You should run a flash sale if your goal is to meet at least one (or all) of the following: Customer Lifetime Value (CLTV) is an important component of one’s long term business strategy. Besides profitability, CLTV is the second best metric in determining sales performance.
Your CLTV can be an indicator of whether or not your sales are working for your long-term business strategy.
Flash selling helps you improve CLTV because it will help you in answering the following questions:
Flash sales can fail too 4 ways your flash sales can go wrong
It’s hard to imagine flash sales failing. If customers are informed of marginalized prices, more often than not, customers will be more likely to make a purchase.
Historically, though, there have been some businesses built on the flash sales model that have experienced a decline in revenue.
Back in 2013, Totsy, the flash sale site had to lay off 83 of its employees and hire Consensus Advisors to sell their assets.
GSI Commerce also sold RueLala to eBay due to the fact that it dragged down their profits in 2011.
Site crashes are usually the leading phone number list cause of flash sales failure. Other times, it is caused by the following:
1. Failed Delivery / Old Delivery
One of the most important factors that shape the customer experience is what happens after the purchase.
It is a common problem for customers to receive their merchandise for several weeks and an even bigger problem when the product comes in installments.
Failure to Assess Required Supplies
Flash sale items sell faster than regular items by 45%. One way to disappoint your customers is to build excitement in the form of a flash sale, only to find out that the product is out of stock.
There is a flash sale study that states that one of the reasons some people avoid buying from flash sales is that they don’t want to GMX Email List be disappointed when the item they want is no longer available.
If you leave a customer disappointed, they will usually vent to word of mouth or social media. Not only will you suffer lost sales but disappointed customers will also have a negative impact on your brand.