“Discount” is an essential part of retail. Moreover, the buyer is already so accustomed to them that he practically does not buy goods that do not have discounts. This article deals with all the questions about applying discounts: whether to offer discounts when to offer them, what type of discounts should be applied. What are the pros and cons of discount shares for e-commerce, as well as a number of effective reasons for using discounts to increase conversion?
Providing discounts can become a powerful weapon in the conversion arsenal of your online store. However, if discounts are used indiscriminately, you can cause significant damage to your brand – or make trade unprofitable.
Before You Start Offering Discount, It Is Important To Formulate Your Brand Philosophy
If you want to position yourself as a luxury brand – or if you have a low margin trade at this stage (the markup is the lowest possible) – then you’d better increase customer loyalty in other, non-convertible ways.
But if you have healthy margins according to eCommerce dashboard that sometimes allow you to apply deep discounting and daily sales flow – discounts can significantly accelerate the achievement of your business goals.
There Are Several Common Types Of Discounts And Offers:
Percentage discounts are the most popular way. It can be a small incentive interest (5%, 10%, 15%), a decent discount (20%, 25%, 30%) and a sale, for example, to eliminate a product that is not moving or aging. (40%, 50% and more).
Discount in absolute values (in monetary value). Discounts in monetary value can be given as a gift. This makes people feel that they are losing this money – if they do not buy a discounted item before the end of the promotion. In the U.S. there is a Rule 100: if an item costs up to $100, it is more effective to use the percentage discount, if the item is more expensive, then the discount in a fixed amount is louder. This psychological trigger can be formulated in other countries – with a different value limit.
It’s a free additional service. Free shipping is often mentioned as the number one reason for the buyer to throw a filled basket. Offering free shipping is a great way to increase conversion rates. Use free services such as delivery or installation and connection, combined with a minimum purchase amount – to increase the average check.
Free Gift – a free product to purchase can be a great way to provide additional value to the customer. It can also be used to increase the average check, to get rid of a product that is not in demand.
There are dozens of reasons to use discounts to attract customers. Let’s look at some of the most popular ones:
1. Monthly Discounts On The Same Day (Or Several Days)
It is a traditional system used to increase sales and attract regular customers. Regular sales, on the last day of the month, is a great way to increase conversion.
2. Pre-Start Discounts (Discounts To First Customers)
If you are still in the pre-start phase, it is appropriate to advertise discounts to the first customers in advance – to increase the primary traffic, to arouse interest in the new brand.
3. Holiday Discounts
As you know, Black Friday and any holidays, on which every customer buys a lot of gifts or preparing meals – good to use to attract customers discounts.
4. Discounts For Returning To The Abandoned Basket.
As you know, up to 70% of people throw filled baskets. Discount for the return to an abandoned basket with the order – gives the opportunity to make a lot of sales.
5. Discounts For Subscription To The Mailing List
By providing a discount in exchange for the visitors’ email address, you not only increase the probability of conversion – but also get the opportunity to offer new discounts in the future.
6. Discounts For Social Network “Friendship” With You (Liking, Following, Sharing)
Providing visitors and customers with a discount incentive to share a page of an online store with their social circles – can be an effective way of sundress marketing.
7. Discounts For A Recommendation To A Friend
Even more promising marketing direction. People buy from you much more often if you are recommended by a friend or a family member. Take advantage of this and use discounts to encourage recommendations.
8. Discounts On First Purchase.
Providing a good first-purchase discount effectively encourages the visitor to become a buyer.
9. Discounts For Reaching A Certain Order Amount
A strategic way to find out the best value for such a discount (which is especially often used for free delivery) is to calculate the average bill for the previous few months. Then you can offer a discount or free delivery for an order that exceeds the average check by 10%-20%.
You can also offer discounts on cross-sell – buying another closely related product (accessory) in the set with the customer’s chosen one.
10. Exclusive Discounts Iin Personal Message In Social Networks
Large exclusive discounts personally to the Followers and brands of your social media pages – so that the client can check with his friends and make sure that the discount today was not received by all, and he alone – can be a great way to establish close relationships with customers.