrer" target="_blank">Sassy Shop Wax</a>, which offers Clearpay as a method of payment to customers, usually has a gift promotion running. “One of our main points of difference is our wide range, so by giving away two free wax melts worth £7 with every purchase, people get to try more variety,” she explains. “The promotion also improves our conversion rate.”&nbsp;Remember that gift with purchase promotions can work particularly well on key gifting occasions such as Mother’s Day, Father’s Day or Christmas, as shoppers can buy a present for their loved one and receive a small treat for themselves.<h3>2. Pick your price point with care.</h3>When it comes to planning your gift with purchase strategy, start by looking at your average order value.“If your average order is £50, then running a promotion where you give a gift with every £50 spent is a mistake,” Erdly explains. “It doesn’t nudge up the average purchase, or basket size, at all.”&nbsp;She suggests setting the minimum spend for a gift with purchase at 10 to 20 per cent higher than your average order value.<h3>3. Double check your margins.</h3>Not all gifts with purchase work positively for brands. Erdly says: “The key thing is that you make sure that the value of what you’re giving away isn’t too great - you don’t want to make less money.”The vacuum cleaner company Hoover ran a promotion in the nineties that serves as a cautionary tale to all retail brands.In 1992, the UK branch of the company offered two free round-trip flights to the US to any customer who spent over £100. The promotion was intended to boost dwindling sales. Instead, it was a deal far too sweet, with the flights worth £600 – which was six times the price of the minimum spend to qualify.Hoover made two assumptions: firstly, the brand hoped that customers would far exceed the minimum spend, offsetting the price of the flights. And secondly, it believed that only a small proportion of customers would redeem the offer post purchase.Neither was correct. The clamour for £119.99 Hoover vacuum cleaners from department&nbsp;stores led<a href="https://www.newspapers.com/image/258781614/?terms=hoover%2Bfree%2Bflight" rel="noopener noreferrer" target="_blank"> The Observer</a> to write: “If left uncontrolled, Britain could soon be knee-deep in Hoover Turbomaster Uprights.” Though the company generated around £30m in gross sales from the promotion, the cost of flights was - at a conservative estimate - more than £100m.<h3>4. Choose your gift carefully.</h3>Quite simply, the more desirable gift, the better impact the promotion will have, Erdly explains.&nbsp;&nbsp;“Make sure consumers appreciate the gift,” she says. “One of the big clothing retailers I worked with would offer a free necklace if a customer spent over £100. It felt like a treat for the shopper. Sometimes, they would take a slow seller, and instead of discounting it they would give them away. If you know you want to clear stock anyway, this can be effective, but beware, if it’s something that no one wanted anyway it’s not going to be most exciting gift.”&nbsp;<a href="https://www.clearpay.co.uk/en-GB/for-retailers/access/success-stories/sassy-shop-wax-keely-parsons-interview" rel="noopener noreferrer" target="_blank">Sassy Shop Wax</a>’s Keely Parsons says: “Try to craft an offer that not only is attractive for your customers but supports your brand’s unique selling point, or positioning.” So, for example, it’s common to see brands that offer a signature scent across different products, from perfume to body lotion, bath oil and candles, choosing a gift that is likely to extend a perfume customers’ use of the range.&nbsp;<h3>5. Promote your promotion.</h3>Once you’ve decided on your gift with purchase, start planning how you will promote it. “Market the promotion as a real bonus for customers,” Erdly advises. “Make sure you tell everyone about it: use social media; write to your email list; create a banner or pop up on your website.”

And why it's effective as a sales strategy.

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How to pull off a gift with purchase promotion UK

<h2>A guide to smart retail discount strategies that won’t damage your brand – or your bottom line.</h2>

Any shopper will tell you that getting a bargain feels good.&nbsp;In fact, buying an item on sale even produces a neurochemical reaction, flooding the brain with dopamine, according to scientists.&nbsp;It’s no secret that retailers love sales too. Discount promotions are a tried-and-true way to drive conversions, free up cash, re-engage lapsed shoppers, attract new customers and inspire customer loyalty.But while lowering prices might deliver short-term benefits, it’s important to be strategic and smart in your approach; there’s little point in sacrificing margins just to make sales.&nbsp;&nbsp;It’s also critical to ensure that the type of discount you’re offering matches your products, customer base and objectives. This can all be achieved by developing a intentional retail discount strategy for your business.

<h1>The dangers of discounting</h1>Businesses considering launching a discount need to weigh the potential pitfalls before they start slashing prices. Some of the risks can be mediated by developing a laser-focused retail discounting strategy before slashing prices.

<h2>Brand dilution</h2>Discounting may seem like a straightforward way to boost sales, but too much discounting can tarnish your brand. Constant discounting – or discounts that are too big or seem too good to be true – can undermine perceptions of your brand or of the quality of your products.&nbsp;

<h2>Training customers to wait for sales</h2>Some brands always seem to be on sale, to the point where customers may well be waiting for the next sale to begin before purchasing. This means those retailers miss out on selling products at full price – and on bigger margins.

<h2>Bringing in conditional shoppers</h2>The ideal customer is one who spends a lot and spends often. That’s because a customer base of loyal, regular shoppers means less investment in customer acquisition. However, sales and discounting can attract conditional shoppers, who are only looking for the cheapest price, rather than shoppers who are likely to become regulars.&nbsp;

<h2>How to stay profitable while discounting</h2>Any discounting strategy should be used in combination with data-driven marketing, exceptional customer experience and a high-quality product to drive customer loyalty.&nbsp;However, the first step when considering a discount promotion is to understand what the initiative means for the business.&nbsp;

<h2>Set your discount objectives&nbsp;</h2>“Once you have determined the outcome you want, you can choose a discounting strategy that will also be healthy for the bottom line of the business,” says Jordan Sim, director of product management at e-commerce service platform <a href="https://www.bigcommerce.com/?utm_source=AfterpayAccess&amp;utm_medium=thoughtleadership&amp;utm_campaign=discounting" rel="noopener noreferrer" target="_blank">BigCommerce</a>.

Examples of discounting objectives include:Customer acquisitionIncreasing customer loyalty&nbsp;Increasing average order value (AOV)Re-engaging lapsed customersTesting a new product in the market&nbsp;Shifting old stock&nbsp;

So, for example, retailers looking to shift old stock might consider a retail discounting strategy like a bundling promotion, where customers buy one product and receive a second at a significantly discounted rate.Whereas retailers aiming to boost average order value might look at offering free shipping with a minimum spend, to encourage customers to spend more.

<h2>How Clearpay works with discounts</h2>Jordan says that buy-now-pay-later solutions like Clearpay have synergies with discounting strategies, as both look to drive up AOV. “Discounting has a psychological effect on customers where they feel they’re getting a greater deal. Offering Clearpay adds to the value the customer receives,” he says.

<h2>Consider your customers</h2>“A successful loyalty discounting strategy needs to consider the products you sell, your customers’ buying cycles, their behaviour and your industry, says Rad Mitic, head of partnerships, APAC at e-commerce marketing platform&nbsp;<a href="https://www.yotpo.com/" rel="noopener noreferrer" target="_blank">Yotpo</a>.&nbsp;For example, a beauty brand which sells small products frequently might consider a discount-based point system, where they’re rewarded with loyalty points for spending more. “This will encourage them to increase their basket size,” says Rad.

“Give customers more reasons to choose your brand over a competitor.”

“But a kitchen appliance business with a longer purchase cycle would want to focus on immediate discounts, like a sign-up bonus for first purchases. The idea is to give customers more reasons to choose your brand over a competitor,” he says.&nbsp;

<h2>Case study: Aromababy&nbsp;</h2>Natural skincare company Aromababy is an example. Founder Catherine Cervasio agrees that discounting can be a great way to win new customers, but says that a targeted, brand-specific strategy is essential.&nbsp;

“Our customers don’t need to repurchase our products for up to two months for our wash products and for up to six months for our creams and lotions, depending on how often the customer uses the product and whether our brand is used exclusively.&nbsp;“With that in mind, we don’t constantly bombard customers with marketing and special offers,” she says.

Instead, Catherine says that customer loyalty is her priority. “We have been in business for almost 27 years and a second generation of customers are now buying from us. We’ve had parents bring daughters into our showroom and share their story of how they used Aromababy 20-plus years ago. Customer loyalty is hugely important for us and puts our brand in front of a new set of customers.”As a result, instead of regular discounts, Catherine offers discounts to first-time customers when they sign up to Aromababy’s free e-club and place an order online.&nbsp;

“This encourages parents to try our products over a supermarket brand,” she says.

“Don’t constantly bombard customers with special offers.”

<h1>Choosing the right discount&nbsp;</h1>Every discounting strategy has a different set of pros and cons and it’s important to understand what these are before deciding on the right strategy for your business.&nbsp;

<h2>Discounts to first-time customers</h2>This is an excellent way to attract and acquire new customers. Retailers can also consider using discounts to encourage shoppers to sign up to loyalty programs, like Aromababy’s e-club or newsletter lists.&nbsp;

<h2>Referral discounts&nbsp;</h2>Happy customers are a great marketing tool. In fact, according to a Kantar survey, <a href="https://www.marketingcharts.com/cross-media-and-traditional/word-of-mouth-113276" rel="noopener noreferrer" target="_blank">93 per cent of consumers</a> trust recommendations from friends or family over brand advertising.&nbsp;Brands can consider a number of different referral strategies, says Rad. “Think through who benefits from the discount – the referrer, the referee or both.&nbsp;Offering discounts to both customer types incentivises two potential future purchases, but it also means accounting for greater profit liability,” he explains.

<h2>Special sale days</h2>Many companies recognise the value in sale initiatives like Click Frenzy, Black Friday and Boxing Day sales. These promotions can be game-changers for sales in e-commerce as they create a ‘fear of missing out’ on bargains among shoppers.&nbsp;“These promotions are used to move stock and acquire new customers,” says Jonathan Jeffries, co-founder of startup growth and scale firm <a href="https://www.thinkandgrowinc.com/team-members/jonathan-jeffries" rel="noopener noreferrer" target="_blank">Think &amp; Grow</a>.&nbsp;If you discount too deeply on these days, customers may wait for these promotions and not buy from you at other times of the year. So think about how these days fit into your broader promotions strategy. You may hold off discounting premium products on these days and use sales events to move old stock, for instance.&nbsp;

<h2>Amount versus percentage discounts</h2>The advantage of offering a discounted amount in pounds and pence versus a percentage is that a defined amount discount makes it clear what the savings are for both the customer and the brand. “The downside is that it’s a direct margin erosion – there’s no way to hide that,” says Jordan.Catherine says Aromababy has tried both approaches. For instance, it has offered customers a discount of the equivalent of five pounds once they had spent a certain amount. The alternative approach is to offer, say, a 20 per cent discount if they spend a certain amount.&nbsp;“The success of this strategy depends on whether our target audience is ready to make a purchase at the time we are marketing,” says Catherine. “If they don’t need to buy – for instance, the customer may be a new parent who has been given skincare products as gifts – regardless of the offer, they won’t be purchasing.”

<h2>Loss leaders&nbsp;</h2>This involves offering a deep discount on one product line to encourage customers to pay full price for other products the brand sells. This strategy can make sense if the brand can be sure it will make up for the initial loss in future sales. This strategy should be used with caution because it can cheapen the brand and compromise future sales.&nbsp;

<h2>Offering a discount for pre-ordering a product&nbsp;</h2>Advantages include up-front cash flow, generating excitement for a new product and making customers feel special by allowing them early access. The downside? If there’s an overwhelming amount of interest, brands need to be confident their supply chain is robust enough to meet a large volume of orders.

<h2>Personalised offers&nbsp;</h2>

“There are no real cons to personalisation in any aspect of retail.”

A customer relationship management tool can help track customer profiles and spending – and allow brands to offer targeted discounts. This provides customers with a very tailored offering, with personalisation helping to drive conversion rates. “There’s no real cons to personalisation in any aspect of retail,” says Jordan.

<h2>Buy one, get one free (BOGOF)</h2>This delivers added value for customers and does not necessarily need to compromise margins – particularly if the second “free” product is old season or nearly expired stock, or customers are offered brand merchandise as the added extra.&nbsp;This enhances the customer’s perception of value but has a limited impact on the brand’s margins. This strategy is very popular with food brands such as Pizza Hut and Domino’s.&nbsp;

<h2>Limited-period discounts&nbsp;</h2>Creating a sense of urgency or scarcity is one way to encourage shoppers to spend. In this case, it’s about defining a specific sale period. The downside? “The promotion might be wasted if the offer reaches a customer when they’re not in a position to purchase,” says Jordan.Ultimately, the discounting strategy that will work best will depend on the brand, the products or services sold and the ideal outcome for the business. It’s also important to remember different discounting strategies may work for brands at different times. Regardless of which strategy a brand goes with, combining discounting with Clearpay only helps to enhance the offer and the perceived value for customers.

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Looking for a sales strategy that won't damage your brand? Here's how to offer discount promotions - the smart way.

Want a smart retail discounting strategy that boosts profits? Read here for our guide.

Retail discounting strategy: how to slash prices not profits

Retail discounting strategy: How to discount without slashing profits

How to discount without slashing profits

<h2>Want to maximise sales? You need to start now – with these sales strategies</h2>It’s that special time of the year – a key time for retailers to engage and connect with new and potential customers.&nbsp;The Retail Doctor Bob Phibbs predicts that there’s going to be a special energy given that “2020 was essentially a missing year for us. For most people, the last holiday they would have spent together was 2019 – it’s been two years since then”.Here’s how to employ sales tactics that will help you stand out and drive sales.

<h2>1. Upselling</h2>Upselling is something every retailer should consider for its arsenal of retail selling techniques and strategies. This strategy is all about generating incremental revenue by persuading a customer to purchase a more expensive comparable product. For example, in a sports shoe shop, a sales assistant might persuade a customer to buy a more expensive pair of trainers.&nbsp;

<h2>How to upsell in store</h2>Upselling in-store starts with customer rapport, says Bob. “You have to make a connection before you start talking about product.”&nbsp;Once that bond is established, the key is to understand a customer’s motives. “Engage a stranger and discover the shopper,” says Bob. “Just because customers are looking for one thing, doesn’t mean there aren’t other things they’re interested in… the ‘curious’ is where the money is.”The key, he continues, is ensuring that employees understand your products and are trained to focus on value plays, rather than just getting caught up on price.&nbsp;

<h2>How to upsell online</h2>

One way to upsell online is to offer free shipping if customers spend more. This is a tactic <a href="https://www.asos.com/?r=1&amp;xaffid=17295" rel="noopener noreferrer" target="_blank">ASOS</a> employs well.&nbsp;Many retailers use this strategy – because it works. Customers will spend more to avoid paying for shipping, even if it ends up costing more than the original total price.&nbsp;

<h2>2. Cross-selling</h2>Like upselling, cross-selling is all about generating incremental revenue. However, unlike upselling, where customers are encouraged to buy a more expensive version of the same product, cross-selling involves inviting customers to buy related or complementary products.&nbsp;For example, at a shoe shop, a sales assistant might suggest buying a couple of pairs of new running socks or a cap to go with their new shoes.The way Bob sees it, “The first product you sell capitalises on what it took to get someone there – it covers the cost of your marketing, your labour… the second item is all profit.”&nbsp;In other words, “the first item pays the bills, the second item is the gravy”.

<h2>How to cross-sell in store</h2>As with upselling, it’s crucial to establish a bond with customers first. After that, says Bob, “it’s natural to say ‘You know, it took you so long to find the right fit for you, these also come in a green and plaid’ and [the customer] says ‘Oh, great’ – and that’s the adding on.”

<h2>How to cross-sell online&nbsp;</h2>Online, the key to cross-selling is artificial intelligence (AI) – or using a computer algorithm to offer suggestions, such as:<ul><li>‘People who buy this, normally buy this’</li><li>‘Related products you might like’&nbsp;</li><li>‘Pair that skirt with this top to create this look’</li></ul>Take <a href="https://koala.com/en-au" rel="noopener noreferrer" target="_blank">Kóala</a>. It’s known for its mattresses – but now it has branched into furniture.&nbsp;

By using an ‘Every corner of your house’ message, it isn’t overriding the original product it wants customers to purchase – its mattresses – it’s encouraging customers to also consider other rooms in their home. It’s cross-selling, and doing so in a way that seamlessly employs tried and tested retail sales techniques and strategies.

<h2>3. Brand story</h2>One of the best ways to connect with customers is by giving them a story to connect with – your brand story.&nbsp;The goal of your brand story is to inspire an emotional reaction – which leads to a personal connection with customers. But your brand story isn’t just a historical overview of how you came to be where you are, it’s your brand’s:<ul><li>Purpose and mission&nbsp;</li><li>Values and message</li><li>Origin story&nbsp;</li><li>Why you sell what you do&nbsp;</li><li>Tone of voice</li></ul>

<a href="https://eu.patagonia.com/gb/en/home/" rel="noopener noreferrer" target="_blank">Patagonia</a> is a great example of a brand with a clear and engaging brand story. Not only does Patagonia tell the story of how and why it was launched on its website, but its environmental values, outdoor ethos and commitment to grassroots activism are threaded throughout its stores and e-commerce store.&nbsp;

<a href="https://www.lululemon.co.uk/en-gb/home" rel="noopener noreferrer" target="_blank">Lululemon </a>is another brand that authentically communicates its brand story and “deep love of sweat”. Rather than focusing on its historical “origin story”, Lululemon conveys its feel-good message at every touchpoint. It’s on the wall of its shops, in its inspirational imagery and on its reusable shopping bags.&nbsp;

While it began as a yoga brand, it has become a much-loved technical apparel brand that their customers align with for its values and purpose because they connect to the brand’s story.

How can you integrate your brand story into your shop and website?&nbsp;<ul><li>Don’t just think about marketing posters – consider wall decals, art, quotes, messages.&nbsp;</li><li>Take it beyond your logo and integrate your colours, fonts and the feel of your brand into your shop design and layout.&nbsp;</li><li>Can you give them something to take away so they remember you?</li></ul>

<h2>4. Impulse buys</h2>Impulse buys are separate to upselling and cross-selling; they are a more passive and random retail sales strategy involving strategically placing products in customer’s eyesight, most commonly as they’re about to buy.Holiday season is ripe for impulse buys as shoppers look for “stocking fillers”, a small gift for a colleague, cards or wrapping paper. Discounted items make great impulse buys as they’re attention-grabbing.&nbsp;The trick to encouraging impulse buys is to make it easy for shoppers to feel, touch, hold and smell products. Bob recommends providing a basket, as “when the hands are full, impulse items stay on the shelves”.Beauty juggernaut <a href="https://www.sephora.com/" rel="noopener noreferrer" target="_blank">Sephora</a> makes impulse purchases a sport. Not only does the brand provide shoppers with baskets, but customers are led between two aisles of mini goodies as they line up to make a purchase. Online it employs a similar tactic by suggesting discounted items as you check out.&nbsp;This is a retail sales strategy used by many of the worlds most successful retailers. There’s a reason <a href="https://www.kmart.com/" rel="noopener noreferrer" target="_blank">Kmart</a> has moved its checkout counters to the middle of the shop – surrounded by products.However, the key with impulse buying is ensuring it doesn’t override the customer’s main purchase – impulse buys are extras, not the main event.&nbsp;&nbsp;

<h2>5. Clienteling</h2>Clienteling is a key retail sales strategy retailers use to connect with their customers and make them feel valued.&nbsp;It’s about using customer information, preferences and behaviour to create an intimate, elevated experience for every customer.&nbsp;&nbsp;Luxury brands and department stores are adept at clienteling; many offer services such as personal styling, in-store tailoring or monogramming, while others offer house calls or hold exclusive in-store events to show VIP customers new season collections.However, since the pandemic, many mass labels have begun to offer clienteling services that are more traditionally associated with luxury brands. For example, activewear brand Lorna Jane was one of many brands that began offering online virtual appointments during the pandemic.&nbsp;

<h2>6. Personalisation</h2>Personalisation isn’t just adding someone’s name to your eDM; it’s about using sophisticated customer relationship management tools like Klaviyo or <a href="https://www.g2.com/products/emarsys/reviews" rel="noopener noreferrer" target="_blank">Emarsys</a> to track customer behaviour and deliver a personalised experience.&nbsp;Brands like <a href="https://www.mecca.com.au/" rel="noopener noreferrer" target="_blank">MECCA</a> and <a href="https://www.adidas.co.uk/" rel="noopener noreferrer" target="_blank">Adidas</a> do this well through their strategic membership programs. They track what customers are purchasing and what product they love so they can target the right promotions to the right customers. And, most importantly, they reward their customers accordingly – with things they know they love.&nbsp;

Learn more about how to get started with personalisation <a href="https://www.afterpay.com/en-AU/business/access/customer-service/personalised-customer-experience" rel="noopener noreferrer" target="_blank">here</a>.

Looking for Retail Sales Techniques and Strategies? You need to start using these retail strategies now.

Looking for Retail Sales Techniques and Strategies? You need to start using these retail strategies now