Lavish & Lime
www.lavishandlime.com
Lavish & Lime is a Canadian online retailer with a simple online catalogue. The design is fresh and easy to navigate. What makes Lavish & Lime particularly noteworthy is that they have become an early signer-upper of a "Name Your Price" service provided by a firm called Price Whispers. On the right hand side of the screenshot, the new service is right under the "Add to Cart" action button.
This is a neat idea to give consumers another purchase route. By letting a retailer know at what price a consumer would be prepared to make a purchase, the retailer gains some new information. How they act on that information would depend on a number of factors - item popularity, stock availability, discount implied, margin, etc but it is a new way of looking at pricing. As a launch retailer, Lavish & Lime probably gain some positive PR and attract some new customers, but beyond that, only time will tell if it works for the retailer. What criteria might be used to assess the scheme - rate of sale, average basket size, profile per customer, are some that come to mind, but perhaps other benefits will accrue such as higher email sign-up rates (or fewer opt-outs), less reliance on obvious deep discounting (which is generally communicated to all customers) and perhaps less reliance on couponing. So, overall, tactical discounting could net some nice gains to the bottom line.
When constructing a digital strategy, there are so many components to consider - channels to the customer, segmenting and targeing customers, managing propositions, managing campaigns, and so on. This potentially adds another variant to the mix. Keeping communications clear whilst engaging customers, turning browsers into buyers and improving overal marketing ROI are challenging. Only time will tell if this development makes that task easier or more difficult.
Posts
