Extreme value. It is the shock and awe of retail. Too often though, we don’t fully take advantage of everything that comes from it. If you use extreme value the right way, it can ignite your customer base and lead to referrals, increased sales, high gross profit, brand buzz, and increased store visits.
But doesn’t extreme value diminish a brand? Not if you use it strategically. On the flip side, does EDLP make a person take a selfie and post it to all their friends and family about the deal they got? Nope. Extreme value is best when used as a tactic within an overarching merchandising plan.
Here’s a thought: make it about breaking through to your customers, new and old. It’s about urgency. It’s about reminding people what you stand for. It’s about FOMO. It’s about bragging rights. Now more than ever, extreme value can re-ignite your brand.
Here are some things to consider:
Make sure you are inviting them to a great party
The deals will drive traffic. No doubt about it. Are you ready? I mean, really ready? Does your store look good? Do you have your upsells and complements merchandised? Is your sales team excited and ready? Do you have activations in place to bring them back? Don’t waste the deal and leave a bad impression. Extreme value drives them toward your brand. Make sure your bases are covered, or it will be like having a good drink at a bad party.
Don’t be too narrow in your message
It is critical that you are clear about the deals. Be specific, but also hint at your overall value prop. Yes, there are some extreme values going on, but there is so much more. You simply have to come in and see for yourself. Give the deal details, but within the context of everything else you have to offer.
It’s OK to sell out
Yes, it will happen. Your deals should be priced to drive traffic and move fast. Remember, extreme value is as much a marketing tactic as it is merchandising. Some customers will miss out. That’s OK. Some will be celebrating their deal and others will be ready for the next time. That’s a win-win.
The value must be clear (and real)
First and foremost, you should make money off your deals. This isn’t about just cutting margin on existing SKUs. This is real, rave-worthy extreme value sourced at a great cost that you can pass onto your customers. It’s not easy, but it’s authentic. This is about your buyers rolling up their sleeves and digging with your sourcing partners.
Tell the story
So your deals are head-turning. Great! What’s the “why” behind them, though? If there is a story to be told, use it to explain why the deals are so good. Don’t just say “50% off.” That is nothing to believe in. Everyone says that. Give the price point. Explain why or how. That’s where the magic happens.
Celebrate the happiness
Extreme value creates passion. Nothing beats the feeling of getting an incredible deal. Getting real value. Recognize it on social media and celebrate it. No one wants to see another pretty picture. Repost a customer raving about their deal. Share photos of your sales team with excited customers. Get your store teams involved. Have fun with it! Give your raving fans a virtual mega-phone. There is no dollar you can spend on advertising that is better than organic passion. Feed it and the traffic will accelerate.
Now more than ever, extreme value is a way to break through. Be buzz-worthy. You’ll not only see the results in traffic and sales, but you’ll feel it in brand engagement, too.