Can I get full price?
Every morning when I pick up my iPhone, I find myself scrolling
through a list of 10-15 email offers. Groupon, Living Social,
Gilt…combine those with the dozens of retail email coupons and
promotions I'm already receiving, and it's out of control. It seems
like there's a new Groupon clone launched daily. Just last week,
Google (after a failed attempt to purchase Groupon) launched Google
Offers. And this week, Facebook announced the launch of Facebook
Deals.
Consumers now expect discounts. Which
begs the question, is anyone willing to pay full price?
To me, it's ultimately a question of what the marketer has done
to grow its brand. In this digital world, the need to create a
meaningful brand is often lost in the marketer's desire to directly
sell product through individual ads.
Social media has made the consumer smarter than ever. It has
given them access to reviews and price comparisons. A poor or
overpriced product no longer stands a chance. But the consumer is
also loyal to the brands they are passionate for. In fact,
consumers will leverage social media to promote the brands they
love. The consumer's loyalty to his/her favorite brands far exceeds
his/her loyalty to finding the lowest price.
Too many companies are forgetting about brand building, shifting
all their dollars to ROI-driven, short-term tactics that do nothing
to build long-term affinity. I don't need or expect a discount to
buy an Apple or to pick up my morning coffee at Starbucks. These
are brands that I am loyal to. They have developed identities that
I connect with. Yes, they have strong products. But there are a lot
of great computer and coffee companies for me to choose from.
Coupon and group buying sites create an opportunity for
consumers to get a great deal. And they give companies an
opportunity to get quick sales. But if companies care about their
long-term growth, they need to focus on building their brand
first.