Is Offer & Discount Driving Brand Sales…admin
What do Brand differentiate?
Our teams interact with more than 350 customers on a given day. A key element of interaction is to get a sense of the customer buying behavior and mind set during purchase of high value branded good or services. Facts emerging out of this analysis is not surprising though it can be alarming for many. It is seen that price and offers are driving the buying process. Customers feel that All the brands are same, no major differentiator is visible among brands. Emotional connect with the brand is deeply interleaved with few but still not substantial enough to make much influence.
Thanks to social media and e-commerce, buyers scan through price and discounts on popular sites, talk to a few people and finally approach the nearest store to make good deals. No wonder why e-commerce sales of higher value goods is not making any tangible impact in the gross sales or GMV.
This reemphasizes the fact that brick & mortar stores remain the largest channels for brands of higher value. But if customers are exploiting e-commerce to negotiate the best deals with offline stores ,then it is to be seen how the legacy of good old brands will survive. Are these giants geared up to face it ?
Will they get lost in the buzz of e-commerce and social media noise?
More than 98% of customer foot print is offline but little attention is given to that. It is a fundamental contradiction. No wonder why customers feel that all the brands are same. Companies have invested for decades in building differentiation of brand not to compete on discounts. Since this is the emerging reality, no one but brand owners have to take primary responsibility for this erosion. They must acknowledge the cause and do corrections otherwise extinction is inevitable.
After sales support is the critical brand differentiation, that itself is not taken seriously many a times. There is rarely any process or tech innovation to understand and track this phenomenon.
80% of the customers are completely invisible to seller brands after an average time cycle of 2-2.5 years but it rarely comes into priority list of innovation.
Customers across age groups and geographic regions are adopting digital medium at a growing pace, thanks to affordable price of data and mobile phones. What remains to be seen is how product innovators and high value brands across whitegoods, automotive and insurance exploit this opportunity to survive.
Clearly there is no option in front of companies but to connect with users of their product and create experience based on promised brand value. As popularly said,
“Brand is a story unfolding across all customer touch points”