How to Do Discount Marketing Properly? 5 Strategies to Help You Out!

How to Do Discount Marketing Properly? 5 Strategies to Help You Out!

Discount is one of the most frequently applied methods by sellers to boost sales, to the point where discount has been viewed as a marketing strategy and promotion action.

Yet, many sellers worry that using coupons and discounts may “spoil” the customers, especially those with lower profit margins, believing that too many discounts could have further reduced their revenue, or make their customers too reliant on coupons to check out at regular price.

Are you one of them too? Have you thought about that discount marketing may hurt your business? If the answer is affirmative, you are not doing discount marketing right!

Discount marketing, if handled properly, can be profitable and helpful to your business. Here are five discount marketing strategies to direct your customers into spending more with you and, more importantly, doing so happily.

1. Offering Discounts to the Products Hard to Sell

Every business has one of two immobile items that are comparably less favored and frequented by your customers.

You can’t remember how long they stay on your online shelf. Not only are they hard to sell, but they also reduce the chance you sell other more profitable products.

To get these hard-to-sell products out of shelf, coupons are one of the best tools. Offering coupons is less subtle than cutting down the price directly, yet it still allows your customers to reconsider and, preferably, decide that they can make such a deal given the reduced price.

Business often applies this discount marketing strategy to get rid of these poorly sold items and make room for better, more lucrative products.

2. With Discounts, Customers are Encouraged to Spend More

Coupons were used to boost sales. Coupon marketing can be presented in many forms, such as shipping thresholds, coupons or gift cards.

All of these marketing methods aim at encouraging customers to spend more, until the total amounts of their orders reach certain levels, where they can receive rewards.

For example, for the customers who planned to spend $5 in the first place, attracted by your previously set $5 off $20 worth of products or services, they would try very hard to reach that threshold.

Better is, even when the customers spend $15 more than they are supposed to, they are still doing it happily, and will continue to do so, as long as they think they are the ones gaining profits from you! 

3. Happier Customers Pay More Generously

Discount delights people, and this is scientifically proven. A study [1] found those receiving a $10 voucher enjoyed a 38% oxytocin level growth and reportedly were 11% happier than those receiving nothing.

Also, their respiration rates, heart rates, and perspiration all saw different levels of decrease, with lower stress and anxiety reported compared to the control group.

Offering discounts naturally makes your customers happy, and makes them pay more recklessly. Happier customers tend to spend more.

It is not just the discount itself that saves them a dime or two, but the idea they are treated specially that pleases your customers greatly and drives them into dividing into a deal headfirst.

If a little discount can generate such a great impact, then your discount marketing pays off handsomely.

4. Discount Marketing Converts New Customers

Converting new customers remains one of the biggest challenges, and discount marketing can help in this process.

If customers pay less the first time they try a brand, they are encouraged to place the order as they feel comfortable paying at a lower price.

Discount actually serves as invitation to buy from you. If they return, they would be likely to spend more with the familiar brand.

Offering a discount persuades the new customers from the risk-averse first-time group into the repurchased customer audience, thus increasing the possibility for them to spend handsomely.

5. Discount Marketing Retains Loyal Customers

Everyone knows “buy one get one free”, where customers either receive a discount on the second purchase or get it for free.

If a soap could offer some discount on bulk packages of three, the customers would be more inclined to buy the bulk package containing three soaps at once, instead of buying one at a time.

In doing discount marketing like this, you ensure your customer loyalty, while restricting them from visiting your competitors.

AllValue – Your Best Partner to Do the Discount Marketing

After reading the passage above, hopefully you are gaining more insights into discount marketing than before. But knowing is one thing, doing is another.

If you are wondering how to do it right, it is always recommended to start with a suitable eCommerce platform that facilitates your discount marketing.

Speaking of the suitable platform, AllValue has proven itself to be one of the top choices in discount marketing, as it supports:

• Percentage
• Automatic discount
• Free shipping
• Fix amount discount
• Gifts
• One card, one code

With these features and tools, all of which are indispensable in earning eCommerce customer loyalty, you are already winning in the first place by choosing AllValue as your trustworthy partner with professionalism and expertise.

 References:

[1] Spending More to Save More: The Impact of Coupons on Premium Priced Products

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