Discounting may not seem like a profitable option but it certainly can set things right for your business. It only requires a bit of customer knowledge and data analysis. When you plan ahead for your discounts with the help of existing discount strategies, you can make sure they are profitable and successful.
As an e-commerce business selling your products online is a price-sensitive issue. You need to pick the right price to reach the right audience. Of course, the work is not done since you may need to boost your business with planned discounts. Before you start with your discounts we advise you to try other methods to boost your sales and profits. Afterward, you can move on to discounts.
Discounting can be done in several ways. It can be a percentage discount on your product or a cash amount discount. Another way is to provide the product on a fixed price which is reduced. When you discount it is important to present the offer in a good way. People should feel like they are buying your products at bargain prices. This can be achieved through the right call-to-action sentences and well-structured offers.
Phrases like “spend over $50 and get free delivery” or “use our discount code XDISCOUNT and get %30 off on your entire order” are good examples that clearly explain your offer. Your e-commerce platform will provide you with such offer building where you can control the conditions. Many e-commerce platforms do. You will be able to tailor your discount offers in a way that will maximize your profits. Here are a few types of discounts to try:
- Buy one get one for free!
- Free delivery
- Cash amount or percentage discounts
- Multi-buy offers (if you buy two products together they cost less than their separate purchasing price)
- Volume-based discounts (more favorable for B2B customers)
- Gifts over a certain order value
When you start using discounts it is important to decide on when you will offer them or who will you offer them to. You may decide to have a discount for your general customers to increase the sales volume. Or, you may send a discount coupon to cart abandoners who need a bit of encouragement to come back. You can use the discounts for your loyal customers who will be glad to be rewarded. You can discount on different platforms as well. If your online vendor on Shopify is getting no turnouts while your online retailing website does, you can have different prices for each to gain more customers on both platforms.
After you decide on your discount strategies the last important step will be announcing your discounts. You may use social media and target your custom audiences if needed. You can mention your discounts through e-mails or weekly subscription-based catalogs. You can mention it on your website through banners, retargeting ads etc. You can utilize your YouTube account or other accounts that can share your video content that provides information regarding the discounts. There are no limits at this point.
All in all, remember that discount strategies should not be implemented randomly. They should have a goal, an audience to affect and certain conditions along the way. There is a structure in its presentation and it can be utilized according to a different set of audiences.