The short answer is yes. Research shows that on average, flash sales increase transaction rates by 35 percent. If you want to increase profits and dispose of excess inventory, flash sales are the key. Buyers get excited about the prospect of getting a great deal and tend to buy more. However, you need to know how to manage a successful flash sale. The steps below will help you become a flash sale expert.
That describes a flash sale in a nutshell. A five percent discount isn’t going to attract attention, so make sure you can give a big discount without losing money. Scarcity motivates buyers, so plan to promote the fact that the sale items are in limited supply.
Fear of missing out also motivates buyers, so giving the discount for a short amount of time is critical. Three-hour sales typically produce a 14 percent transaction rate, which is higher than flash sales of other durations.
If you hold a flash sale, you’ll want to measure its success when it’s over. In order to do that, you need to set a goal up front. Based on the objective you set, flash sales can provide many benefits. For example, they can reduce or eliminate excess inventory, attract new customers, stabilize your inventory by encouraging buyers to buy a range of different products, or increase brand loyalty.
There may be times when you’ll put everything on sale, but most of the time it’s better to target a selection of products. Consider what people are buying and what holiday you’re promoting. For example, if you’re promoting Mother’s Day, you should include products that a mother would like in the sale.
If you want to encourage buyers to try more of your product line, pick your products carefully. Rather than putting all overstocked products in the sale, you would need to include products that are related to your best sellers. That will drive impulse buying by tempting buyers to purchase both.
For example, if you’re focusing on existing customers, avoid sending an announcement to customers who recently bought the sale item. No one likes to see a lower price that wasn’t available when they made their purchase.
If you’re targeting new customers, send an announcement to anyone in your database who hasn’t made a purchase. But, you’ll also want to consider using other advertising channels such as paid online ads and shopping PLA’s.
There’s a fine line between having too much of a sale item and running out before the buying frenzy has ended. Make sure your supply chain can handle the demand to avoid the problem of disappointing your customers with long delivery times. Also, double check with IT to make sure your server can handle what you hope to be a big increase in activity.
People like to plan their purchases, so give them time to read reviews and make initial purchase decisions. This also gives you the chance to create creative animated countdown emails and posts on social media. Building anticipation is an excellent strategy.
The promotion itself deserves close attention. Consider using techniques like giving larger discounts for early shoppers and using larger font sizes for terms like “two-hours only” and “limited availability.” You can also do things like crossing out 20% and making the sale 25% off. Use creativity to attract and motivate your buyers.
The last thing you need to do is figure out how successful the sale was. Look at how well you met your goal, what you think worked well and what you need to improve on for the next time. Flash sales should leave customers with a positive experience. Look at how well you provided customer service, including fast shipping.
If you follow these steps to manage your flash sale, you’ll be certain to see a big boost in your holiday sales.
April 15, 2019
Shopping, The Winning Curve