Have Lancome's Frequent Sales Created a Buyer Hesitation Pattern?

Is your relentless sales strategy backfiring? Grips data reveals a surprising trend from Lancome: instead of boosting revenue, Lancome’s frequent discounts are leading to sharp drops in sales during non-sale periods. Are customers being trained to wait for the next sale, turning discounts into a double-edged sword for this beauty giant? Dive into our analysis to see if Lancome’s approach is a cautionary tale for e-commerce.

When analyzing our anomaly alert feed, we noticed that Lancome has cultivated an environment where frequent sales have become the norm. Instead of seeing clear evidence of a sale on revenue (though to be fair, there are a few stand out spikes), our eyes were drawn to the mysterious and notable drops in revenue which coincide with the short intervals between sales. This pattern suggests that Lancome’s customers have been trained to expect frequent sales and thus hold off on purchases until the next sale begins.

Looking at the daily revenue chart for the past three months, we see clear evidence of this trend:

• June 1 to June 4: There was a noticeable dip in revenue. Lancome’s 30% off sale ended on May 31, and without a new sale until June 5, customers paused their purchases, anticipating the next sale.
• March 8 to March 10: Another dip in revenue is seen here. This period marked the end of a 30% off sale on March 7, with the next Buy One Get One (BOGO) sale starting on March 11.

Lancome-usa.com daily revenue

These dips in revenue indicate that Lancome’s customers have adapted their buying behavior to align with the brand’s frequent sales schedule. They delay purchases during non-sale periods, confident that another sale is just around the corner.

While frequent sales can drive short-term revenue spikes and attract bargain hunters, they can also lead to unintended consequences:

• Buyer Hesitation: Customers may develop a “wait-and-see” approach, delaying purchases until the next anticipated sale, which disrupts consistent revenue flow.
• Perceived Value: Constant sales can dilute the perceived value of the products. If everything is always on sale, the perceived original value may decrease.
• Brand Loyalty: While sales can attract new customers, over-reliance on discounts can erode brand loyalty as customers become more price-sensitive and less attached to the brand itself.

Lancome’s situation is not unique but provides clear evidence of the challenges facing e-commerce managers and marketers. While sales and discounts are effective tools for driving traffic and sales, they should be used strategically. Overuse can lead to a cycle where customers expect and wait for discounts, undermining full-price sales.

• Are we relying too heavily on sales to drive revenue?
• How can we create value outside of sales periods?
• Are there alternative strategies to engage and retain customers without constant discounts?

By reflecting on these questions, e-commerce professionals can develop more balanced strategies that ensure sustainable growth and customer loyalty.

The data from Lancome-usa.com highlights an intriguing trend in customer behavior shaped by frequent sales. It’s a powerful reminder of the importance of strategic sales planning in e-commerce. As e-commerce professionals, it’s essential to strike a balance between driving short-term sales and maintaining long-term brand value and customer loyalty.

Take a closer look at your e-commerce sales strategy. Are you fostering a loyal customer base or creating a cycle of dependency on discounts?

Understanding and leveraging these insights can help you optimize your sales approach, ensuring consistent growth and a strong, loyal customer base. By carefully planning your e-commerce discount strategy, you can avoid the pitfalls of frequent sales and build a more resilient and profitable business.

Want to see how our Grips platform can uncover hidden insights in your e-commerce data? Book a demo with us today and take the first step towards smarter, data-driven decisions.