The Importance of Brand Storytelling to Create Value and Avoid the Perils of Endless Discounting
By Will Saunders, Account Director @ PRECIOUS
For most brands, sales will always be a key performance metric behind any campaign. However, the pressure to deliver sales can often lead to a myopic view of brand strategy. The most effective use brand storytelling to build consumer advocacy and encourage customers to open their wallets.
Why Endless Discounting is a Short-term Approach?
Discount pricing can be an effective way to quickly deliver more sales for brands engaged in eCommerce, but typically this approach lowers conversion rates and returns.
Volume discounts, seasonal discounts, promotional discounts, and loyalty discounts all have their place in the marketing mix, but they need to be integrated sparingly and tactically in order for brands to avoid being seen as ‘permanently discounted’ – harming overall customer perceptions of brand value and quality.
For any brand looking to deliver long-term growth, customer perception is key. Brands who continually discount their goods are in effect training customers to wait for the next reduction before being incentivised to purchase.
As an agency working with premium brands to devise eCommerce and brand strategies across the luxury, food and drink, and sports and entertainment spaces, our goal is to help clients ensure that their reputation with customers is one of quality and service.
That’s where the big picture approach comes in; developing performance metrics that move beyond pure sales and executing holistic campaigns that deliver a series of strategic integrated objectives.
How Brand Storytelling Builds Long-term Equity and Drives Sales
Authentic, purposeful brand storytelling is a vital tool to help brands build consumer advocacy, and helps ensure that campaigns can deliver against wider objectives than solely shifting product.
Telling stories is a critical part of brand building. In the social media age, every brand is a publisher with the ability to control their messaging and determine who sees it. Get brand storytelling right, and brands of any size can develop connections with audiences and create customers who will buy because they love what brands do, what they stand for, and the stories they tell.
A plethora of recent high-profile brand storytelling activations, from Red Bull Stratos to Nike’s Breaking 2, and from Netscout’s Werner Herzog-helmed documentary Lo and Behold to Patagonia’s Artifishal have all succeeded in clearly defining brand positioning and messaging, but also fostered the misguided impression among many marketers that brand storytelling is an expensive luxury for multinational corporations – and one that doesn’t integrate the brand’s products or directly impact sales in any meaningful fashion.
However, the truth is that brand storytelling can be the rare medium that allows you to have your cake and eat it.
When developed as part of a holistic campaign ecosystem, brand storytelling can not only organically showcase and promote brand products, positioning, and b – but also drive the consumer journey from content to commerce environments.
PRECIOUS work with brands to help direct this consumer journey; placing product front and centre in content that audiences will watch and share, and using the same content assets to organically lead consumers to digital commerce environments.
Brand Storytelling Converts Casual Shoppers into Die-Hard Fans
We have used this brand storytelling ‘content to commerce’ approach to deliver a 200%+ Return on Advertising Sales (delivering £200 in sales for every £100 spent on media) for clients including Diageo – building brand equity and driving sales through storytelling..
Diageo Reserve utilised brand storytelling through a five-part travel series World Class List that saw aspiring drinks enthusiast Carey Watkins explore the best of what to eat and drink in key cities around the world. The documentary features some of the world’s top bartenders explaining how to make the best cocktails using Diageo Reserve brands such as Johnnie Walker, Ketel One, CÎROC and Don Julio. The content was distributed across Amazon Prime platforms that allowed consumers to not only be inspired by their favourite cocktail recipes but conveniently purchase Diageo Reserve products.
Precious is a content marketing and digital commerce agency that helps brands use content to improve sales. Get in touch with us today to find out more.