Finally! In case the email spam, stuffed mail boxes and obnoxiously loud commercials have not already told you it is the EOFY time. The latest data from Trading Economics shows us that consumer sales in Australia have already increased by 2.9% YoY. While consumer confidence since March is down (marginally, by 0.10) overall spending looks to be up since the same time in 2018.
With so much noise out there how can you be sure you are making the most of this time of year?
The biggest mistake I see retailers make is having confusing promotions. Either they are too long winded or have too many conditions to get the deal that the customer switches off.
If your deals are too complicated the likelihood of confusion is guaranteed.
Thanks to the technological revolution according to Google and Microsoft you have roughly 8 seconds to engage a customer. So if your campaign is something like- Spend $100, get $10 off or Spend $200 get $20 off and Spend $300 get $30 off... omg are you still reading? I think I fell asleep writing that. This one is simple- change it to 10% store-wide. Having said that if you're only giving 10% off at the EOFY sale you have also probably missed the point of EOFY.
The other problem these days is that the defined sales seasons really no longer exists. Boxing Day and EOFY used to mean something. Thanks to fast fashion, dynamic technological advances (what number iPhone is the latest today?) and reduced consumer attention spans sales are now so regular that it is rare to see people willing to accept the RRP.
Make your sale mean something. 10% discounts are so common these days- what else can you do?
Reward your customer base
Instead of just offering the usual discounts why not offer customers who have signed up for loyalty programs store dollars instead? This will get them in store and shopping. If they like you enough to sign up in the first place, chances are it won't take much to get them in. Seriously an EDM doing this should have you clearing out last seasons goods in no time. Plus the cost of the EDM is peanuts compared to the profit you're going to make from all the additional foot traffic coming in.
Clear out the out of season stock that is clogging up valuable retail space.
You pay for that space, so holding onto an item rather than giving it a heavy discount is actually costing you money.
Offer previews or extra discounts
Again, tap into the loyal customer base. If you let them have a sneak peak at the upcoming products (i.e full price) and offer an exclusive extra discount you are tapping into what us Markets refer to as Appeal to emotions. By creating a connection with customers who you already know love your products, you are creating a deeper value to the products you're selling.
Overall keep your message simple, make your promotions stand out quickly and reach out to customers who already love what you do. This way you are ensured to have a meaningful slice of the EOFY profits.
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