Get Customers Excited with a Flash Sale

At a time when businesses— large and small — literally spend over $300 billion a year on customer loyalty plans, new research shows that retailers who have embraced product drops, flash sales and private events are reaping some of the best customer retention results in the business.

According to Product Drops: Retail’s New Conversion Play, a collaborative survey of 2,300 U.S. consumers done by PYMNTS (www.pymnts.com)  and Scalefast, not only are these typically young consumers loyal and eager to spend, but they’re excited enough to wait in line to get access to a brand they love.

While the concept of retailers doing limited edition promotions is not new, the refreshed, three-pronged 21st-century version is definitely trending right now.

According to the survey, 75 percent of shoppers who attended a special product drop event said they were “very” or “extremely” satisfied with the experience.

Similar 70-plus percent enthusiasm levels were also reported with flash sales and private sales, with nearly half of respondents saying they had taken part in one of these types of buying events within the past month.

As far as why consumers seek out and go to these hyped shopping events, the survey showed a variety of reasons, ranging from “they’re fun” to a desire to avoid stores or gain access to high quality or difficult to find products.

However, more than anything else, 7 in 10 consumers said they went to these sales events because they offered good deals.

According to Joe Farrell, managing director, EU Operations, at branding and commerce adviser PFSweb, it takes more than trendy merchandise to win at this game. For example, Farrell said brands should also consider things like pop-up distribution centers to spread inventory and avoid delays, or launch hybrid stores that reallocate idle space and in-store retail staff.

“True loyalty is emotional and irrational and leads to customers feeling like they’re part of an exclusive membership group which then leads them to become loyal subscribers or consumer network participants,” Andjelic said. “People appreciate being part of a club — and feel badly when they’re not.”

  • CannaAid and Peak: Something new for everyone.

Recent Articles

Boost profits with these holiday cannabis sales strategies to build Q1 momentum through promotions, gift cards, bundling, and future-focused planning.
Learn how to create a holiday cannabis retail experience with sensory design, festive displays, gift bundles, and events that boost sales and traffic.
Discover 12 cannabis stocking stuffers and upsell ideas in this cannabis holiday gift guide to boost sales and delight last-minute shoppers.
Discover how Southern Hemp LA creates clean cannabis products with simple ingredients, strict standards, and Cajun charm in Louisiana.
Get ready for the holiday rush with this cannabis holiday retail guide, including tips on staffing, inventory, customer service, and burnout prevention.
Tina Ulman is reshaping cannabis policy and expanding access, from changing Nevada laws to launching brands that bring new consumers to the plant.
As a lifelong stoner, feminist, and teacher, Luna Stower does know how intersectional plant medicine can be.
“Whenever somebody sees ‘Sales Guru’ on my card, they ask how you become one,” he says. “I tell them that you spend your life in sales, and you go to Nepal to climb the Himalayas to meet the real gurus. You get the wisdom from them, then you bring it back down and apply it to your life.”