Who doesn’t love discounts? We, humans, are simple creatures. If we see something that is at a discount or a lower price, we are tempted to buy it. And businesses across the world are aware of this. Therefore, they are implementing the best discount strategies to charm their customers. In 2020, 88 % of people used discount coupons for shopping.
If you are new in the business industry, it is normal to have the concern regarding the discount strategy. So, let’s understand how you can implement discounts without getting in the loss.
Understanding why discount strategies are important for your business will make it easier to implement them and get your desired revenue. Having discount offers have many benefits, such as:
- Attracting new customers
- Increasing customer loyalty
- Sales improvement
- Increase in online traffic
You can plan your discount offers according to your business niche, business size, and budget. Your goals should be relevant to your business. Here are the six types of discount offers you can use according to your preferences.
- Bundled discounts.
- Prepayment discount.
- Volume discount.
- Event/seasonal discounts.
- Free shipping.
- Buy one, get one free.
Now, you know the type and importance of discounts, let’s focus on how you can use these strategies.
Attract new customers with holiday sales
Holidays are the best time to get more customers. People are buying tons of gifts for their loved ones during this time, therefore they are more likely to go to the place where they find an amazing deal. According to Statista, in 2020, holiday retail sales were approximately $755.3 billion in the United States.
By offering deals during holidays, not only your existing customers will return, but you’ll attract new customers as well.
Use events to promote your product
Visit your local events like flea markets and local funfairs, or rent a shop there to promote your product. This way, you’ll expand your reach and gain more attraction. If you have a budget, offer free samples or distribute pamphlets to the people. It is one of the best tactics to create a buzz around your product and ensure that your customers will remember you after the event.
Influencer endorsement is the best way of using social proof to increase your conversion rate. You can offer a specific discount code for their followers and gain more reach.
Encourage large orders
Many websites offer free shipping and some percentage off after reaching a certain amount. This way, you can increase your average order value and increase your revenue.
Customer loyalty rewards
Starbucks has an amazing customer loyalty program. A customer loyalty program will ensure the repetition of your existing customers and earn their loyalty. For your new customers, you can offer a small reward or small discount on their next purchase. This way, you can turn your new customer into regular ones and earn their trust.
Create a thrill for new products
Sometimes it is hard to get customers’ attention towards your newly launched products. They may miss out on an invitation or skip it unknowingly on the website. To prevent this, offer an introductory discount for a limited time.
You can even send some free samples of your new product with a certain amount of purchase. But again, generating a buzz will get you more attention and increase your conversion rates.
Now we know the anatomy of the discount tactics, implement them in your monetizing strategies and improve your marketing game. With balanced planning, you can improve your conversion rate and boost sales.