Building a list on more than deals and discounts

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sale symbolThere is some argument out there on whether sending deals, discounts, free shipping, coupons etc. makes long-term sense for any email marketing program.

One side says you're simply training recipients to buy at discount rather than full price. The other side says, yes, but if it brings more sales and profits, who cares? At this point, arguments about price theory and branding break out.

But there's a bigger problem here.

Two of the key questions for your 2009 email efforts are:
  • What do your emails offer that people can't get from any other email list?
  • If a competitor started offering the same content or similar offers, why would subscribers stay with your list?
Deals and discounts don't address either of those questions. They are not a competitive advantage in an increasingly competitive inbox.

The widespread use of discount offers by everyone else diminishes the value of your emails to the recipient. But it also makes it difficult to abandon such promotions, since you would then lose sales to all the others that stay with discounts and special offers.

Equally, many email programs attract subscribers specifically because they promise access to special offers and discounts.

So you're in a dilemma. Unless you happen to have a unique product or service or a particularly strong brand, you need discounts to compete. Even though they don't make you competitive (very Zen!).

If you don't want to send ever deeper discounts (in a never-ending arms race with your competitors), what can you do?

The trick is not to get lulled into the complacency that comes from sending simple promotions and getting enough sales to wave wonderful ROI figures in the face of your bank manager or boss.

That underexploits the potential of your list and is no safeguard against competition.

Ask yourself two questions:
  • what other ways can I add value to an email subscription?
  • how else can I persuade people to join the email list and stick with it?
For example, subscribers to a retail email list might get...
  • Earlier or priority access to new products
  • Subscriber-only products (or special, limited-edition subscriber-only versions)
  • Sneak peeks at future developments
  • The chance to participate in future product development through subscriber-only feedback channels
  • Advance notice of offline sales, with the option to reserve products in advance
  • Extended warranties
  • Their own dedicated service hotline
  • Supporting content (how-tos etc.)
I'm sure you can add many more to that list.

Another alternative is to promote sales by stopping selling. I explore that concept here.

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[This post brought to you by Campaigner Email Marketing]
Permalink | February 10, 2009 | 4 comment(s)
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4 Comments:

It comes down to some type of relationship. I asked myself your question in a little different wording, "If my competitor did exactly what I do now (email and direct mail), why would my customers still choose me? I hope so, but I'm not sure. I would hate to get in the losing battle of a price war. So I'm thinking that I need to make sure I am always investing in Innovation and Relationships. And email is a tool for that. What do I offer my email list to keep them? Savings as usual, but how about education, inspiration and ideas my competitor can't or won't give.
By Anonymous David Moore, on 10 February, 2009  
 

Sounds like a healthy approach David. Thanks for sharing.

And when you mention inspiration, this touches on the important point that differentiation doesn't come through content alone, but also through other factos, like personality and professionalism.
By Anonymous Mark Brownlow, on 10 February, 2009  
 

...and spelling (factors not factos). Message to self: slow down.
By Anonymous Mark Brownlow, on 10 February, 2009  
 

I completely agree with David, and I think this fact often gets left out of the conversation. A key missing ingredient in most of these types of conversations is that we’re not emailing the world at large, we’re sending our e-mails to people who know us.

So it’s fine if “strangers” show up, but the biggest advantage each of us has in getting notice is that we each have a circle of relationships. These will always be the low-hanging fruit for readership and clients.
By Blogger Michael Katz | Blue Penguin, on 11 February, 2009  
 

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