Running a promotion or discount is the most powerful and widely-used method of driving sales. According to one Software Advice study, offering discounts is the leading pricing strategy used by retailers across industries and sectors. About 97% of the respondents in the survey claimed to use discount strategies.
However, slashing prices can be as harmful as it is beneficial. While discounted rates attract more customers, the wrong execution can kill your profits or draw the wrong crowd. This could be freeloaders or people who only purchase your products when they are on sale. Thus, if you are going to implement a discount strategy, you should plan each promotion and think your offers through. Make sure every promotion works towards meeting your business goals.
Here are some proven discount strategies that will build your brand without hurting profits or sales.
Proven Discount Strategies For Your Business:
1. First-time visitor offers:
When consumers enter your site for the first time, they are probably not ready to make purchases just yet. Offering a discount on their first purchase might not drive them to buy right away. What works better at this step of the consumer journey is a small commitment, to begin with. For example, offer them a discount code as a tradeoff for their personal data, like their email address.
When you create a discount campaign targeted at new buyers, keep the following things in mind:
- Choose a particular segment in your audience: Add cookies to the browsers that new visitors use to reach your site. This lets you track whether a visitor is new or returning. This way, you can choose what each of these segments sees when they reach your site.
- Personalise your message: Ensure your target audience understands that this offer is exclusively for them. This way, your message is more relevant and helps increase conversions.
- Give buyers a reason behind the discount: Everyone knows that nothing is free. If people are going to accept your offer, they need a reason. Whether it’s a clear one or not, people like having reasons for doing what they do. In this case, users know that the discount is for them because they are visiting the website for the first time.
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2. Reward loyal buyers:
Most leading brands have a loyal customer club for exclusive deals and offers. The goal of this club is to reward and retain customers who shop for sizable orders or shop regularly. When the customer spends a predetermined amount on your site, you can offer them a discount for their next purchase. Reports have shown that about 76% of buyers like offers personalised based on their past purchases. Thus, a reward based on their previous transaction resonates better with them. Take this example: Marks and Spencer gives a promo code to all loyal customers that purchase products above a certain amount which they can use to get a free product.
3. Partner with Coupon Sites in India:
Several platforms out there offer discounts and deals for multiple brands and products. This way brand loyalists can get their favourite products at discounted rates without this sale affecting the brand’s market image. Gorilla Coupon is India’s leading coupon platform that gives you the best deals and discounts on top brands. You can choose from platforms like Myntra, Amazon, Flipkart, Ajio, Tata Cliq and many more. Get the best prices on high-quality products from over 100 leading stores in India.
But that’s not all! With Gorilla Coupon, you also get assured cashback on every coupon code you use. As a part of a long-term program, Gorilla Coupon gives customers assured real-world cashback on every purchase. You can easily transfer this cashback to your bank account, mobile wallet or PayPal account. Thus, when you shop with Gorilla Coupon codes, you can spend, earn and save – all in one transaction.
4. Push deals during holidays and festivals:
Every country has a particular time when people throng to stores more than the rest of the year. In India, this is from November to December. Take advantage of this organic traffic and incentivise consumers to choose your products over the others in the market. In the US, Black Friday sales are a big success. In India, Diwali sales dominate the market.
With the right discount strategy and execution, you can maximise profitability without impacting your brand.