Today is Cyber Monday! Likely the biggest shopping day for e-commerce retailers. Probably the day following the biggest weekend of the year for retail stores. Retailers of all kinds are probably selling more this time of year…but at what cost?

However, competing in a low-cost marketplace is dangerous and very few win. Just ask Wal-mart, who had thousands of workers walk out on Black Friday to protest low wages and limited benefits, or Amazon, who lost money for the first time in four years last quarter.

Marco Bertini – professor at London Business School – in an article recently posted in Harvard Business Review says, “A poorly-executed promotional campaign can ruin a brand, and a business just as easily as it can boost sales. And the holiday season exaggerates this threat because discounting has always been the retailer’s weapon of choice.”

Further, Bertini describes sales as something similar to a drug – immediate gains of running a sale or offering a discount are so strong and simple, but with every use, the sale must get bigger and better in order to achieve the same effect, fueling a downward spiral of deeper and more frequent price cuts.”

Finally, Bertini offers seven characteristics of a “smart promotion”:

1. It is a conversation-starter.

2. It is selective

3. It is contingent.

4. It enhances the brand.

5. It is exclusive.

6. It is robust.

7. It is disciplined.

For the full report and further suggestions on creating a “smart promotion” for your brand, be sure to read the entire article by Marco Bertini.

Happy Holidays and may your brand be more like a drug for your customers than your sales are!