Feelter blog

Whether online or shopping in a bricks-and-mortar retail outlet, one common denominator among all consumers is that they are all potentially impulse buyers. Everyone loves a good deal, especially if it’s only available for a limited time and features much-sought-after products. The “flash sale” was conceived to take advantage of this very trait in consumers. In fact, buyers often purchase special products in a flash sale that they would not normally want, purely because it seems like such a limited-time available, “good deal.”

Aside from a high profile, buzz-worthy way to quickly sell overstocked or end-of-line inventory, there are a number of additional reasons why flash sales are a good idea. While flash sales always have a time limit on their duration – anything from a few hours to a few days - they can also have a limit on the quantity of products offered. The more limited the quantity and time, and the greater the discounts, the more likely the average browsing consumer will turn into an impulse buyer. However, it is important to focus on, and define, a specific target market before marketing the flash sale. The wider the net and the broader the target audience, the lower the conversion rate.

Focusing the flash sale on end-of-season or out-of-season products can be a great way of clearing out the shelves and the inventory for the new season. Additionally, less stock sitting on shelves can cut inventory costs.

Brand awareness is another benefit. If there is one thing the Internet is supremely good at, it’s publicizing great deals. A successful flash sale will live on long after the last product is sold, at least in a Web site’s reputation. Which in turn can be highly effective in appealing to new customers and getting them to visit a site and maybe even sign up for a regular newsletter announcing future flash sales.

If a retail site’s bottom line is lagging or going through a slow period, a flash sale can provide a temporary financial boost. While that may not be much help in the long term, a short term boost is better than no boost!

That said, there are also long term benefits to flash sales. For one thing, you’re more likely to cross-sell to an existing customer than to a non-customer. So even though someone became a customer through a discounted product sale they could still be interested in other products, especially if they were given an extra discount, 10-20% for example, for buying at a previous flash sale. The same can be said for upselling. You can’t upsell if someone hasn’t bought something in the first place.

One of the biggest benefits of a flash sale is that it opens the consumer up to becoming a loyal future customer. Whether it’s from further flash sales or helpful customer service or followup marketing, loyalty is earned. A flash sale can be the first step to acquiring a long-term, loyal customer.

However, if care is not taken, flash sales can be a double-edged sword. They have to be conducted correctly or that hoped-for good will from a successful, well-attended flash sale could quickly turn into a PR nightmare on social media. General bargain hunters may have no intention of becoming future loyal customers, so any management mistake could be amplified in chat rooms and message boards. Furthermore, whatever product is being sold needs to be in stock and ready to ship, and publicized fulfillment timeframes need to be adhered to.

For example, if two-day shipping was a condition of the flash sale, then the product needs to ship in two days. Nothing else will suffice. In addition, regular flash sale buyers often expect one-day shipping. Consequently, making sure the “terms of service” for the flash sale are well-publicized beforehand is imperative. Also, testing the Web site for potential load crashes under extreme use - such as a well-attended flash sale – is vital. The last thing any company needs is for their site to crash as sales are coming in.

Just as with bricks-and-mortar stores, flash sales for online retail can be a very valuable marketing tool with major benefits, such as getting rid of excess inventory and encouraging long-term loyal customers. But as with any online business, effective execution is essential and care must be taken to ensure the sale goes as planned with adhered-to fulfillment commitments.
By Smadar Landau