by Leigh Goessl

Created on: April 10, 2010

The Internet has afforded marketers all kinds of unique opportunities to expand their customer bases and increase sales. Thanks to web advertising, e-mails and other Internet avenues, companies can now aim to tap into different kinds of consumer bases and hope to make a sale.

Enter flash sales.

Flash sales are heavy discounts that buyers are presented with as they are either window shopping or serious shopping. The online environment is the perfect match to integrate the flash sales philosophy because of the frame work. Internet shopping is convenient, easy and fast, and what better shopping atmosphere to try and get shoppers to spend more money even if they don't want or plan to than one that allows such rapid purchases to take place?

The catch is these sweetened deals are not long-term and typically do not give consumers a long period of time to make a decision or comparison shop. Foodconsumer.org categorizes flash sales as "kind of similar to short sales in real estate. Cutting the price deeply to secure a quick sale". Since the pressure is high, the allure of a good price is likely one of the strongest contenders for the reasons why flash sales can work so effectively if presented in an appealing and attractive manner.

As an example, Theoutnet.com considers themselves a flash sale website. According to the company web page they offer "Pop-Up sales, Giveaways and Going, Going, Gone" sales. Once a special deal begins, the clock starts ticking as to how long the deals are available. Buy too soon a consumer might pay a little more, but buy too late, inventory may end up being depleted by other eager shoppers.

To take advantage of these special offers this particular company requires shoppers to register an account and sign in before the shopping spree begins. This requirement is very beneficial to a company such as Theoutlet.com because they can use analytics and track what their shoppers and visitors are doing. The latter is very useful to help pinpoint what consumers want so marketing efforts can be better targeted towards audiences.

Tracking visitors and obtaining e-mail marketing lists also enables marketers to send targeted e-mails to consumer e-mail boxes with future enticements to help boost sales and expand their consumer base.

The impulse factor is a huge component of why flash sales get people to spend more money even when they don't want to. Since flash sales are typically timed, consumers often have to make a snap decision on whether or not to spend. If the discount is attractive enough; some reports indicate discounts can be as high as 70-85%, there's a good chance a consumer will buy the item(s) advertised in these quick sales.

Companies that offer flash sales don't seem to have much to lose. Not only do they move inventory this way, they can attract and keep consumers that may not have given them a second glance otherwise.

References:

http://www.foodconsumer.org/newsite/Non-food/Miscell aneous/flash_sales_1004101026.html

http://www.theoutnet.com/Event

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