Discounts can't buy brand intimacy

Ask any shopper in the UAE, and they will tell you that the Dubai Shopping Festival (DSF) is the perfect time to splurge on new purchases.
While this is undoubtedly good news for UAE retailers, a key challenge today lies in finding the correct balance between attracting new customers, and retaining their older customers, especially during lengthy periods of citywide discounts. To this end, experts at brand intimacy agency, MBLM, have highlighted several points that can help brands find the correct balance during competitive promotional sales, such as focusing on brand intimacy and on providing the proper shopping experience.
The DSF, over the past two decades, has attracted over 56 million visitors and over Dh145 billion in total spend. Robust sales aside, brands are confronted with 'discount temptation' during the period. This is a condition where finding the best deal overrides all other factors that would normally be considered in a purchase decision. In this state, consumers are more likely to succumb to the temptation to stray by the myriad of cost-effective opportunities and deviate from developing and existing brand loyalties. Even in a market where nearly 40 per cent of the surveyed consumers profess to have an intimate relationship with brands, a purely price-driven landscape hinders brands from forming an enduring engagement with consumers.
An MBLM study examining the emotional bonds between brands and 6,000 consumers across the US, Mexico and the UAE, found that on average 36 per cent of the most 'brand intimate' consumers were willing to pay 20 per cent more for their brands. This can be a powerful tool for retailers especially during long sales periods.
Experts at MBLM advise brands to elevate brand-loyal consumers to brand-intimate consumers. This can be done by offering exclusive access to a collection of sale items available only to loyal consumers. Another suggestion involves capturing brand first-timers by making a great first impression. Even something as simple as a branded 'thank you' note that gets placed into the shopping bags could help make a more positive impression of the brand.
Retailers can also come out stronger during competitive sales periods by resisting the urge to convert the shop into a flea market atmosphere. This includes additional training and staffing adequately, knowing that the personal engagements between the employees and consumers can make or break future purchases. Lastly, brands should also focus on delivering on the fulfillment archetype. This brand relationship is often characterised by exceeding expectations, delivering superior service, quality and efficacy to develop a stronger emotional connection with customers.
- rohma@khaleejtimes.com