How Discounts and Special Offers Can Work for Your Business?

ElitePersonalFinance
Last Update: February 6, 2021 Make Money

Every day in the marketplace, we can find many special pricing offers like discounts, buy-one-get-one-free promotions, packaging deals, loyalty schemes, and more.

These promotional activities have been proved to work very well. If your business is going through a dry patch, and you are not making use of discounts in your marketing strategies, it could be because you are excluding many potential customers from your business.

If this is indeed the case, it may be time to rethink your marketing and promotional plans.

Why Should You Use Promotions and Discounts?

If you have a business that depends on live traffic, you need customers inside your store. Food outlets, delicatessens, superstores, electrical goods, furnishings, and even car dealerships, are prime examples of businesses that need plenty of feet daily.

If you consider the lifetime value of a customer and the benefits you can reap from word-of-mouth advertising about good deals, then there will come a time when you will be faced with the decision whether or not to offer discounts, how often the offers should be made, and what the discounts should be worth.

If you are an online retailer, special offers and discounts could dramatically up your conversion rate, but there are some possible pros and cons to consider.

Pros for online retailers:

  • Increased customer acquisition.
  • Easy and quick to track and implement.
  • Higher sales conversions.
  • Increased customer loyalty is good to get many customers back.

Cons for online retailers:

  • Possible decreased margins and profitability.
  • If the discounts are not properly handled, there may be some brand damage.
  • If visitors to the site are inadvertently trained to wait for product sales, you could have lower sales outside of promotion periods.
  • You may only attract price-driven shoppers and fewer of those who are keen buyers.

Bear in mind that these pros and cons are mainly for online businesses and not for retailers who depend on live customer visits to their stores.

Examples of Offers You Could Employ to Promote Your Business

There are many types of discounts and promotions you will have at your disposal.

Here are just a few of the most common used by companies:

  • The best are percentage-based discounts. You can give small percentages like 5% or 10% off, or really drive sales by offering 20 to 25%, and perhaps even a larger discount to get rid of old stock, which is “dead” money.
  • A gift that comes after the client purchases some product is another great and proven working strategy. Shoppers always have their ears pricked to hear the word FREE and are happy to accept whatever is offered.
  • Online businesses also often increase their sales by offering free shipping and is mostly used in conjunction with a minimum order value.
  • Run a competition. Travel companies often run competitions which give the winner a free weekend away for two, and sometimes even for a family of four.
  • Your business could run a till slip competition and offer a hamper of groceries, bedding, a gas voucher for your car, or whatever you decide would be suitable.
  • Loyalty cards are trendy and have grown significantly over the past few years. Supermarkets and fast-foods give points for each purchase, which can be redeemed to pay for purchases when you have amassed a certain number of points. Companies like Starbucks and Nando make great use of Loyalty cards.
  • Gift cards are another fantastic way to make your customers buy more. It is an innovative and very effective way because the cards can only be used in a particular place.
  • A package deal may encourage people to spend more than they otherwise would. You can incorporate a group of products or services and sell them as a promotional package deal. This offer is popular with holiday companies who will include accommodation and flights in a package deal with saving for the customer.
  • The good old 2-for-the-price-one on certain menu items, on specific days, is a great way to fill up a fast-food outlet or restaurant with eager customers.

Offering discounts and promotional deals on purchases is a quick way to obtain more potential customers. Anytime you tell customers that they can save money, you will always get their attention. If you want the extra business, critically examine your marketing approach, and see whether you can make changes that will get your business booming beyond your expectations.

How Can Consumers Benefit from Discounts?

Consumers, such as the-man-in-street, are the rank-and-file who support the retail and online stores. Like all of us, they have the buying power and want to save more money on their purchases.

The way to do this is to seek bargain deals and money-saving promotions. Here are a few of the ways you can score some extra value when you purchase:

  • If you are buying on credit, take advantage of early-payment discount offers.
  • Take advantage of a good package deal instead of buying each item separately. You will end up paying less. This is especially true when dealing with travel and holiday companies.
  • If you buy a high-priced item, negotiate for free delivery. You will get it if you ask for it.
  • When you visit a store that offers a percentage-based discount, always remember to ask the percentage you will get, and make sure it is on the sales slip.
  • Sign up for loyalty cards at the stores or restaurants you frequent, and present them at the checkout so the cashier can load the earned points. You will be surprised at how quickly the points add up so redeemed in goods.
  • Purchase from a business that offers a manufacturer’s guarantee if you buy a high-end product such as a car, technology products like laptops, fancy phones, electrical goods, etc. Get it in writing, and if something goes wrong in the guarantee period, you will have recourse to a claim, instead of maybe personally bearing the cost of repairs or replacement.

Conclusion

There are many businesses out there, and everyone wants a slice of the cake, so there is always competition to give the best deals and the most innovative promotions.

A good marketing plan needs to be assessed regularly, and when necessary, improved and updated to adopt new ideas to stay in the race.

The prize is the customer, and the winners are the ones who get to the winning post first, more often than others do.

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