Let’s address the elephant in the room. Companies without minimum advertised price (MAP) policies are putting their ecommerce teams in a tough situation.<\/p>\n\n\n\n
According to McKinsey research<\/a>, nearly 40% of consumers switch retailers to get better deals.<\/p>\n\n\n\n The challenge is no different from the classic showrooming problem that has plagued retailers for over a decade. Your customers discover your products, compare, and then disappear to buy from wholesalers, retailers, or resellers offering lower prices.<\/p>\n\n\n\n Because they can’t compete on price and leadership won\u2019t budge on enforcing a MAP policy, many teams will simply throw their hands up and concede that 40% of price-sensitive shoppers will buy elsewhere.<\/p>\n\n\n\n Before you do that, I want to share an alternative POV. After working with hundreds of ecommerce brands to increase conversions, there are some tried and true strategies that will deliver in spite of MAP restrictions.<\/p>\n\n\n\n It starts with reframing the situation. Customer acquisition isn’t the problem. Customer preference is.<\/strong><\/p>\n\n\n\n Instead of trying to win the price war, it\u2019s time to focus on better customer experiences and compete in areas that can\u2019t be replicated by the competition.<\/p>\n\n\n\n The insight:<\/strong> 72%<\/a> of consumers expect personalized experiences. Resellers can’t always deliver them.<\/p>\n\n\n\n While you can buy Glossier products at retailers like Ulta and Target, Glossier’s direct channels offer something those retailers can’t: a personalized skincare quiz that analyzes your skin type and concerns to curate 3-5 products specifically for your needs.<\/p>\n\n\n\n Their website shows personalized product recommendations based on your quiz results and browsing behavior, creating a tailored experience that feels custom-made.<\/p>\n\n\n\n This is the idea of selling the experience of being your customer and making it a seamless, one-of-a-kind experience to shop with you.<\/p>\n\n\n\n What this looks like in practice:<\/strong><\/p>\n\n\n\n The insight:<\/strong> Exclusive SKUs and premium products can command 20-30%<\/a> higher profit margins. While your resellers can sell your products, they can’t sell your brand or your relationship with customers.<\/p>\n\n\n\n Nike didn’t always beat resellers by matching prices. They created SNKRS app exclusives and limited colorways that resellers literally cannot obtain, contributing significantly to digital revenue and spiking DTC sales during the pandemic.<\/p>\n\n\n\n The strategy works because exclusivity creates urgency, and urgency often trumps price sensitivity.<\/p>\n\n\n\n What exclusive access looks like:<\/strong><\/p>\n\n\n\n The insight:<\/strong> Experience-based loyalty programs<\/a> can make the shopping experience delightful without lowering prices.<\/p>\n\n\n\n 84%<\/a> of customers say they\u2019re more likely to engage with a brand that offers a loyalty program, which is a game-changer for ecommerce companies without MAP policies.<\/p>\n\n\n\n For example, members of Sephora’s Beauty Insider program generate 80%<\/a> of its total sales. While the program doesn\u2019t guarantee products at the lowest price, it does offer exclusive access, personalized services, and community benefits that competitors cannot provide.<\/p>\n\n\n\n Loyalty programs that work:<\/strong><\/p>\n\n\n\nSolution 1: Make the experience worth the premium<\/h2>\n\n\n\n
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Solution 2: Create exclusivity that other sellers can’t touch<\/h2>\n\n\n\n
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Solution 3: Build loyalty programs that compete with discounting<\/h2>\n\n\n\n
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