If you are looking for some creative ways to offer discounts as part of your Sales promotion, then you are at the right place. Read on to explore some of the creative ways to offer discounts in your business.
1. Tiered Discounts
This is a discounting approach where you can set up multiple discount slabs or levels at different purchase values. An example for this is shown below:
a) 10% off if the customer buys for more than $50
b) 15% off if the customer buys for more than $100
c) 20% off if the customer buys for more than $200
This tiered discount gives a more perceived value to the customers at higher price points, hence they tend to purchase for higher order value. This helps you increase your sales revenue. If your unit economics is set correctly then, you will not lose much even if you offer a larger discount at higher bill amounts as the fixed cost gets reduced.
2. Loyalty Programs
In this approach, you run loyalty programs which benefits your existing loyal customer base. Here, you run marketing campaigns for your existing customers by rewarding them with exclusive discounts or cash back or offers. This helps you to drive repeat sales from your existing customer base. As your existing customer base is already familiar with your brand and already values you, they will willingly come back again, provided they are offered good products and service (and discounts in this context).
3. Product Bundle deals
In this approach, you try to bundle together certain related complementary products which your customer might be buying along with the primary products. Here, you make the bundled purchase favorable by offering certain promotional discounts in order to make the deal enticing for the customers. For. e.g. if your primary product is Mobile, you might make a bundled offer by providing mobile accessories like Screen Guards, Ear buds, Mobile covers at a discounted price. This will help you increase the ticket size of the purchase and shall help you with faster inventory turnaround.
4. Referral Discounts
In this technique, you create referral marketing campaigns by offering some value to the existing customers for referring their friends. This helps with word of mouth marketing for your business. Additionally the referred customers are always easy to convert as your existing loyal customer would have already endorsed your products and services to them, thus making your life easier. In this approach, you need to offer some discounts or promotions for your existing customers to encourage word of mouth marketing. For e.g. you can offer referral discounts for both newly referred customer and the existing customer.
5. Flash Sales Coupons
From time to time, you can offer flash sales coupons where you can offer a time bound promotional discount. This will help build a sense of urgency as well as popularity among your customer base who would want to make use of such promotional events from time to time. For e.g. Month end stock clearance product sales at discounted price or Happy hour discounted price on non-busy days.
I hope you will like using any of these discounting ideas as part of your next sales promotion campaign. Having said that, remember that the best sales promotion technique would be the one which aligns with your brand as well as your customer preferences. Hence, you need to carefully run some A/B marketing experiments on a subset of customers in order to understand and get useful insights.
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