Discount strategies play a crucial role in decision-making as they create a sense of value, urgency, and reward for customers. If your product and service are of equal quality to your competitors, your exclusive price becomes a competitive advantage in winning customers. That’s why discounts are what often seals deals and convert visitors. This catch has been driving one-time purchases and building long-term customer loyalty for ages, so don’t underestimate it. If you’re looking for new ideas, our team prepared a list of 21 solid discount strategies for online retailers to win customers and grow sales.
Top Discount Strategies to Win Customers
First Purchase Discount
This pricing strategy is designed to provide compelling benefits for customers to make their initial purchase from a particular store. This strategy often involves offering a discount in exchange for the customer’s decision to buy from the store for the first time.
Utilize methods like coupons or flyers to communicate the offer effectively. For instance, entice customers with a deal: “Receive a discount on our top-selling products when you make your first purchase, and enjoy a bonus pair of free Christmas socks.”
The “Only Today” discount pricing strategy is a fleeting opportunity, valid for just a single day. This ultra-short-term approach creates a sense of urgency that can significantly boost sales.
Implement this strategy for special occasions or spontaneous promotions. The limited-time nature of the discount triggers a sense of urgency, motivating customers to act swiftly to secure the exclusive one-day offer.
This discount strategy adds a time-sensitive layer to your promotions. It kicks off with the maximum discount on the first day, gradually decreasing each subsequent day. Picture this: a tempting 50% on day one, followed by 40%, 30%, 20%, and a final sizzling 10% on the last day of the promotion.
Early birds enjoy the highest savings, encouraging first-time clients to swiftly make their shopping decisions before the discounts gradually decrease. On average, businesses employing this strategy observe a 35% increase in sales during the promotional period. The urgency created by the diminishing discounts prompts quick decision-making, fostering an environment where customers are motivated to capitalize on the maximum savings available in the initial days of the promotion.
Eventual discount is one of the most wide-spread discount strategies. It revolves around offering special discounts in honor of holidays or significant events. This approach taps into the celebratory spirit, enticing customers to make purchases during festive moments.
Apply this strategy strategically during occasions like New Year, birthdays, or store openings. For example, you may consider offering an enticing discount for customers celebrating their birthday. The personalized touch makes it more likely for shoppers to make the purchase.
Event-driven discounts significantly impact consumer behavior.This discount strategy increases in sales by 25% during holiday periods. Moreover, personalized offers, such as birthday discounts, boost conversion rates by 30%, creating a win-win scenario for both customers and online stores.
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The Validity discounts hinge on a defined timeframe, whether it’s a span of 10 days or until a specific date like December 31st. This time-bound approach serves as a powerful incentive, motivating customers to make their purchases swiftly. Simply put, after the specified period, the offer expires, and prices return to their regular rates.
By setting a deadline, you motivate them to capitalize on the favorable terms before they revert to standard pricing. It’s particularly effective when offering special items for specific dates, like elegant evening dresses for occasions such as St. Valentine’s Day.
Limited Quantity Discount
The store sets a cap on the number of products available at the discounted rate. For example, 10 blouses or just 5 pairs of shoes. By limiting the quantity available at a discount, you create a sense of scarcity, encouraging customers to act fast before the promoted items run out. The scarcity principle drives a fear of missing out (FOMO), motivating customers to make prompt purchasing decisions to secure the limited-stock items at a discounted rate.
Purchase Threshold Strategy
The Purchase Threshold discount strategy is an approach where a store encourages customers to reach a specified purchase amount (XXX) to unlock additional benefits. This can involve incentivizing customers to add more items to their cart or providing a direct discount when the purchase amount reaches the specific threshold.
Implement this strategy to motivate customers to explore more products and elevate their cart value. By setting a purchase threshold, you inspire clients to consider additional items to reach the specified amount and enjoy the associated benefits.
The Pre-Order discount strategy is a forward-thinking approach, often utilized when selling products not yet in stock. Clothing stores, for instance, can showcase upcoming collections, allowing customers to pre-order items with the added benefit of a discount.
Unveil sneak peeks of upcoming collections and offer exclusive discounts for pre-orders. Customers, excited to be among the first to own the latest styles, commit to purchases before the items are in stock.
Category-Centric Discounts involve offering targeted discounts to specific customer groups, catering to their unique needs. This strategy creates distinct offers for segments like “for students”, “for the best customers”, etc.
Implement this strategy by identifying customer segments that hold a significant share of your target audience. Craft special discounts or promotions tailored to each category, such as exclusive deals for students, senior citizens, or loyal customers. Ensure these offerings align with the preferences and purchasing behaviors of each group.
Like & Save
The “Like & Save” strategy encourages customers to engage with the store’s Facebook group, Instagram page or any other social media by offering a discount in exchange for a simple action – clicking the “like” button. This approach leverages social media interaction to reward customers and build an online community.
“Like & Save” discount strategies often boost social media engagement and brand visibility. With an average 10% increase in online followers, this strategy not only drives sales but also strengthens the store’s online presence. It’s a modern twist on customer loyalty programs, turning a simple click into savings for the shopper and heightened visibility for the brand.
The Referral Rewards is one of the most effective discount strategies that taps into the power of word-of-mouth by offering discounts to customers who recommend the store to friends. This strategy encourages existing customers to share their positive experiences and bring in new customers.
When existing customers refer friends, and those friends make purchases, reward the referrer with a discount for their future purchases. Make it easy for customers to share their love for the store and enjoy the benefits.
The Negotiation Nudge strategy anticipates customer requests for discounts and proactively offers a small discount that sellers can provide on request. This strategy aims to cater to the negotiation tendencies of buyers, providing an incentive to make an immediate purchase.
By proactively addressing customer requests for discounts, the strategy not only satisfies customer expectations but also enhances the likelihood of closing the sale on the spot. This approach ensures that customers feel valued and encourages them to make a purchasing decision without exploring alternatives.
The Bundle Bliss strategy introduces dual discounts when customers purchase two or more items together. This can involve offering a smaller discount on one item and a more substantial discount on the second. The key is to create an enticing combination that amplifies the overall value for the customer.
Implement this strategy by strategically pairing items that complement each other. For instance, “Buy a dress for a 10% discount and get 30% off on a handkerchief” or “Purchase boots with a 15% discount, and enjoy a 40% discount on shoes.” Ensure that the combined offer encourages customers to add both items to their cart.
The Surprise Savings strategy adds an element of excitement by offering random discounts to customers. Utilizing a dice or cube with corresponding discount values, customers have the chance to roll and win a surprise discount, injecting a sense of fun into the shopping experience.
Provide customers with a chance to roll a dice or draw from a lottery to reveal their exclusive discount. For instance, “Roll the dice and win a discount, ranging from 10% to 50% off your purchase.”
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