Behavior Driven Offers
This article is the fourth in a series from a ZOOO whitepaper.
The goal of this report is to help increase your store traffic. This may seem like a bit of a cheat code, but creating offers that can only be redeemed in-store is a great way to get feet through the door. While crafting the offer may be straightforward, making sure it is cost effective and drives profitable revenue is a bit more complicated.
A strategy you may have seen is printing a coupon directly on the receipt with an expiration date. This is a great way to encourage people to return to your store to be able to redeem their reward, driving a specific action from the customer.
Another popular strategy for getting customers through the door is to create a loss leader. This is a product or offer that you don’t make money on, but it serves to bring traffic in the store. While this can be successful, it relies heavily on your ability to make up the margin with other offerings in-store. Especially when people are feeling a little more price conscious, having a loss leader to get them out of the house can be a great strategy. However, you must carefully monitor the buying behavior to see if people are adding other items to the basket. Also, it doesn’t make sense to discount an already popular item to be a loss leader. If people are currently coming to the store to buy it, discounting would just cannibalize your sales.
Not all behavior driven offers require discounts – they can also be based on scarcity. Sneaker “drops” are an excellent example. While it may seem crazy that customers would line up outside a store for hours just for the chance to buy a product at full price, that’s exactly what scarcity can do. If you have a new product launching, try to create some buzz around it with a limited release. If you’re not in the retail game and are thinking this isn’t for me, try a limited menu at your restaurant only available to the first 20 customers, or a spa offering only available to the first five new bookings.
Don't want to wait for the next article to drop? Check out the whole whitepaper here.
