CMO John White shares the tools for attracting today’s price-conscious consumer.
Promotional messaging wins out in today’s price-sensitive market
By Alan Wolf, YSN
Now that the post-COVID sales spigot has run dry and consumers are squeezed by rising interest rates and stubborn inflation, a high-profile promotional posture has once again become mandatory in the world of home goods retail.
That was the message that AVB’s CMO, John White, delivered to members on Monday in a no-nonsense assessment of the marketplace during the 2023 Summit General Session — along with a simplified solution for staying top of mind with shoppers.
For better or worse, price has become the number-one driver of big-ticket purchases, White said, as cited by nine out of 10 shoppers, and is the top determinant of customer loyalty for 92% of consumers. That’s why members’ flagship stores — their websites — “need to scream that you are the best place to shop” for savings, price guarantees and special offers, he said, and those who are high-priced or not priced are out of the running.
As well, dealers must trumpet their promotions in their marketing, in their social media and on the sales floor, he said.
White acknowledged that some members are reluctant to do battle on price, whether out of concern for margin erosion, the absence of nearby competitors or a negotiable pricing strategy in store. To that he countered that retail sales growth will generate profit-dollar growth; that any box store that delivers to your ZIP code is a competitor; and that any variation in price between your website and physical store could cost you the consumer’s confidence and trust.
His advice: Charge separate, market-priced fees for after-sale services; sort and flag your online assortment by best-selling and in-stock status; and up-sell and cross-sell effectively — all of which can be managed for members by AVB Marketing (AVBM).
To help members get their promotional messaging across, AVBM can also auto-place pre-designed or customized banners; provide year-round, quarterly promotions covering the critical peak as well as off-peak periods; and provide the data-driven, back-office tools that comprise the comprehensive MTEQ suite of digital solutions, White said. The latter, he noted, is the “life blood of your business,” and combines “customer, catalog, inventory and point-of-sale data all in one platform to enhance your ability to serve your customers and run your business.”
These elements include:
- the SYNC point-of-sale system, which provides customers and staff with accurate pricing and in-stocks, and will begin filing members’ sell-through allowances beginning in April
- HUB, which provides a complete customer history, creates quotes for emailing or texting, and serves as a single source for all product catalog data, including specs, promotions and inventory
- KIOSQ, which brings an “endless aisle” of products to your brick-and-mortar showroom and acts as a “silent salesperson” to offer merchandise and private-label financing.
White described this retail technology as essential for marketplace success. “Your customers expect it,” he said, “and being efficient in your store and with your customers will contribute to customer loyalty and your bottom line.”
Members are invited to review their retail tech standing with the actionable “Plug-In Plan Checklist,” distributed at Summit.
YSN publisher AVB BrandSource is the nation’s largest merchandising and marketing co-op for independent appliance, mattress, furniture and CE dealers.
