Discount Strategy in DTC: Getting Off the Discounting Hamster Wheel
Summary
Are discounts hurting your brand? Learn how to break the cycle and drive profitable growth with smarter strategies.
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Transcript
We see this a lot in DTC is how much should I be discounting? How do I get off the discounting hamster wheel? And Abercrombie is a brand that I think has done that pretty successfully. They're just, they're not doing, you know, these giant store-wide sales all the time on the site or in the store, but they're, they're making more money. And other brands that we see today still are trying to hit these aggressive growth targets by slashing prices or doing these big sales. And again, I don't know if that plays out well for them in the long run when investors are focused on profitability. And if you're cutting, know, if you're just doing coupons and sales all the time to hit a growth number, not unprofitably, I think you're going to run into some trouble.
One thing that we preach in Nerd Marketing all the time, or PostPilot is like, yeah, discounts aren't, they're not evil, but you're training your customer to buy on discount. You really should use them at the point of greatest impact, and there are ways to figure that out from your customer data.