Are discounts really worth it, or do they increase short-term sales while lowering overall profits?<\/p>\n\n\n\n
Smart marketers know the importance of computing the lifetime value of a customer, rather than focusing on the one-time cost\/benefit ratio of a single transaction. It\u2019s even possible to build a business by giving something away.<\/p>\n\n\n\n
Here\u2019s a classic example: In 1888, Coca-Cola began issuing paper coupons that entitled the bearer to one free glass of \u201cGenuine Coca-Cola.\u201d Over the next 25 years, 8.5 million consumers took Coke up on that offer, and the legend we know today was born.<\/p>\n\n\n\n
The principle that you can build a business by giving something away has never been truer than in the Internet Age. Online shoppers are educated, discount-conscious, and extremely capable of comparing product offers across ecommerce and local stores.<\/p>\n\n\n\n
Online shoppers expect discounts, and recent research<\/a> shows the number of consumers who search for discount codes before making a purchase is rapidly on the rise. At The Good, we advise our clients to leverage that trend instead of cursing it.<\/p>\n\n\n\n Some say that offering discounts tells the customer your normal prices are too high. They maintain that presenting frequent discount opportunities will hurt the bottom line and lead buyers to expect more for less. <\/p>\n\n\n\n Retail giant JCPenney listened to that advice and tried backing off from their strategy of offering regular promotional discounts. Consequently, their sales dropped sharply.<\/p>\n\n\n\n JCPenney\u2019s experience<\/a> added credence to the point that consumers love bargain prices \u2013 even when the suggested retail price (MSRP), which the discount is based on, is an amount few customers ever pay. Browse to the JCPenney website on any given day, and it\u2019s fairly certain you\u2019ll see a discount banner like the one below.<\/p>\n\n\n\n Buyers want to feel like the price they paid was fair. Nobody relishes being taken advantage of. If getting a fair price feels good, though, getting a great price feels a whole lot better \u2013 especially when the buyer walks away feeling like a winner in the transaction.<\/p>\n\n\n\n Giving your customers what they want is the surest path to success in sales. Here\u2019s one caveat to providing sales discounts, though: always give the consumer a reason for the special price. Otherwise, they\u2019ll assume it\u2019s because you\u2019re charging too much in the first place.<\/p>\n\n\n\n Here are 78 ways to offer discounts to your customers \u2013 that\u2019s 78 ways to get more business. See which fit best for your business and test them. Chances are high you\u2019ll be pleasantly surprised at the results.<\/p>\n\n\n\n 1. Seasonal discounts:<\/strong> Summer is coming, and it\u2019s time to celebrate! Why not invite your customers to the party? Seasons give you four reasons each year to offer special prices on seasonal goods.<\/p>\n\n\n\n 2. End-of-season discounts: <\/strong>Hold it, though. Seasons have an ending as well as a beginning. That gives you four more reasons to offer special prices. When do end-of-summer discounts become fall discounts? Why not run them concurrently? After all, some goods and services are summer-related and others are perfect for autumn. Customers can stock up on goods for next summer while the prices are low, and get fall merchandise while the specials are running. Overstock takes the end-of-season discount to another level by also offering free shipping on all orders (see below). <\/p>\n\n\n\n 3. Pro deals:<\/strong> Let\u2019s say that some of your best customers are teachers, and they need certain supplies often. Why not entice them with a pro deal? One sure way to get on the good side of others is to make them feel special \u2013 to let them know you appreciate them and their business. Pro deals do that in a big way. Who are your industry professionals? Cater to them, because their voice will influence over their industry peers. Blick Art Materials offers discounts to both educators and students. They know that their products are heavily used by educational institutions, so they\u2019re capitalizing on that demand (see example below). <\/p>\n\n\n\n 4. Sponsorships:<\/strong> Now that you\u2019ve identified the teachers (for example) in your customer base, why not find out which associations they belong to and which conferences they attend? By taking your discount pricing beyond individuals and offering special pricing to a much larger audience, you can get your products and your offers in front of more people and get more sales. <\/p>\n\n\n\n 5. Incentives for reviews:<\/strong> Here’s a sales promotion idea. By offering a special discount to those who are willing to review your store, you get the best of both worlds: increased sales and additional social proof that you do what you say. Of course, you can\u2019t offer discounts only to those who leave favorable reviews. Here\u2019s how to handle good and bad reviews<\/a>. <\/p>\n\n\n\n 6. First purchase anniversary:<\/strong> Let your customers know you appreciate them by celebrating each year on the day they placed their first order with you. It\u2019s a great reason to offer a special discount on their next purchase, and it makes you a little more special to them. Keep going with milestone anniversaries: 5 years, 10 years, 25 years. Celebrate your fans, and they\u2019ll bring others to the fold. ASOS sends purchase anniversary emails to offer their loyal customers a 10 percent discount code (see example below). <\/p>\n\n\n\n 7. Other types of anniversaries:<\/strong> There are wedding anniversaries, birthdays, and other occasions to celebrate. Depending on your ecommerce offerings, you may even want to know the family dog\u2019s birthday. Hey, a party is a party, and parties are always a reason to buy something special. <\/p>\n\n\n\n 8. Co-marketing discounts: <\/strong>You don\u2019t carry everything everyone needs to buy. So why not strike up a relationship with other sellers for mutually beneficial promotions? Their customers get a special discount for becoming your customers too (and vice-versa). It\u2019s a win-win proposition that can draw more traffic to your website and help grow your bottom line. It also forges relationships that can lead to even more goodwill and promotional opportunities. <\/p>\n\n\n\n 9. Cart abandonment offer: <\/strong>This is sometimes accomplished via a pop-up while the shopper is still on your website, but even if that fails you can recover many would-have-been sales by sending an email to remind the prospect of the abandoned cart and adding in a special incentive for following through. The incentive can be an additional discount, free shipping, a trial membership\u2026 or any of a myriad other possibilities. The main thing is that your offer be seen as valuable and time-sensitive. SWAG Jeweller sends abandoned cart emails with a 5 percent discount code included. Not a bad way to improve your CTR on abandoned cart emails, and a great sales promotion idea.<\/p>\n\n\n\n <\/p>\n\n\n\n 10. Email list sign-up discount: <\/strong>Online marketers often proclaim that \u201cThe money is in the list.\u201d While your ecommerce website may not depend primarily on email marketing for business, there\u2019s little statistical doubt about the benefits of building and utilizing a healthy database of customers and prospective customers. Your email list is a valuable tool, so why not reward those who subscribe? You get to grow your list, the prospect gets a discount, and you\u2019re then likely to get an order. Life is good when both parties gain from the interaction.<\/p>\n\n\n\n 11. Point-based rewards discount: <\/strong>The more you buy, the closer you get to a reward. Does it work? Starbucks thinks so. The world\u2019s largest coffeehouse bumped their Starbucks Rewards program<\/a> up to a \u201cMore stars than ever\u201d system. Customers get rewarded for each dollar spent, and there are special ways (join the email list, for example) to get bonus stars. Not only that, but Starbucks teams up with other sellers for partner programs. Can you set up a Starbucks-type reward system for your ecommerce business? You bet you can.<\/p>\n\n\n\n 12. Upgrade discount: <\/strong>What do you do when your current model is no longer current? At Verizon, you just \u201cTrade in to trade up\u201d (see below). It\u2019s an excellent way for them to recycle phones and the practice gives customers just a little more reason to opt for a new smartphone. The trade-in value doesn\u2019t have to be high, it just needs to be substantial enough to add value. What upgrade possibilities do your products or services offer? Get creative. We\u2019ve even seen clothing stores offer trade-ins on evening gowns \u2013 then donate the used items as formalwear for those attending special needs events. The customer gets a discount. The store gets the sale, the goodwill, and a tax credit for their donation! <\/p>\n\n\n\n 13. Bundling discounts:<\/strong> Anyone buying a new printer is sure to need ink soon. Why not include an accessories discount? Another one of our sales promotion ideas is to combine go-together items. Pants come with a discount on belts, or snowshoes are matched up with a discount on gloves. Think a bit, and you\u2019ll see possibilities popping out everywhere.<\/p>\n\n\n\n 14. Membership discount: <\/strong>Offer special pricing for loyalty programs. Sam\u2019s Club and Costco work this angle to the bone. Maybe you don\u2019t want to lock your entire store down under a members-only agreement, but could you start a fishing club or an expectant mothers club? Here again, give it some thought and you may see opportunity to help your customers feel special and save money \u2013 the two things they want to do on a regular basis. Amazon Prime is a prime example of how to do membership discounting. Prime members get exclusive discounted prices on many high-demand items in the Amazon catalog. <\/p>\n\n\n\n 15. Frequent shopper discount: <\/strong>Cultivating fans and ambassadors is good for branding and good for sales. Whereas the point-based rewards program is based on the amount of purchase, the frequent shopper discount adds time to the equation. The more frequently your customers buy from you, the higher their rewards. Of course, you\u2019ll need their email addresses or cell phone numbers to make this work, so you\u2019re building your list at the same time. When you remind customers their 25% discount is going to expire in a week, they\u2019re likely to look hard for a way to use it before it goes away.<\/p>\n\n\n\n 16. Credit card discount: <\/strong>When you offer a store credit card (usually with a significant discount on sign-up), you get the customer\u2019s contact information and an excellent opportunity to build loyalty to your brand. You can leverage your cardholder mailing list to present special opportunities for additional savings, added services from you and your partners, and invitations to special events. Those who carry your credit card feel more a part of your ecommerce family. Both Amazon and Nordstrom work this angle heavily with great success.<\/p>\n\n\n\n 17. Buy more, save more: <\/strong>Bulk discounts are attractive to consumers and tend to increase the total order amount per transaction. Get creative with the presentation and test results. Would a \u201c4 for the price of 3\u201d offer generate more sales than \u201c25% off when you buy 4\u201d sale? One word of caution: Be careful with \u201cget one free\u201d language; it can make your legal staff shiver. If a consumer must purchase something to get something, then it\u2019s not \u201cfree.\u201d We often find they appreciate \u201cgift with purchase\u201d language better.<\/p>\n\n\n\n 18. Social follow for discount: <\/strong>Here\u2019s a way to increase your social media audience, open up a further avenue of contact for your clients, and boost sales all in one swoop. The technical end can get a little tricky, depending on the platforms and tools you employ, but this is a case where your \u201cask\u201d (follow us on social media) is usually well worth the reward (a money-saving discount). Here again, you can get creative and test different approaches.<\/p>\n\n\n\n 19. Social post for discount: <\/strong>The larger the reward, the higher you can raise the bar on your ask. Maybe you want respondents to follow you, share something about you on their social media account, and leave a comment. Which actions would most fit your marketing and social media strategy? <\/p>\n\n\n\n 20. Refer-a-friend discount: <\/strong>Here\u2019s a way to quickly grow both your mailing list and your sales. In exchange for introducing you to someone else who could benefit from your products or services, respondents get a discount. Variations might include targeting a specific item for the discount (Share your love of fishing and get 20% off the purchase of any Eagle Claw fishing rod within the next 30 days) or awarding a discount good for any item in your store. Did we say \u201ctest\u201d yet? Each special you run can tell you more about your audience and their preferences, but only if you remember to test and test again.<\/p>\n\n\n\n 21. Affiliate discounts: <\/strong>These can range from an Amazon-style commission on orders generated by links from Amazon Associates, to tallying up the number of new customers referred by champions of your brand and providing rewards based on the number of referrals. Affiliate programs are one of our favorite sales promotions ideas, and can help lower advertising costs and enable you to reach a wider audience.<\/p>\n\n\n\n 22. Auto-ship:<\/strong> There are two ways to go about auto-ship. One often comes across as sneaky and is certain to create resentment. The other is upfront and builds long-term loyalty. We suggest the latter. When the customer is totally aware that the discount is based on agreeing to receive further shipments automatically, and when instructions for how to end the agreement (and whether there is any penalty for doing so) are easy to access, auto-ship arrangements can be a win-win proposition.<\/p>\n\n\n\n 23. Pre-order discount: <\/strong>Here\u2019s a way to secure sales even before a new product is ready to ship. Not only do pre-orders allow customers to be \u201cfirst in line,\u201d they build excitement and add value. If something is so highly desired that people have to place an early order to be sure and get it before it sells out, that product must be amazing\u2026 right? Like layaway programs that allow customers to fix the price now and pay later, pre-order discounts can help you get orders that might otherwise have been lost. Here\u2019s a good maxim for increasing ecommerce sales: If the customer wants to buy now, let her do it. Now.<\/p>\n\n\n\n 24. Back-order discount: <\/strong>The customer wants to order a product you don\u2019t have in stock. Rather than lose the sale, why not offer a back-order discount? In exchange for the buyer\u2019s willingness to wait (spell out how long that wait will be), you offer a price break. They pay now. You deliver when the item is back in stock. A small discount can save the sale.<\/p>\n\n\n\n 25. First time shopper discount: <\/strong>You\u2019ve computed the average lifetime value of a customer, right? Take that into consideration here. By offering an attractive discount on the first order (which includes getting on your mailing list), you\u2019ve done more than make one sale; you\u2019ve gained another customer. And the potential value of that customer to your business is way more than the value of the first order. Way more.<\/p>\n\n\n\n 26. Influencer discount: <\/strong>There are celebrities in every niche \u2013 people whose advice others readily accept. Ecommerce sites can see significant bumps in sales when those niche-centered thought leaders recommend their products. Add a special discount to the mix and the results can be spectacular. The first step is to identify the influencers most germane to your niche. After that, it\u2019s a matter of initiating contact and establishing a relationship. Once you\u2019re able to illustrate how your products or services are valuable to the influencer\u2019s audience, the next step is evident: let them know how to access your website. Instagram has become a great place for brands to partner with influencers to offer a discount on specific products. Both the influencer and brand profit from this type of partnership. <\/p>\n\n\n\n 27. Re-engagement offers: <\/strong>Life happens. Situations change. Your customer base is constantly in flux. You work hard to earn those customers, though, so don\u2019t let them drop off the radar without doing what you can to get them re-engaged. You\u2019ll need to determine the criteria that best fits your business, but it can be as simple as getting in touch with those who haven\u2019t ordered in a set period of time, letting them know you haven\u2019t forgotten about them, and offering a special discount for their next order. Goodwill is a good thing.<\/p>\n\n\n\n 28. Behavior-based offers: <\/strong>Standard pop-up ads triggered by user actions (closing a page, for instance) are often seen as annoying. They\u2019re about as likely to dissuade a visitor from coming back as they are to save a sale. Special offers based on machine-learned observations about the visitor, though, can appear more helpful, timelier, and less intrusive. Check Smart Exit Offers app<\/a> in the Shopify app store for an example of how smart offers can work.<\/p>\n\n\n\n 29. Subscription discounts: <\/strong>The customer agrees to a set number of purchases over a certain period of time in return for a discounted price. Consider how Amazon leverages subscription discounts on their Audible.com site. Does your inventory include consumable items or services the customer will want to purchase on a regular basis? A subscription discount can keep them coming back to you.<\/p>\n\n\n\nUsed wisely, promotional discounts can help boost sales and ROI<\/strong><\/h2>\n\n\n\n
![\"JCPenny](\"https:\/\/thegood.com\/wp-content\/uploads\/image18-2-1024x328.png\")
<\/figure>\n\n\n\n78 Ecommerce Sales Promotion Ideas You Can Use to Boost Revenue<\/strong><\/h2>\n\n\n\n
![\"Overstock](\"https:\/\/thegood.com\/wp-content\/uploads\/image3-4-1024x583.png\")
<\/figure>\n\n\n\n![\"Blick](\"https:\/\/thegood.com\/wp-content\/uploads\/image5-3.png\")
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<\/figure>\n\n\n\n![\"Verizon](\"https:\/\/thegood.com\/wp-content\/uploads\/image9-3.png\")
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<\/figure>\n\n\n\n![\"Nordstrom](\"https:\/\/thegood.com\/wp-content\/uploads\/image8-2.png\")
<\/figure>\n\n\n\n![\"Influencer](\"https:\/\/thegood.com\/wp-content\/uploads\/image14-1-1024x666.png\")
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