Discount: It’s No Silver Bullet but A Strategy for Success
From Black Friday to Boxing Day Sales in Australia, 87% of locals crave for exclusive discounts or limited-time offers that are value-driven. Does the pursuit of discounts come at a cost for Australian retailers?
In this post-event narrative, we interviewed Sami Khan, Digital Marketing Director of MAAP.cc on how to utilise discounts effectively. He emphasises on the need to master the balancing act: too much discounting can erode brand perception and margin, but well-timed and strategic campaigns can bring value to retailers in the long run. A well-defined strategy rests on maintaining product integrity and enhancing customer engagement.
Why retailers should not be relying heavily on discounts
For Sami Khan, the underlying principle behind discount offerings is to “provide value to our customers without diluting our brand equity.” Though discounts can be a secret weapon when it comes to attracting new customers and increasing sales volume, they can backfire when customers begin to question the value of your product.
Therefore, Sami emphasises the need to focus on other factors to promote long-term value in their brand and allow for sustainable growth. He mentions to “focus on value-led communication, building excitement around our new launches, and emphasising the quality, innovation, and sustainability behind our products.” This approach maintains their value proposition without putting their brand at risk of losing its inherent value. They can also maintain pricing integrity and exercise room for flexibility when needed.
Customers are not just price-conscious, they value experiences
While price remains a factor, Sami sees a clear trend where customers value experience, community, and brand ethos as drivers of conversion. At MAAP, he states that they invest heavily in building a community around their brand, with initiatives such as Strava challenges, in-store rides, and immersive digital experiences. As customers wish to be part of a shared journey, identifying their personas and understanding critical pain points will pique their interest and encourage long-term engagement. As stated by Sami, their repeat purchase rate from those who engage in our events or rides is almost double that of a regular customer.
Besides, Sami mentions that other factors like product innovation, sustainability, and fit are key to their customers. They place a strong emphasis on the performance of their materials, including moisture-wicking fabrics and sustainable designs, which resonate with their target audience’s desire for quality and environmental responsibility. So, while price is a consideration, it’s certainly not the only driver to building customer loyalty and driving skyrocketing profits.
Micro-Personalisation and Hyper-Personalisation
As much as ‘personalised discounts’ have been a trend for retailers, personalisation plays an integral role in the way it enhances customer experiences and drives long-term engagement. Personalised experiences — from customised product recommendations via Nosto to tailored emails and ads using CDP and ESP data — help to improve relevancy and increase conversion rates.
At MAAP, Sami states that they see personalisation as an innovative way to build deeper relationships with our customers. Personalisation ensures that every touchpoint, from emails to website experiences, feels relevant to the individual’s interests, riding preferences, and previous interactions with the brand. Even when a discount is involved, a personalised journey makes that discount feel more meaningful, and they witness higher AOV (average order value) and retention from those hyper-targeted efforts.
On the other hand, micro-personalisation can drive revenue at scale, but it requires a balance between data-driven insights and automation. With CDP feeding data back into ESP, retailers can execute hyper-personalised campaigns without manually segmenting every audience group. For instance, we can identify and segment our customers by their cycling discipline, preferred fit, or past purchase behaviour, and deliver tailored content based on those preferences.
At scale, this drives higher engagement rates and conversion metrics, which in turn impacts our bottom line. By automating the bulk of these journeys while continuously refining based on data, we can personalise at scale without overwhelming the team. And while the goal is revenue, we know that these micro-journeys are also building long-term brand loyalty — an investment that pays dividends well beyond a single transaction.
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