Holly Beingessner’s Post

The graph here is as clear an indication as you can get that most brands operate in one mode for holiday & sale periods (volume as the far and away number one priority) while approaching a loyalty strategy more defensively (focus on contribution margin). I think this is wrong in both cases. That mindset for holiday and sale periods leads to (a) discounting too often and (b) discounting more than is necessary/optimal. Blanket approach that is margin destructive and gets worse with time as customers learn to not purchase full price. For business-as-usual, the idea that fixed rewards (e.g., redeem some amount of points for $20 off) protect margin more than uncapped %-based rewards is wrong in nearly every single case we’ve looked at. It often comes from a CFO defensively policing marketing as a compromise to launch a loyalty program. We recently worked with a brand to convert their loyalty strategy from fixed $ to %-off rewards. The best reward they offered was previously $50 off, and they changed it to 20% off. Same amount of prior spending (~8x their $60 AOV) required to access that discount. Volumes didn’t really change, but this is the picture over the last 13 weeks: - First 10 weeks with $50 off reward in place: $105 gross AOV, $50 discount, $55 net AOV - Last 3 weeks since change: $115 gross AOV, ~$23 discount, $92 net AOV The effect isn’t always that big ^, but the direction usually is. Personalized, percent-driven discounts (20% or less) tend to be both AOV and margin accretive.

If you're not subscribed to our newsletter you're missing some critical industry data not being talked about anywhere else with highly actionable insights around.. 💡the state of loyalty programs (spoiler alert: they're boring & need a way more captivating, personalized strategy) ❌ what you're doing wrong (like not taking a proactive in channel approach to engaging and hyping up your loyalty members) ✅ how to leverage the *right* discount type for your loyalty program So what is the right discount for your brand to leverage when rewarding your most valuable customers? Dive into our latest newsletter below, and subscribe to stay on the cutting edge of loyalty programs and retention strategies! 👇 https://hubs.ly/Q02Sq5yd0

Are you sure that your loyalty program is using the right discount type? 👀 Most DTC marketers know about the Rule of 100, which states that when a product is priced lower than $100, it's more effective to use percentage-based discounts; and when a product is priced higher than $100, it's more effective to use dollar-based discounts. Since the vast majority of brands have an AOV lower than $100, percentage-based discounts seem to be the right move—yet our analysis found that 75% of loyalty programs are leveraging fixed-dollar discounts. This is especially puzzling when you consider that nearly 90% of brands used percentage-based discounts for BFCM 2023. If brands are using them for the most important sales season of the year, why aren’t they more willing to use them in their loyalty program? Our CEO Mike Berardo breaks down this contradiction in the latest Repeat Saturday Email. Subscribe to learn more about how your loyalty program can use discounts to drive better results: https://hubs.ly/Q02Sq5yd0

😡 CPG brands, this really boils my blood... I get that CPG brands want to push subscriptions over one-time purchases but... PLEASE still go for an easy-to-understand PDP/LP. You shouldn't have to manipulate the (potential) buyer into a complicated matrix of upsells + 6 month subscription to increase your AOV. The more confusing your PDP is, the more dropoff you'll see....it's just bad CX. (not to mention it feels icky) Truth is, some just want to try out the product once to start, and others will subscribe right away. Make both options easily discernable. But if you force subscriptions and make one-time purchases impossible to decipher, you will lose a ton of potential customers. Remember once they purchase, they're now in your ecosystem and with a robust retention system, you will most likely make more from them in the long run, rather than trying to extra every penny now by confusing them into a long term subscription they will quickly churn from. Yes, strive for high AOVs, but please remember play the long game. Rant over! #emailmarketing #customerretention #ecommerce

Too many DTC brands don’t realize the destructive behavior they’re actively taking part in. The data doesn’t lie: 59.19% of shoppers use discounts offered to them, and never shop again. Yet so many brands keep offering increasingly steeper discounts to keep the sales coming in, while kicking the concern about LTV down the road. Truth is, if you know this stat, and are still offering a coupon code five seconds into a visitor’s first site visit — I can’t do much to help you. Try a better way. Try CashBack.

Figuring out which BFCM promo type is right for your customers AND for the business isn't easy. It's a balancing act between giving shoppers (both new and returning) what they want and prioritizing profitability for the business. We surveyed BFCM shoppers to learn what types of offers are most appealing to them and what percentage of discount they'd need to consider a purchase. Here's what the data shows: - Discounts are holiday shoppers’ favorite promotional offers, followed closely by BOGO deals - 30% of surveyed respondents said they'd need a discount in the 20%-25% range to consider a purchase - 23% said they’d need between 25-30% off. You may be thinking, "30% is going to eat away at margins. We can't do that." The good news is you don’t have to. According to Klaviyo’s 2023 data, higher discounts don’t always equal higher conversions, which is welcomed news in a retail environment that’s squeezing margins. Obviously consumers love discounts. But brands are rightfully wary of using too many or discounting too much, fearing it’ll affect profitability. So here are a few suggestions to make sure you’re giving BFCM shoppers what they’re looking for but also making profitability a top priority: - First, poll customers NOW on what motivates them to purchase, through email surveys or post-purchase questionnaires to really understand their motivations. Then when BFCM rolls around you’ll have a clear picture of how to engage them more effectively. Once you know what motivates them, you can try combining both discount and BOGO offers for maximum impact. - To avoid a blanket discount across the board, you can reserve BOGO and early-access deals for your VIP customers and give a more modest discount to all other buyers. - Lastly, if heavy blanket discounts aren’t right for you, try applying discounts only to specific products or collections or offer a limited quantity at the discounted rate to create urgency. The takeaway? You can get creative with your BFCM offers to make sure you’re capitalizing on the hype of the big event, making sure your customers feel like they’re getting good value, all while prioritizing profitability. Get our full BFCM deep dive where we detail industry trends and actionable strategies key to Q4 success. (link the in comments)

🚀 Boost Your Brand This BFCM! 🚀 With BFCM just around the corner, it's time to prepare and make the most of every sales opportunity. Here's a quick checklist for consumer brands to ensure a successful season: ✔ Create Limited-Time Offers – Craft enticing deals that spark urgency! ✔ Simplify Checkout – Streamline the purchasing process for an effortless customer journey. ✔ Utilize Social Proof – Showcase reviews, testimonials, and user-generated content to foster trust and increase conversions. ✔ Infuse Urgency Without Being Pushy – Encourage action with limited stock alerts or countdowns while maintaining a positive experience Ready to make this BFCM your best one yet? Contact us now to get started! 👉 https://bit.ly/3IyBq4W #BFCM2024 #BlackFriday #CyberMonday #BlackFridayDeals #CyberMondayDeals #HolidaySales #EcommerceTips #SalesSeason #BFCMDeals #HolidayShopping #SalesStrategy #ShopifyExperts #Ecommerce #Branding #SalesStrategy #ConsumerBrands #Shopify #Metizsoft

The digital age has disrupted consumer behavior. While traditional retail remains strong for #CPG brands, a growing segment seeks products online. #DTC sales offer an enticing opportunity, but is it the right move for your brand? Consider these factors before taking the plunge: 💰 Can you offer unique value? 📶 Are you optimized for online? 🎨 Does your brand stand out against competition? 🚚 Do you have reliable providers or strategically located fulfillment centers? Don't get caught in the hype – a data-driven approach ensures DTC strengthens, not undermines, your brand. Head over to our website to learn more about building a well-defined DTC strategy. https://bit.ly/4d0jRsL #digitalmarketing #brandonagency

5 Strategies to Increase Your Grocery Store’s Average Basket Size .. 1. Strategic Product Placement & Cross-Selling 2. Savvy Promotional Strategies 3. Smarter Store Layouts & Checkout Placements 4. Loyalty Programs & Personalized Offers 5. Preventing False Out-of-Stocks

🛍️ Dive into the heart of retail marketing with our latest blog! Discover why the Point of Purchase (POP) is a critical battleground for brands, and how impactful in-store displays can make or break consumer decisions. Dive in: https://bit.ly/3U3T2ei