The concept of providing discounts or promo codes for alcohol brands frequently ignites a debate. While some worry that these tactics may diminish the perceived value of the product, others view them as indispensable tools for fostering customer loyalty and driving sales in the competitive e-commerce landscape. Let's delve deeper into this dichotomy and explore how strategic discounting can be a powerful ally in enhancing brand reputation and customer relationships.
Perception vs. Reality
At first glance, offering discounts might seem risky, as customers could perceive products as lower quality. However, the impact extends beyond the immediate transaction. According to Valassis, “78% of consumers are influenced to buy a brand they wouldn’t typically buy due to a coupon”, indicating the significant influence discounts can have. This highlights the effectiveness of discounts in attracting new customers and fostering long-term growth.
Expanding Customer Horizons
In today's saturated market, where brand loyalty often reigns supreme, enticing new customers can be a challenging feat. However, offering first-time purchase incentives can be a game-changer. By extending a welcoming hand to consumers who may already have allegiance to other brands, alcohol companies have the opportunity to showcase their unique offerings and win over new converts. A compelling first-time purchase offer, such as a discount or exclusive bundle deal, can prompt hesitant buyers to take the plunge and explore a new brand, ultimately broadening their horizons and diversifying their preferences. For example, one of our successful brand partners offers a 10% discount to first-time customers. Their lifetime submit rate is an impressive 5.51%, which Klaviyo deems excellent, indicating a strong initial interest from customers. Additionally, their lifetime conversion rate stands at 7.1%, showcasing their ability to turn those initial submissions into actual purchases.
Unlocking Value with Bundles and Savings
Unlocking Value with Bundles and Savings is a cornerstone of WhistlePig Whiskey's success strategy. They continually innovate by introducing new and distinctive bundle options paired with merchandise, enticing customers to return for fresh experiences. By bundling their premium whiskey with complementary accessories or other spirits, WhistlePig provides added value and encourages customers to explore their offerings further. Moreover, their offer of complimentary shipping for orders exceeding $50 serves as a powerful incentive for customers to maximize their purchase value. This synergy of innovative bundles and shipping incentives not only enhances the customer experience but also effectively encourages larger transactions, solidifying WhistlePig's reputation as a leader in the spirits industry.
Empowering Customer Advocacy
Harnessing the power of customer reviews is another valuable tactic for fostering brand loyalty and trust, especially for brands like Whiskey in the Wild. By implementing a review section on their website, they provide a platform for customers to share their experiences and insights. For example, one customer's review highlighted how Whiskey in the Wild transformed their perception of whiskey, making it enjoyable even for someone who previously disliked it. The review mentioned how receiving Whiskey in the Wild as a gift enhanced their golf weekend, and the attached flask made it a memorable accessory. This anecdote showcases that Whiskey in the Wild is not just your typical whiskey purchase; it's a versatile and enjoyable option for everyone. Encouraging customers to leave reviews not only strengthens brand credibility but also attracts new customers who resonate with positive testimonials. By offering incentives such as discounts or promotions for leaving reviews, Whiskey in the Wild can further encourage engagement and loyalty while solidifying their reputation in the competitive market.
Strategic Implementation
The key lies in the strategic implementation of discounts and promo codes. Rather than indiscriminately slashing prices, brands should carefully tailor their offers to align with their overall marketing objectives. For instance, offering special occasion promotions, such as holiday bundles, limited-time anniversary sales, or discount offers on a customer's birthday, drives sales and creates memorable experiences for customers. Additionally, brands can capitalize on unique events like Frey Ranch's Whiskey Harvest Season. Frey Ranch celebrates this annual event by offering exclusive deals and promotions, highlighting their commitment to quality grains and supporting their farming community. By tying promotions to such meaningful occasions, brands can enhance customer engagement and foster loyalty while achieving their business goals.
Measuring Success
To assess the efficacy of discount strategies, e-commerce brands should consistently monitor vital metrics like customer retention rates, average order value, and overall sales growth. Utilizing tools such as Shopify Analytics, Google Analytics, and Klaviyo for email marketing automation, brands can gather and analyze pertinent data over time. These platforms offer detailed insights into customer behavior, allowing brands to refine their discounting tactics while preserving brand identity and customer loyalty.
Is 2024 the year your brand starts to rethink the role of “discounts”?
Strategic implementation tailored to brand objectives unlocks untapped potential, driving customer loyalty and maximizing ROI. By offering incentives that resonate with consumers, brands can redefine discounting as a tool for value creation, leaving a lasting impression on both customers and competitors.
