Everyone who works in the retail business knows there are times of the year when you have to hold a big sale, even if it’s only to push out old merchandise that’s taking up floor space when you’ve got new products to promote. It’s part of the yearly sales cycle, and an important part of good inventory management.
These sales reinforce the need for retailers to collect and analyze information on their customers. If you can track who bought what, when they bought it and what they paid for it, you can divide your customer base into different segments—including the “red-line” shoppers who respond best to promotions around clearance sales.
Once you’ve done this, you can maximize the sale’s impact by making sure it’s promoted to the people most likely to take that clearance stock off your hands. Even if the product is priced to sell quickly, you can compensate for the lower prices with increased volume.
Get to Know the Process More
Understand how your analytics can help segment and target your clearance-loving customers.
You can also minimize your ad spending by target marketing. Target communications to red-line shoppers as the sale day approaches. Email them, text them, or send them direct mail—whatever method has worked best in the past. (You should have that data, too.)
We know that clearance sales are great for thrifty shoppers, but tough for retailers. The good news: it’s possible to flip a clearance sale from a necessary evil into a golden opportunity. Don’t look at clearance as making small profit margins—look at it as bringing in a whole swath of new customers you might otherwise never see.
The trick is to grab these red-liners while they’re in your store, and use their attributes to convert them into full-price buyers. It just takes a bit of strategized data. Take note of their favorite brands, categories and choice items, then use the data to send out targeted messaging. Just because they’re cleaning up your clearance today doesn’t mean they won’t come back for full-price tomorrow.
See How it’s Done!
Learn how Lift361 assimilates new customers into the brand more quickly by accelerating their subsequent purchases and reducing the time between transactions.