4 minute read
Promotional pricing decisions are traditionally not driven by the marketing team, but they, and in particular the team responsible for creating and sending messages to your customers, are sitting on a treasure trove of data that can support your product team in making the best promotional pricing decisions.
As a modern marketer, what actions can you take to help your product team nail their promotion?
Let’s take a look!
In order to understand the current lay of the land, it is important to have a baseline of your messaging program, which can be achieved by conducting an email content audit. Gather up all the messages you send, including newsletter, promotional, and transactional messages; segmented and targeted emails; triggered sequences; one-off emails; SMS and the like. Once you have a full inventory, review what offers and pricing promotions have recently been offered, are currently being offered, and how those have resonated with your audience.
You and the rest of your marketing team should also take into consideration the time of day your messages are being sent, which days of the week they are being sent, and which subject lines are performing best with your audience. You’ll be surprised at how impactful minor tweaks to any one of these areas can be.
In addition to conducting a thorough assessment of your own messaging, have a clear understanding of what your competitors are up to. A scan of the competitive landscape could be as straight-forward as gathering secret shopper intel using a dummy inbox, or more in-depth competitive reporting collected from data sources such as mailcharts.
What messages are your top competitors sending, and how frequently are they sending them? Of those messages, how frequently are they offering discounts, and how much of a discount are they offering? Maybe they aren’t offering any discounts at all! How does that compare to what you have been up to? Looking at the past 90 days of messaging activity is a good reference point, but be open to looking at older relevant data points if applicable.
Once you have a better understanding of your competition’s messaging strategy as it pertains to offers and pricing promotions and compared it to your own messaging strategy and cadence, now is the time to have a brainstorming session with your whole marketing team about the creative side. Take a look at the creative elements of your messages and those of your competitors, and acknowledge what stands out to your team about each of the brands.
Do your top competitors consistently use large hero images? Is your call to action (CTA) above or below the fold? Does the message include offers that add value to the quality of life of the recipient? Are they using provocative subject lines? Are you using ones that have been falling flat? Keep in mind an offer doesn’t necessarily have to hold a monetary value to your customer. Phone apps, web services and useful relevant content can all be viewed as offers as they are features that positively impact the lives of your customers.
With a deeper understanding of what has been working for you (and what hasn’t), as well as a competitive analysis of what you like about what your customers are doing, it’s time to start testing. Testing is one of the best possible ways to figure out what works best for your specific organization. As an e-commerce company there are many costs to consider when deciding on a respectable discount to offer, and some rarely offer any promotions.
What pricing discounts and offers are you currently offering (or have you offered recently)? How much of a discount can you offer? Perhaps you have become accustomed to offering 30% off on a regular basis, but have you tried offering 25% or 35% off? Take a look at the average cart size to gain a clear understanding of how these small changes will impact the success of your campaign, and your bottom line.
Now that you are armed with the knowledge of what you want to achieve with your messaging program and how you would like sales and promotions to look and feel, it’s time to shift your focus to your strategy and think proactively about areas you want to focus on.
Talk to your product team with your informed suggestions. Make recommendations based on reputable insights. Wouldn’t it be great if you could turn on promotions when a client is at risk of churning, or run a sale on merchandise that is targeted directly at a specific segment of your audience?
When presenting any of your ideas to your product team, be sure to include factors for consideration including where it can help and where it could potentially hurt. Running a promo to new subscribers is a fantastic idea, but how will that impact your brand loyalists? Ideally, how can you effectively engage your audience with offers and pricing promotions, without negatively impacting your bottom line?
As a modern marketer, taking a more proactive approach in your offers and pricing messaging strategy, and showcasing opportunities to your product team, will further establish your value to them and the organization as a whole.
Including more people in the promotional pricing process will further expose the opportunity to access your marketing team’s thorough understanding of the buyer persona profiles and the features and price points that are most attractive to your customers. In turn you will be rewarded with a more actively engaged audience.
If you would like support with your promotional pricing strategy, talk to Trendline today.
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