Who does not like to save money when they are out shopping? That is what makes deals like cash backs and discounts so attractive. In fact, there are multiple studies that prove consumers are more likely to buy something from a store that offers frequent sales even when the discount season is off. Yes, you heard me right! It seems like this is a fool-proof way to increase brand loyalty but discounts and sales do more than just that! Let’s take a look at some of the reasons why these are so famous when it comes to boosting businesses’ sales.
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- They are a sure way to attract new customers. Potential buyers love to explore discount coupons and promotional offers.
- Businesses can always tailor these to their benefit.
- Most businesses adjust sales and discounts with the purchase of a new product to market that product to customers by giving them an incentive to look into it.
- It provides an opportunity to create engaging marketing content that can connect your brand to the general population of buyers.
- Customers love to shop more when they feel like they are being “rewarded” for it.
- Coupon codes and promotional offers can easily be shared with a list of potential buyers or visitors through email IDs.
- Promotional schemes over a specific period make customers shopping time-sensitive. They understand that they have a limited window to purchase things at a discount, building an influx of purchases quickly.
What Kind of Customer Discounts Can You Offer?
You have got multiple options to go with here. For example, besides making purchases convenient with contactless payment and care credit at CVS, the store offers a combination of volume discount and buy one, get one free most frequently.
So to say, businesses don’t have to depend on one type of customer discount only. You can consider promotions through bundled discounts, prepayment discounts, volume discounts, free shipping, buy one get one free or seasonal discounts as it suits for you to attract organic traffic.
Other than that, your business can use the discount offers uniquely by presenting them to take care of a specific problem. Got a high rate of abandoned carts? Introduce a special offer in abandoned cart emails to bring back clients. Similarly, if you think your marketing has reached peak contacts and you are out of ways to bring new buyers to the business, look into referral offers. This is a great way to spread the word through your previous and reward them with something in return.
How To Ensure Profitability With Discount Pricing?
Promotional offers are all fun and exciting until you start to lose your profit margins. Now, this is the point that you need to be careful.
You are after all running a business and that requires earning profits to keep the operations going. Providing discounts can help you reach the target sales but the goal here is not to end world hunger or curb crimes all over the US so no one ends up with jail time by just giving out your products for free!
You have to devise discount strategies smartly. The first thing is to determine how much of a discount you can actually afford to keep profitable margins. You should also extend the promotional period to reach targeted sales only and no longer than that. Needless to say, the sales target should be high enough to provide you with reasonable profits. The bottom line is that you should not, in any case, damage your own business and earnings by promising something to the clients that you can not sustain in the long run or that will ruin your projected revenue for the year.
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The Bottom Line
Besides being a promotional marketing strategy, such offerings are a competitive advantage in the market as well. They can benefit your business and help retain customers in the long run. Moreover, when we say “discount”, it does not always have to mean a board with “50% sales” on. Now even the techniques to offer something like this to customers have evolved and you would find it in many different shapes and sizes.
For example, consider a buy now pay later scheme that many retailers now partner with. Let’s say Walmart accepts Afterpay but that is not a discount, you would think? Maybe not, but it provides potential customers something in exchange for their purchase here: convenience to pay in small installments. After all, discounts also help to make the payments easier on your pocket, right?