Discount is a way to attract more customers to your business and incentivize them to make a purchase. Discount strategies are very effective to grow more new customers and add them to the customer journey.
Offering a discount is not as easy as it seems. Sometimes businesses offer discounts on all their products, which may attract more customers, but this often affects the business’s bottom line. Offering discounts should be a balance between which segment you are offering the discount to and at what stage they are in the buyer journey.
This article will look at discounts as a source of incentivization for customers and how it creates more sales.
When to offer discounts?
Discounts should not be offered to everyone that visits your business. In the digital world, discounts can incentivize customer visits depending on their buyer journey or get more leads into your sales pipeline.
Let’s take a look at 8 discount strategies that businesses can use to grow their sales.
1. As a way to attract new visitors to your sales pipeline
Not every visitor who enters your website is ready to buy. That’s why a discount can be a key factor in collecting lead data from these visitors and add it to your funnel marketing.
You can capture leads of these visitors by nudging them to fill up their email addresses and phone number in exchange for a discount code.
Here’s how you can capture leads with a discount code.
• Target a specific segment
The best way to target a new visitor for your website is to check if the customer has cookies from your site. First-time visitors may not have cookies as they have not visited your site yet. The success of a discount strategy depends on the targeting you do for your customers.
First-time visitors are likely to spend more time on your website if a discount is offered.
• Create relevant content
Customers like to feel special. Personalize the content when offering a discount code so that customers know that this discount is exclusively for them.
• Promote a reason for your discount
Customers like to know the reason why they receive a discount. People feel that the discount is more relevant to them when there is a reason for you to offer them the discount. You can use discounts like clearance sales, seasonal sales, first-time buyer sales, etc.
2. Use discounts as a reward
Discounts can be used as a way to reward loyal customers who buy from your website often. You can also have discounts that give people a percentage off when they make a purchase of a fixed amount on your website. A recent study shows that 76% of customers looked for personalized discounts based on their purchase history. A point-based reward system works best in this case.
3. Introduce holiday sales
People tend to buy more during the seasonal holidays. People shop for gifts and new items for themselves during a holiday sale. Christmas, Black Friday, Diwali, and Eid sales are just some examples of holiday sales.
4. Offer early bird Discounts
Early bird discounts are popular for newly launched websites or a website that has new stock in store. An early-bird discount goes to those who make the first few purchases on a website. Early bird discounts offer a nudge to buyers who come to your website for the first time and offer a reward for shopping on that site.
5. Abandoned carts discounts
A recent study shows that 60% of shoppers abandon their cart before checking out. An abandoned cart discount can help combat this by offering a discount just before customers abandon their cart. An abandoned cart discount can be a pop-up that reminds customers that they are abandoning their cart and missing out on a great discount.
6. Reward referrals
Referral codes are one of the easiest ways to increase the number of people who are recommending your store to friends and family. You can offer a discount code or cash reward to those customers who recommend your business.
A study found that 83% of satisfied customers are willing to recommend your business. By offering a referral discount these customers can get more people to try your business through word of mouth.
7. Retarget visitors with discounts and offers
Target people who have come to your business and left behind their data. Retargeting customers on numerous channels on the internet can help your business get more customers who are familiar with your brand. Create a personalized message to retarget customers to come back to your store. You can rely on Facebook ads, Google ads, and more to retarget customers who have come to your business and not made a purchase.
8. Subscription discounts
Lure one-time shoppers to your business with a subscription for your products that make them long-term customers. Subscriptions offer convenience to customers looking to shop for something new every month.
You can offer a discount to those people who subscribe to your website. This will incentivize them to purchase a subscription instead of making a one-time purchase. After a customer has subscribed to your website or product you can offer another discount to incentivize them to upgrade their one-month subscription into an annual subscription.
So what do you think of this read? Write us down your views in the comment section and let us know if you know of any more discounting strategies that helped you in growing your customers and business.