Discounting has long been a go-to strategy for many fashion ecommerce brands to drive sales and attract customers. However, this approach can have long-term negative impacts on brand perception and profitability. Instead of relying on discounts, brands can explore alternative strategies like Try with Mirra’s ‘Home Try-On’ solution, which replicates the in-store changing room experience at home for online shoppers.
The Pitfalls of Constant Discounting
Eroding Brand Value
Frequent discounts can erode the perceived value of your brand. When customers become accustomed to regular sales, they may start to question the actual value of your products. This perception can lead to reduced brand loyalty, as customers may only shop during sales periods, waiting for the next discount rather than purchasing at full price.
Impact on Profit Margins
While discounts can boost short-term sales, they often come at the expense of profit margins. Lowering prices to drive volume can result in slimmer margins, which may not be sustainable in the long run. Brands must carefully balance the immediate sales boost against the potential long-term financial health of the business.
Customer Expectations
Offering discounts year-round can set unrealistic expectations among customers. Once shoppers get used to frequent sales, they might resist purchasing at regular prices. This behavior can lead to a vicious cycle where brands feel pressured to continually offer discounts to maintain sales volume, further diminishing profitability and brand integrity.
The Benefits of a ‘Home Try-On’ Solution
Enhancing the Customer Experience
Try with Mirra’s ‘Home Try-On’ solution provides an innovative alternative to discounting. This service allows customers to order items, try them on at home, and return any unwanted pieces, replicating the in-store changing room experience. This approach can significantly enhance the customer experience by providing a risk-free way to shop online.
Increasing Sales
By allowing customers to try before they buy, the ‘Home Try-On’ service can help increase the number of items purchased. Customers are more likely to keep items they have tried on and are satisfied with, leading to higher conversion rates and fewer exchanges. This service can also encourage customers to order multiple items, increasing the likelihood of a sale.
Building Brand Loyalty
Providing a seamless and convenient shopping experience can build stronger customer loyalty. When customers feel confident in their purchase decisions, they are more likely to return for future purchases and recommend the brand to others. The ‘Home Try-On’ service can foster trust and satisfaction, key components of long-term brand loyalty.
Why Year-Round Sales Can Be Harmful
Diluting Brand Identity
Constant sales and discounts can dilute your brand’s identity. Premium brands, in particular, may struggle to maintain their upscale image if they are always on sale. Consistently offering discounts can make it difficult for brands to differentiate themselves in a crowded market, as customers may perceive the brand as less exclusive or high-quality.
Encouraging Price-Sensitive Shoppers
Year-round sales tend to attract price-sensitive shoppers who are less likely to develop brand loyalty. These customers may switch to competitors offering lower prices, making it challenging for brands to retain a stable customer base. Focusing on providing value through quality, service, and unique experiences can help attract more loyal, long-term customers.
Financial Strain
Regularly offering discounts can put a strain on financial resources, affecting cash flow and overall business sustainability. Brands need to invest in marketing, product development, and customer service to stay competitive. Continually cutting prices to boost sales can limit the funds available for these crucial areas, ultimately harming the brand’s growth and innovation potential.
Conclusion
While discounting may seem like an easy way to drive sales, it can have long-term negative effects on brand value, profit margins, and customer expectations. Alternatives like Try with Mirra’s ‘Home Try-On’ solution offer a sustainable way to enhance the customer experience, increase average order value, and build brand loyalty. By focusing on quality and convenience rather than price cuts, fashion ecommerce brands can create a more robust and profitable business model.
