Different Discount Strategies – Top Things To Consider
The online shopping trends are spiking at a drastic speed, and credits go to ease of shopping and huge discounts that are made available on significant events. In contrast, businesses are now using discounts as a tactic to increase sales funnel. According to some marketers, these discounting strategies might offer better results for a short-term basis, but the bottom line will hit rock bottom.
However, these issues can be resolved by creating a balance between the targeted audience for discounts and the frequency of discounts. In this article, we are talking about multiple techniques through which discounts can help in generating a higher number of sales. Also, we are reflecting on different options if some situations don’t call discounts as the right opportunity for the sales funnel.
The Right Time For Discounts
First of all, every business needs to understand that discounts aren’t suitable for everyone as they aren’t universal solutions. Some people use discounts to generate more sales while some people use discounts for enhancing the leads. No matter what your intent is, the discounts need to be used wisely. In other words, the discounts should comply with business goals.
For instance, there might be some businesses that are offering discounts to generate revenues, but in contrast, some businesses offer discounts to clear the inventory for a fresh batch of products. So, there might be different scenarios, and in the article below, we are talking about all potential possibilities. Have a look!
The New Visitors
The first time visitors might not be coming to your website to make a purchase, which means designing a discount code might not be the most suitable option out there. So, it is better to ask them to sign up for the magazine or newsletter by providing the email address. However, you can provide the discount code in exchange for the email address. While designing this campaign, keep in mind the following things;
- Add cookies for new visitor’s browsers to ensure only first-time visitors are getting the discount codes
- Always communicate that you are offering something exclusive to your new visitors as it enhances conversions
- Always give people a reason to opt for your discounts
However, if you don’t want to offer discounts to first-timers, you can provide a free subscription or company magazine in return to their email address.
Well, we all know the number of sales and discounts offered during the holidays, and even the shopping frequency and intensity enhances due to promotions. In other words, the shopper’s traffic is increased, and it is better to direct such huge traffic to the relevant discount pages and promotional products and services.
It is better to add a banner on the website through which potential shoppers can go directly on the sales page by clicking on the banner. In contrast, not everyone has to offer monetary discounts, right? Hence, you can offer free ideas or recipes to upscale the holiday season experience. All in all, free guides will work perfectly for the holiday’s season.
Every business has some customers that are always loading their carts whenever there is a new product, or simply, they are the regular shoppers. So, as a business, you need to have a loyalty club through which you offer discounts to loyal customers. In some instances, you can offer a discount when users purchase something worth a certain amount (i.e., offering a 10% discount if people buy two products at one time!)
According to stats, around 76% of online shoppers want packages, bundles, and promotions based on their shopping history. When you offer discounts, it will be a great way to offer a personalized experience. However, if you aren’t satisfied with offering discounts, you can offer free shipping.
The new product launch is always uncertain as businesses have insecurities if their new product range will be successful or not. So, in such instances, one can opt for early-bird discounts on new products and if you can, try to offer pre-ordering discounts. However, it is better to offer discounts that have higher perceived values.
Even more, if you want to increase and enhance the number of pre-orders, use the few items left tactic through which potential customers will be efficient in order because they will think how only fewer pieces are left to order.
The importance of referral marketing in the corporate sector is real, but the majority of businesses make the mistake of giving up on the development of referral systems. These systems imply the business’s regular customers to refer to the products and services. According to stats, 83% of customers are ready to refer to their business products and services.
However, you need to create a win-win situation for referral and referrer. Other than a discount, you can offer some new product samples or gifts when your loyal or regular customer refers someone to buy your product or service. This system is beneficial because 81% of customers will trust the referral by friends or family.
According to stats, 60% of online shoppers tend to give up on their carts because they see extra costs during the checkout. So, if you want to recover those customers, it is better to reduce those extra costs. However, add these discounts sparingly because if you don’t, people will start dumping their carts intentionally, just to get the discount.
In contrast, you can offer free shipping to everyone if they shop up to a certain limit (you can set the shopping limit) This is helpful because 24% of shoppers will get back to their shopping carts if they see there is free shipping. So, offer free shipping right away to retain and recover those 24% shoppers.
The Bottom Line
It is needless to say that everyone loves discounts while online shopping for obvious reasons. This is because discounts and promotions look exclusive or personal, leading to attraction from the potential customer. However, if you are looking for Amazon discounts or other discounts to ramp up online shopping, You can visit some trusted brands like Find Discounts. It has some amazing options!