When it comes to seasonal bargains that other companies participate in, you don’t have to undercut your products with discounts to make sales. Winning the hearts and minds of consumers has never been easier, even in the current state of the pandemic and economic flux. While money is still being spent, consumers have become more selective about where they invest their money. The trick is to motivate them to choose your brand.
How to pull a 0% off strategy? With these strategies we’ll share, you’ll find your customers more than willing to open their wallets to pay full price for your offerings, even during the holiday season!
- The Challenge of Competing Against Discounts
- Examples: Premier Businesses Currently Succeeding Without Discounts
- Adapting the 6 Premium Brand “No-Sale” Strategies for Owning Holiday Seasons
- Additional Strategies for Smaller Brands
- Your Small Business Can Become a Holiday Premier Brand, Too!
The Challenge of Competing Against Discounts
The holiday season presents a prime opportunity for businesses to capture the attention and purchasing power of customers, but for smaller brands, competing against the relentless discounts offered by larger counterparts can feel like entering an arena of gladiatorial proportions. Yet, not all successful businesses resort to slashing prices. Take Nintendo, for example, a brand that rarely (if ever) lowers the prices of its games and consoles, or Peloton, a fitness company that stands strong amidst a sea of discounted alternatives.
So what can smaller businesses who can’t afford to discount yet feel they must do so in order to survive? Is there a viable alternative to the discount-driven approach?
Spoiler Alert! The answer lies in embracing a “no sale” strategy. By highlighting their unique value propositions, crafting compelling brand stories, building personal relationships, collaborating with like-minded brands or influencers, offering limited editions or exclusive promotions, prioritizing exceptional customer experiences, and leveraging digital marketing channels, smaller brands can not only survive but also thrive during the holiday season without relying on discounts.
This article dives deep into the strategies that empower smaller brands to unlock success during the festive season, proving that discounts are not the sole path to capturing the hearts and minds of customers.
Examples: Premier Businesses Currently Succeeding Without Discounts
Apple
The Mac maker is known for its premium positioning and has a history of avoiding discounts during the holiday season (and always, if we’re being honest). Instead, they focus on introducing new products or updated versions of their existing products, creating anticipation and generating demand. They harness their brand loyalty and reputation for innovation to drive sales.
Tiffany & Co.
The renowned luxury jewelry brand that I came to know about because of Audrey Hepburn maintains its premium image by offering timeless and iconic pieces. During the holiday season, they often release limited edition collections or highlight their signature items like the Tiffany Blue Box. Leaning into the brand’s heritage, craftsmanship, and exceptional designs, Tiffany & Co. entices customers despite a lack of slashed prices.
Rolls-Royce
This prestigious automobile manufacturer stands out in the luxury market through they emphasize the exceptional craftsmanship, bespoke customization options, and the exclusive ownership experience that comes with buying a Rolls-Royce. When it comes to holiday adverts, they tend to highlight their innovative features and cutting-edge technology to entice potential buyers who are seeking the latest innovations in luxury automobiles. For discerning customers who value opulence and individuality, Rolls-Royce is supa choice.
Hermes
The French luxury brand Hermes is known for its high-quality products, particularly its iconic Birkin and Kelly handbags. During the holiday season, Hermes focuses on maintaining scarcity and exclusivity by controlling the supply of their products. Rather than relying on discounts to draw in buyers, they trust in their brand reputation, craftsmanship, and the allure of owning a highly coveted Hermes item.
Adapting the 6 Premium Brand “No-Sale” Strategies for Owning Holiday Seasons
Studying the “0% off” tactics that premium brands utilize so that they don’t have to rely on traditional discounts and sales promotions is a strategic move that could behoove businesses that are ready to toss the discount sign stashes in the dumpster. The adoption of a “no sale” strategy sets some premier establishments apart, and to their advantage. So, how do they make it work so well? There are 6 main actions and points to consider:
Exclusive Products and Limited Editions
Premium brands introduce exclusive products and limited editions specifically for the holiday season. These unique items create a sense of scarcity and exclusivity, making customers eager to own them without the need for discounts. Rarity makes the fruit that much more tantalizing!
Small brand adaptation:
Limited Editions or Exclusive Offers: Similar to larger brands, smaller brands can create limited edition products or offer exclusive promotions during the holiday season. This can create a sense of urgency and exclusivity, encouraging customers to make purchases without the need for discounts. Limited edition runs or special bundles can also help drive customer engagement and sales.
Superior Quality & Craftsmanship
Emphasizing the superior quality and craftsmanship of their products is another premier brand action. They take pride in using premium materials, paying attention to every detail, and showcasing exceptional design. By calling attention to the value and longevity of their offerings, they attract customers who appreciate quality and are willing to invest in long-lasting items. (And often, spending more in one go means replacing less overtime, a long-term strategy for saving money!)
Small brand adaptation:
Smaller brands can be superior, too. Focusing on developing a strong and unique value proposition sets them apart from competitors. Whether it’s innovative product features, sustainable materials, local craftsmanship, personalized customer service, or even a wacky personality, highlighting these unique aspects can help create a compelling reason for customers to choose their brand, even sans discounts.
Exceptional Customer Experience
When premium brands prioritize providing an exceptional customer experience, they’re almost unstoppable. They go above and beyond to offer personalized service, attention to detail, and a luxurious shopping environment. From the moment customers step into their stores or engage with their brand online, they aim to create a high-end experience that makes customers feel valued and special, and look forward to further interactions with the company.
Small brand adaptation:
While big companies have the ability to keep raking in revenue even if their customer service is mediocre at best, that’s not so for small ones. Providing an exceptional customer experience the way that premier brands do is crucial for smaller establishments. Paying attention to details, offering personalized recommendations, and ensuring prompt and efficient customer service can help create a memorable experience. Satisfied customers are more likely to become repeat customers and brand advocates, proud to be a “founding customer” as the brand grows.
Brand Storytelling & Heritage
Premium brands invest in communicating their rich histories and unique brand stories, which they capitalize on to connect with customers emotionally. When they put effort into thoughtfully sharing their heritage, craftsmanship, and the stories behind their products, they create authenticity and exclusivity. This results in peoples’ attention being captivated, cultivating the loyalty of customers who appreciate, or even relate to, the narrative behind the brand.
Small brand adaptation:
Every brand, regardless of size, has a story to tell. By crafting a compelling brand narrative that resonates, smaller brands can establish a special emotional connection with folks who have relatable life experiences or ideals. Sharing the brand’s journey, mission, and values creates authenticity, which makes customers feel like they’re adding even a little bit to the continuing legend.
Collaborations & Partnerships
Speaking of storytelling, premium brands often collaborate with renowned designers, artists, celebrities, and other yarn spinners during the holiday season. These collaborations generate excitement and interest in their products across otherwise untapped sources. By associating their brand with respected figures, they enhance their brand’s appeal and desirability across the board.
Small brand adaptation:
Successful creative and collaborative outreach isn’t just for the big names. Partnering with complementary brands or influencers can help smaller brands expand their reach and attract new customers. Collaborations can introduce the brand to a wider audience and add credibility. It’s vital, however, to select partners who are aligned in values and target audience to ensure cohesive, impactful, and long-lived partnerships.
VIP Programs & Rewards
Who doesn’t want to earn back some bucks when they spend some? It’s basically a discount! Oh, and access behind the ropes? Awesome! Often, premium brands offer exclusive VIP programs and loyalty rewards. These programs provide access to special events, early product launches, personalized offers, and other exclusive privileges. As they cater to their devoted customer base, making them feel thrifty and appreciated, they create a sense of exclusivity and cultivate long-term relationships.
Small brand adaptation:
There are a few ways that small businesses can keep buyers coming back with their budgets. For example:
- Loyalty Points: Implement a system where points are earned for every purchase a customer makes to redeem for discounts, free products, or exclusive perks… but only if they keep coming back!
- Birthday Rewards: Recognizing and celebrating customers’ birthdays by offering them special discounts or freebies is a simple way to show appreciation and build a personal connection. (And make someone’s special day even more memorable!)
- Referral Program: Encourage your regular customers to refer their friends and family in exchange for incentives like discounts, freebies, or even exclusive access to certain products or services. When they are successful, all three parties win!
Additional Strategies for Smaller Brands
Build Personal Relationships
One thing that smaller brands have on their side is they have the advantage of being able to establish more personal connections with their customers. Invested partners and employees providing exceptional customer service and engaging in direct communication through social media, email newsletters, or personalized thank-you notes, smaller brands create a sense of intimacy and loyalty. (Although we do have to say that Chewy is one big name that nails this one as well as one can!)
Leverage Digital Marketing Channels
Don’t neglect your online presence! Smaller companies can leverage digital marketing channels, such as social media, content marketing, and influencer collaborations, to increase brand visibility. This also is an opportunity to develop relationships with customers beyond any facetime that you may have with them, reminding them of your brand as they scroll. Maintaining an active online presence helps build familiarity and brand recognition, plus attracting customers who resonate with the business’ values and offerings.
By implementing these eight strategies, smaller brands can create their own unique path to success during holiday seasons. While they may not have the same resources as larger brands, focusing on their distinct value proposition, storytelling, customer relationships, and memorable experiences can help them stand out and thrive without relying on traditional discount routes like these independent establishments below.
Smaller Brands that Own Discount-less Holiday Sales
While specific examples of small businesses that have succeeded in the holiday season without discounting their offerings may vary depending on various factors, here are a few examples to illustrate the possibilities:
Everlane – Values
Keep Earth clean, keep Earth cool, and do right by people–sounds like some pretty good aims, doesn’t it? Well, they’re Everlane’s! A direct-to-consumer fashion brand, this company has gained popularity for its transparent pricing and ethical manufacturing practices. Instead of offering discounts beyond clearance items, Everlane focuses on highlighting the quality and craftsmanship of its products, as well as its commitment to sustainability.
Everlane features a dedicated section for holiday looks, showcasing outfits that align with their values of sustainability and conscious consumption. By featuring holiday styles that promote responsible fashion choices, Everlane successfully attracts customers who prioritize transparency and conscientiousness, providing them with an alternative to traditional fast fashion options during the festive season. For those looking to give practical gifts that last, like Santa, Evergreen truly delivers.
Glossier – Community Building & Social Media
Glossier is a beauty brand that has gained a dedicated following for its minimalist approach and emphasis on natural beauty that implements specific actions and initiatives during the holidays to showcase its values and attract customers. Rather than relying on discounts, Glossier focuses on building a strong online community and engaging directly with customers through social media.
One key approach is their emphasis on building a strong online community and engaging directly with customers through social media. They foster conversations, encourage user-generated content, and create a sense of inclusivity and belonging within their beauty community. The statement on their website sums up an attractive reason for beauty enthusiasts to invest in buying their products by being a part of the creation process: “[…]beauty shouldn’t be built in a boardroom—it should be built by you.”
By focusing on community building and offering exclusive holiday products, Glossier successfully showcases its values of authenticity, inclusivity, and natural beauty, ultimately attracting customers who resonate with their approach and seeking a more personalized beauty experience. They create limited edition holiday sets or exclusive product bundles to provide customers with unique and desirable options during the holiday season, further strengthening their connection to the brand despite a lack of discounts.
Rifle Paper Co. – Limited Edition Offerings & Strategic Marketing
Rifle Paper Co. is a small stationery and lifestyle brand known for its whimsical illustrations and distinctive designs. During the holiday season, they achieve a sense of exclusivity and appeal to customers who appreciate unique and beautifully designed stationery during the holidays through various strategies, such as offering limited edition holiday-themed products, such as greeting cards, calendars, and gift wraps.
These products are often the result of collaborations with other brands and artists, adding extra sparkle to their special editions, making them ideal presents for the unique folks in your life who still practice the art of handwriting. They don’t stop at creation to drive interest, however–they also employ anticipation-building marketing techniques to generate excitement among their target audience. The brand strategically unveils sneak peeks or teasers of their upcoming holiday collections, building anticipation and creating a buzz around their products.
Through limited edition offerings, anticipation-building marketing, and collaborations, Rifle Paper Co. successfully creates a sense of exclusivity and captivates customers who appreciate their unique and beautifully designed stationery during the holiday season, for which customers happily pay full-price.
The Sill – Customer Service & Enhanced Experience
A direct-to-consumer plant brand that has gained popularity for its wide selection of indoor plants and educational resources for plant care, The Sill focuses on providing exceptional customer service and educational content that helps customers become confident plant owners.
This smaller brand implements specific actions and initiatives during the holidays to showcase its values and attract customers who appreciate plants. The Sill follows through on its commitment to providing exceptional customer service and educational resources like plant care guides, workshops, and personalized advice to help customers become confident plant owners. This emphasis on education aligns with their value of promoting plant care knowledge and fostering a supportive community.
Seasonally, The Sill creates holiday-themed plant collections or gift sets, catering to customers looking for unique and thoughtful gifts. These offerings feature carefully curated plants and stylish packaging, showcasing the brand’s dedication to aesthetics and quality. Paired with excellent customer service, educational content, and holiday-themed plant options, The Sill successfully showcases its values of the joy of green living, attracting customers who value these aspects and seek meaningful and sustainable holiday gifts.
Your Small Business Can Become a Holiday Premier Brand, Too!
See? Even small businesses can avoid relying on discount strategies and put their wares for sale at 0% off to their benefit. The above examples demonstrate that small businesses can succeed in the holiday season without relying on discounts through a plethora of choice actions. Emphasizing unique value propositions, creating exclusive or limited edition offerings, providing exceptional customer experiences, or leveraging their brand’s values and storytelling–there’s a strategy or two that can work for almost any company of any size. It comes down to understanding their target audience and effectively communicating their brand’s appeal.
In conclusion, smaller brands can flourish during holiday seasons without relying on discounts by employing a range of effective strategies. Small businesses can, and arguably should, mold their own hook to reel in the attention and loyalty of customers during the festive season and become a premier brand in their own right using “no-sale” strategies.
Let’s light up the holiday season with proven strategies and tactics to get the result you deserve. How can we help?
