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As a consumer, it's hard to see the price-cut season end. Nothing more fun than getting a really serious bargain, on the Web or in the mall. But for anyone betting on the e-tailing industry as a viable business, the end of cut-rate pricing is a positive sign. Beyond the obvious profit-sapping, price cuts presented an insidious danger to the e-tail industry. They kept the e-tailers from developing real marketing plans. Let's be clear on something: Price cuts are a marketing tactic, not a marketing strategy. But as long as they were roping in the customers, few e-tailers put in the serious work of developing a good, solid message to keep shoppers coming back. Now that most have run out of money to keep this ludicrous practice afloat, e-tailers need to focus on what else -- besides a low price -- might attract consumers to an e-store. The good news is, consumers like plenty of things about the Web. Price is nice, but e-tailers can provide far more. And when these features are properly offered, consumers will respond. Service: BarnesandNoble.com has stepped up the service proposition in recent weeks by testing same-day delivery. I tried it. I love it. On a recent Friday morning, I realized my son had back-to-back birthday parties on the weekend, and I'd purchased no gifts. I logged on, picked two popular children's books, and by the time I got home that evening, I had them in hand, complete with gift wrap and nifty little froggy stickers. Barnes and Noble solved my problem -- that's the definition of good customer service. Would it have been cheaper for me to get to a bookstore and do the shopping myself? Sure. But on Friday morning, staring down the barrel of the birthday bonanza sans gifts, price wasn't my immediate concern. Service got my business. Selection: That's what first got Amazon on the consumer radar screen, and it's the element that'll always set the clicks apart from the bricks. Having a vast selection is where traditional retailers can't compete -- even the big-box stores don't offer the breadth of a true virtual retailer. Even better, a plethora of choices plays to a very powerful consumer trend. The era of mass-market brands is fading. More and more, marketers are finding that consumer tastes are fragmenting. That trend hurts major retail chains, but it benefits an e-tailer that can serve mass quantities of niche tastes. Take beauty. Department store cosmetic counters have to stock the biggest brands -- it wouldn't be a cost-effective use of space to do otherwise. But online beauty companies can play to the growing desire for out-of-the ordinary, even personalized, products. For the woman looking for a special shade, personal attention is worth money. Smart e-tailers will hype their ability to serve anyone, anytime, with anything. Now, here's the hard part. The e-tail community needs to make its new, improved, non-price-oriented marketing case quickly. It's a message that has to sink in by the fourth quarter, because this coming Christmas will be a make-or-break season for many. Wall Street won't be giving this industry many more chances to prove itself. Neither will shoppers. E-tailing has a lot to offer consumers. But it must get the word out that the Web's advantage is much more than a low price. So, don't mourn the death of the price cut. As a tactic, it's gone. E-tailers need to move on. Many already have the makings of powerful marketing messages. But they need to launch them soon. Neuborne covers Marketing for Business Week in New York. Have a question or a comment? Let her know at ellen_neuborne@ebiz.businessweek.com. |
