Have you ever thought to yourself “Wow, this brand has 50% off sales all the time – how odd?” Or maybe you’ve been subscribed to a company’s email list and were bombarded by daily flash sales, eventually leading to an unsubscription. Both examples are the repercussions of brands overusing short-term sales tactics rather than focusing on long-term brand building.
To be a successful brand, it is imperative to gain the trust of your audience, representing authenticity and building an emotional connection. Short-term sales tactics steer away from this by exploiting brand equity and giving the perception of low quality and slight desperation, ultimately hurting your brand’s image. Homing in on discounts, buy 1 get one, or “everything must go” promotions may cause a slight spike in sales in the short-term but brand building and creating loyalty acquires more equity and sales for brands in the long run. Take retail store Edikted vs Spotify for example – Edikted is known for having a “50% off everything” sale every week. They blast this through paid media ads, email promotions, socials, and text messages. This style of intense short-term sales gives Edikted the illusion of fast fashion, low quality, transactional, and borderline spam. On the other hand, we see Spotify mindfully select their advertising in a personalized way to consider the consumers’ likes and interests: such as Spotify wrapped, a daily curated playlist, and student or healthcare discounts. These approaches engage every audience member personally and contribute to an emotional relationship with the company, leading to loyalty.
All in all, the goal for each marketer should be to find a balance between short-term sales tactics and long-term brand building. Although temporary promotions could increase income right away, the success of a brand depends mostly on the trust, authenticity, and emotional connection developed over time. By concentrating on both sides, companies can make sure they are not only making sales now but also creating loyal customers who will drive sustained growth in the future.