Some online retailers think that it is not helpful to offer their clients various discounts because it can’t increase the whole profit. But they have a wrong opinion about it. Developing a well-thought-out plan, you can attract more people to purchase your goods and thus grow your revenue.
However, it’s not as easy as it looks at first glance. Creating an effective discount pricing plan is an art. The reason is that you should use discounts and organize everything in such a way that you will not lose your profits. That’s why we prepare for you the list of the best discount strategies with the help of which you can master it. Let’s start!
1. Don’t apply a lot of discounts
The first thing which you must consider before launching your discount program is that there is no need for applying too many discounts. Naturally, your sales will increase, but at the same time, you will damage the reputation and brand of your company. Customers may doubt in the quality of your products. Think of using discounts wisely and carefully in order not to scare off your clients.
2. Choose the types of discounts you want to apply
Generally, we may divide discounts into three types:
- selling products with a fixed, reduced price;
- offering a cash amount discount on products;
- making a percentage discount on products.
Besides, you can also set up the discount’s conditions. There are also a lot of discount strategies which are connected with it. For example, offer your clients free delivery: either as for the first time or if they spend a certain sum of money on the purchases.
Another effective strategy is applying combination offers. It means that if your client buys some products together from a selected range, he will get a new smaller price for it. Moreover, some retailers also offer discounts on the next purchase or free gift if their customers buy goods above certain spend.
3. Reward your customers with discounts
It is also a great idea to use discounts as rewards because you will not only attract new users but also retain existing ones. The examples of such rewards are giving the customer some discount on the next purchase if he shares your posts with his friends on various social media networks/invite five friends/renew his membership. And in the future, you will see that the money which was spent on these discounts is worth it.
4. Use discount coupons
There are a lot of benefits in issuing discount codes for online retailers. First of all, with the help of it, you will bring in more new customers without any doubt. Secondly, such a coupon is an excellent opportunity to offload the excess stock of your online store. The scheme is simple: your customers share the discount codes with their friends, and they also become your customers. And you get what you want: both clients and getting rid of the excess stock. Thirdly, it can be a good promotion of products which were launched lately and services which haven’t been used yet. And finally, you will get the loyalty and value of your customers.
5. Motivate your customers to return to their abandoned baskets
Today the problem with abandoned baskets is very widespread in eCommerce business. But don’t worry it is easy to solve it. Everything you need is to send an email where you offer a good discount or another incentive, and you will see that it works. In that way, you show the clients that you appreciate them and, together with it, boost your sales.
6. Let your customers know about the discount terms
You should make the discount terms as transparent as possible because it is very significant for getting maximum effect on sales. Don’t lie to your customers. If you promise them discounts, fulfill this promise. And it is also good when you show this discount on view during the process of purchasing products. Customers will appreciate it better.
To sum it up, there are different kinds of discounts. But it doesn’t matter what you will choose because if you use them incorrectly, you will gain no benefits. It depends on you whether discounting work for you or against you. So, follow our tips and sell successfully!