From acquisition to retention: 30 best promotion campaign ideas for fashion retailers

Fashion and apparel brands are facing increased costs to attract customers and adjusting to changes in how people spend their money. In the shadows of inflation, climate concerns, and geopolitical instability, 36% of European consumers have been tightening their financial belts on non-essential items. For the fashion industry, this underscores the need to not only attract new high-value customers but also to continue building long-term relationships with existing ones.

This demands a laser-sharp focus on personalized promotions, a paradigm shift that goes beyond the mere, short-lived allure of discounts. Research on promotions efficiency shows that 60% of shoppers would prefer to receive more relevant promotions instead of just more promotions. The growing customers' expectations for personalized offers means that instead of employing one-size-fits-all approaches, leading fashion brands need to strategically invest in promotions that tie back to profitability - all without compromising their brand’s image.

The British online fast-fashion retailer, ASOS, is an excellent example of shifting from steep discounts to personalized experiences in the fashion industry. Due to small, frequent orders with high returns and high discounts, ASOS was losing £6 per order with a small segment of their customer base (6%), driving a whopping £100m loss. Investigating the roots of the loss, they stated that “from FY18 to FY22, our stock levels doubled and so too did our discounts, significantly eroding our gross margin and with it our profitability.” ASOS found out that by relying on their broad discounts, they “miss the key stages in a customer’s journey and risk losing them to peers.”

The blow to their profitability made ASOS reconsider their discounting and return policies. Instead of broad discounts, they decided to “retain a disciplined approach to profitability and cash generation” by showing up at every step of the customer journey - “from discovery to purchase through to loyalty and advocacy.”

The ASOS case highlights the fact that by implementing granular deals, smart pricing strategies, and personalized rewards, fashion brands can nurture enduring customer relationships that drive long-term growth - and maintain margins.

Talon.One’s report, “From acquisition to retention: 30 best promotion campaign ideas for fashion retailers,” offers practical insights to do so, as well as the building blocks needed to start running creative and granular promotions.