Quantity Price Breaks

7 Ways to Make The Best Out Of Discounts Without Impacting Your Store (part 2)

Moving on to part 2 we are going to talk about the last 3 steps to use discounts correctly. 


5. Personalize your promotion and discount

Someone who already bought your product doesn’t need to be notified you are running a discount. You also might want to send different promotions to different people. For example, if a customer has been on your email list for a year and never purchased anything, you might want to send them a really juicy offer to get them to buy. Someone who just signed up for your list doesn’t need the same type of offer. 

6. Do smaller targeted promotions

You only want to do big public promotions a few times per year, or else you train your customers to wait for a discount to purchase. However, you can still run smaller, targeted promotions in between the larger ones.

If you have segmented your email list, you have customers in different phases of the buying cycle. You can do a promotion only for a certain segment, and send it to only them. Here are a few examples:

  • Run a webinar and then send a discount only to webinar attendees.
  • Email cold subscribers, or people who have cancelled with a really juicy offer to win them back.
  • Do a promotion with a partner, offer a discount only to their audience.

Another idea is to discount a complementary product or service to go along with your main offering. If you normally charge $99 for a setup, give it away free or heavily discounted with a purchase for a limited time.

These smaller promotions are a great time to try something more creative than a straight discount. Offer 2 months free, we pay the tax, or free setup for a limited time. You can also include bonus items such as a complementary product, ebook, or unlocking an extra product feature. 

Here’s an example of a free gift bonus from Clinique:

7. Use discount as a gateway to other products

Your customers have a lifetime value. If you know how to calculate LTV, you can determine how much you can afford to lose on the first purchase and still profit in the long run. Have you heard of a loss leader? It’s a product sold at a loss to attract customers into a store.

For example, supermarkets will sell items such as milk and eggs at less than they purchased them for to attract customers to their store. Even though they lose money on those items, they bank on customers purchasing other items such as potato chips and beer which more than make up for the loss.

If you sell multiple products, you can use a discounted item as a loss leader to get customers to buy other things from your store. Some companies do this to introduce customers to their brand, and they bank on keeping them around long enough to make a profit. For example, some companies sell a piece of software at a break-even price, then give the customer great service. A few months later, they introduce the customer to other products they sell, and make profit from those. In this way the discount is seen as the cost of customer acquisition, not an actual loss of profit.

It’s not the discount itself that cheapens your brand, it’s the way you use the discount. When used the right way, discounts can add to your bottom line in a sustainable way, without devaluing your core products.

4 Ways to Make The Best Out Of Discounts Without Impacting Your Store (part 1)

Do you think discounts somehow hurt your brand? 

Well, it varies between people's perspectives. It’s no secret that discounts and promotions bring in more sales, but is it a good long term strategy or a cheap trick?

In this post, we are going to discuss 4 ways to increase revenue and not hurt your brand at the same time while promoting your sales.


1. Never use discounts out of laziness

 It may sound offensive to some retailers but don’t offer a discount to sign up for your email list or newsletter. Why so? Because there is no value beyond the coupon, customers don’t know what emails they will receive or why should they care. Also people are much more likely to unsubscribe.

You’ll probably get a lot of signups but we are talking about how to keep the brand name intact and create long-term value. Instead you should be telling your potential shoppers with tons of value by being on your list. Offering valuable content that is related to your product will get you more targeted subscribers that are interested in your topic and build your brand awareness at the same time. For example, Neil Patel makes a very enticing offer on his website


2. Plan ahead and know your slow times of year.

 If you’ve been selling products for a while, you know that there are certain times of the year that are slow. These are the times when you need to boost your sales, so plan for this ahead of time.  Things are usually slow when people are not in front of their computers. There’s a reason you see a lot of holiday sales, it’s because advertisers are trying to give people a reason to get to their computer and buy. Slow times will differ based on your industry, but for me it is generally around the holidays, and the summer. Sales ramp up from January to May, then are really slow from June to August, then ramp up again from September to December. There is a bit of a lull over the holidays, then you start over again in January. 

Amazon is trying to make Prime Day bigger than Black Friday, and they purposely made it in the middle of July.


3. Do 4 major promos per year

 Running a promotion every 3 months or so gives you time to build up a back-log of people who are still deciding if they want to purchase or not. A discount gives them a reason to purchase now, instead of waiting, and maybe never purchasing at all. Instead of spacing them out exactly every 3 months, try to hit the slow times. For example, I know I am going to be slow during the summer, so I plan a sale at the beginning and end to help keep profits steady. I run a sale during Black Friday/Cyber Monday, and we usually get double our normal sales. Christmas/New Year’s is a good time for a holiday sale, and there you have 4 major promotions.

4. Promote your promotion

Your promotion isn’t going to work if no one knows about it. Email your list at least twice for a major promo, or even 3-4 times if you think your audience won’t be too annoyed. Send one email to announce the sale, then at least one more when the sale is about to end. You will get most of your sales towards the end, so make sure you send a “last chance” email. 

You’ll also want to schedule social media posts to announce the promotion, send out several posts over the course of the sale, but try not to get too spammy. Create a nice graphic like the one below from Pinterest that you can use when sharing to attract even more attention.

A Scientific Approach: Why do Discounts Appeal to the Human Psyche?

If presented with the three options below, which do you think would yield the most?

  1. A ring from $75 marked down to $25
  2. Get a shirt for $80 and take the second one at $50% off
  3. Save $400 on a TV at $1,999

How to optimize Shopify sales using discount strategies

According to a research conducted by PriValEdge, companies that apply good discount rules can see a 5% increase in volumes and 60% increase in profit. With the help of Quantity Price Breaks  e-sellers use time-limited discount on products to trigger motivation and human's sense of urgency, if clients don’t purchase at the discounted price, they might miss out on saving money if they hesitate and buy it later.

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