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Is your business ready to crush it this peak season?
Download our FREE Peak Season Tactical Playbook 2024 and learn how to maximize sales with targeted marketing strategies and outshine your competitors with optimized campaigns.
Price is what you pay, value is what you get
Once again, in just a few days, we will all start gearing up to score the best peak season deals as consumers. And there are so many right now that we even decided to create a tactical promotion calendar you can use. But let's take a step back because this week, we finally decided to break down when it might make sense for you to participate as a brand and when not.
Here's when you should be having this conversation:
-
When pools of your audience are not price-insensitive:
(Which happens quite often 😭)
If part of your customer base is responsive to promotions, it might make sense to leverage these deals to shorten the sales cycles and/or feed your top-line acquisition stream. If you worry about diminishing profit margins, remember that at least a percentage of these new customers can be converted to long-term customers, even if they were just fishing 🎣 for discounts when they first found you. -
You need to clear excess stock:
( this one is an easy grab 📦)
Then it will be a good time to eliminate slow-moving, outdated, or near-expiration-date products to accommodate new collections and holiday products. An activation idea to execute this is to set Inventory-specific flash sales with a countdown time to build urgency. Works like a charm! 🎯
-
You know how to play the brand awareness game:
(Calling all brand and performance besties 🎯👫)
If in ‘short-term’ marketing you're looking for growth spurts, then in ‘long-term’ marketing you will prioritize strategic, gradual brand growth to build on sales. 📈 brand awareness = 📈 conversion rate. But one thing is talking the talk, the other is walking the walk. Playing for the long run requires a lot of strategic alignment, planning, and patience. Just like losing weight.
If you fit into this category, you're an always-on brand that can cut through the clutter, leveraging this season to reach more non-category buyers than usual, with relative efficiency between revenue and cost 🎖️. Even taking in supply-driven inflation, excess noise, and US elections.
Brand Always Matters
If this topic interests you, you should read this recent report from Tracksuit and TikTok: “The Awareness Advantage,”. It provides good data to support the proposition that brand matters if you want to drive business metrics.
Read "The Awareness Advantage"
Image: Credit to Microsoft Designer for this great representation of how some of us feel during Black Friday.
Running a B2B business model? There's still a seat at the table for you.
Just look at what HubSpot, Slack, and many others are doing in the SaaS space! They are not pushing back to season-driven deals. Now, if there's a point, it is that bundling offers will usually be preferred to direct discounting, which is traditionally associated with attracting the wrong type of people.
The goal here is to increase the customer's LTV while running a promotion rather than decrease it. In other words, playing around with the value: price ratio. For example, if selling licenses, looking to increase the value vs. the price of each license, putting together offers that can increase commitment and total order value.
The bottom line
There is no one-size-fits-all solution. 🙃
Just ensure you cross the right boxes when preparing the strategy, and that your servers can take the increased traffic. Yes, there will be always many other ways to run promotions that don't come with a craze of bargain hunters, but we always fan the ‘learn by trying’.
So, when shouldn't you take part in this conversation?
If you are a luxury or premium brand, and your value proposition is extremely focused on quality, exclusivity, and premium craftsmanship, then it shouldn't make much sense to jump on the Black Fridish bandwagon. You can certainly get a discount when buying a new Rolex, but putting black friday labels on it will be out of the picture.
Some alternative approaches would be:
- Setting up exclusive and invite-only promotions for high-value customers to maintain your value proposition while also rewarding your customers.
- Running exclusive holiday product variants or bundles without discounting your core offerings. Loyalty programs should also be strengthened through special and exclusive rewards.
🙉 Still not sure how to handle this upcoming peak season? Take a look at our detailed peak season guide for an answer to all of your questions: Codedesign Peak Season 2024
Time to get to level 5 with AI 
A recent interview with Sam Altman has clarified the 5 stages at which OpenAI sees the development of artificial intelligence. In summary, we are still at the beginning of what could be possible in the future with AI. Artificial intelligence is currently a tool for individuals and businesses to use and help them in their day-to-day tasks such as we showed in the last edition of Insights!
To keep it simple, we have summarized Sam Altman's interview in the following diagram with an overview of what AI will be capable of in each stage (supposedly).
The main takeaway here is that the development of artificial intelligence will not only be a technological change but over time will also leave its impact on us as a society once it starts being more and more autonomous. Let’s look at level 3, the next stage of where we currently are. One example of this would be Tesla’s self-driving cars and autopilot. While we are not there yet, the advancements are made rapidly and the technology will be here sooner than expected.
All this is to say that the rise of AI has already had a huge impact on most of our lives, whether we use it in our personal life to choose our next read or at work to help us write the perfect email to our boss, there are still more developments to come and it is better to embrace it rather than avoid it!
Source: Medium
Here's the full interview: YouTube
Is your business ready to crush it this peak season?
Download our FREE Peak Season Tactical Playbook 2024 and learn how to maximize sales with targeted marketing strategies and outshine your competitors with optimized campaigns.
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Thank you for joining us in this edition of Insights! We hope you found our updates and expert tips both informative and inspiring.
We’re excited to continue sharing valuable insights and success stories with you in future editions. If you have any feedback or topics you’d like us to cover, please don’t hesitate to reach out—we’d love to hear from you!
Until next time, stay ahead of the curve and keep innovating!
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