Everybody loves getting a good deal. For customers, shopping deals and sales have become commonplace. Customers now expect to see discounts around holidays, specific events, or times of the year.
Discounts are an effective way to attract new customers and encourage sales of specific items or purchasing in general. So how do you know what type of discount to offer, or what strategy to use? Can you ensure your discount offers are successful for you and your customers?
Read more about the different types of discounts and how to employ a discount or sales strategy that’s right for your brand.
Why We Love Discounts
Part of the nature of business is that it’s competitive. In a capitalist society, businesses are expected to compete for customers – this is a way to give customers options and keep the economy healthy and robust.
Discounts have long been a way to encourage shopping to patronize your business instead of a competing business. From haggling to price matching to coupons, offering a discount has always been part of a competitive business strategy.
The first official “coupon” was offered in 1887 by Coca-Cola. The idea of Black Friday Sales date back to the 1960s. President’s Day Sales also took off in the 1960s, when the holiday was moved to a Monday and created a long weekend. Now, sales are present around most holiday weekends, and stores typically offer sale or clearance items year round because they’ve proven beneficial to both business and customer.
Particularly during the holiday season, discounts can provide huge benefits for businesses. With so many people shopping during this time of the year, offering a discount is a great way to bring in new customers, get rewards program signups, and build brand loyalty.y
Reasons for offering a discount might include:
- Finding or attracting new customers
- Capitalizing on increased traffic (due to holidays or another cultural event)
- Launching new products
- Promoting a current product
- Incentivizing people to buy products you have too much of
- Reducing abandoned shopping carts during online shopping
Remember, the priority of any discount is to get sales. The discounts you offer should always align with your business goals and overall brand strategy.
Discount Types
Creative discount ideas are the best way to offer a discount, and you have to keep a few things in mind:
- The platform(s) on which you plan to offer the discount
- Your target audience
- The rules of the sale (length, terms, etc) and how you plan to make them clear.
With all that in mind, here are some class ideas for modern that can help jumpstart your own brilliant plan.
- Coupons: Coupons are not just cutouts from grocery store flyers anymore. A coupon can be added directly in your shopping cart while making an online purchase, automatically or manually. Coupons are a great way to incentivize purchases and additional spending, especially if they are set to expire soon.
- BOGO: BOGOs are super popular for a reason. When presented right, BOGOs are incredibly appealing. And they don’t have to be a "buy one get one FREE." BOGOs can be "buy one, get one at a discount." This is a great option if you have a product where people would benefit from buying multiple items at once.
- Rewards Trial: Do you have a rewards program? Try offering a timed discount for new reards members. This will encourage reward signups and spending
- Referrals: Have a high-value item and want to spread the word? You can offer a referral discount. Bonus points if you offer a discount to both the referrer and the referred, and get the sell-through on both.
- Bundles: Electronics, clothes, and more can typically do well with bundling deals. They’re great for you because you get more products out the door, and customers can get a curated experience and feel connected to your brand.
When you offer a discount, you have the opportunity to make a lasting impression and build a loyal customer base. Make sure you align your discount plan with your business's goals and have fun creating an offer you can be proud of. Contact us now to find out how we can help.
