How To Successfully Offer Discounts In Your Business

Everybody loves a special discount. Just look at Black Friday or Cyber Monday! There is a reason viral videos exist of people trampling over one another to get to the discounted big-screen TV – they love a deal!

When businesses run a sale or promotion, they can often expect a rush of new and existing customers and a boost in sales. Yet, there’s an art to offering a discount, you don’t want to end up relying on them for all of your business’ income. In fact, we personally know of a business that has trained their customers so well that they always look for their monthly discounts – something this business wishes didn’t happen and are now trying to retrain their customers.

It’s not always a case of throwing open the doors (or the virtual ones) and yelling “Everything is half off!”. There are different types of discounts to offer, and goals these sales can help a business achieve. Plus, discounts should be limited so your customers not only call during a sale but every other time of the year.

Here are some ways of offering a discount, to help you get started:

  • Time of year offer

This one is self-explanatory but you would offer discounts at specific times of the year like Mother’s Day, Black Friday, or perhaps an after-Christmas sale. Most businesses choose to have a sale during holidays as customers normally expect them at that time.

  • Limited time offer

During a limited time, you can offer some discounts on items perhaps you have in abundance to move off your floors. Perhaps the time lasts for a week or perhaps while supplies last. Either way, your customers will take action with the scarcity element and not wanting to miss out on some great deal.

  • Up-sell

When you make a sale once to a customer and if you provide great service, that customer is more likely to purchase from you again. They know and trust you so you can now offer an up-sell to encourage additional purchases at check out. You can also include this in your email automation after a purchase has been made. An example of this is that I recently purchased an item of clothing for my daughter and after the purchase was sent an email that offered a 50% off discount for another item if I made another purchase within 12 hours.

  • Pre-sale

Offering teasers of new products before a new product launch is a great way to offer discounts, at a limited time, before anyone else has the chance to make a purchase. A pre-sale also helps validate your idea since customers who purchase are sending you positive feedback about your product. Pre-sales gives you cash up-front which is helpful for most businesses.

  • Stock clearance

Every business that holds inventory will experience a time when they need to clear out old stock. Whether it’s at the end of the year or mid-year, it’s an ideal time to have a sale so you can make space for the next product line launch. 

  • Loyalty program

A loyalty or rewards program encourages repeat purchases from your customers by giving them gifts or benefits for purchases. These benefits can include points to use as discounts with future purchases or free products (perhaps product that you want to move off your shelves, or samples to encourage future purchases, etc.)  

  • VIP discount

This is an extension of the loyalty programs but it only rewards your VIP customers. Yes, all customers are important but there are some who spend a lot more with your business or send you many referrals. Choosing to reward your VIP customers can turn them into raving fans (there is even a book about creating raving fans)! 

If you need help implementing your next great idea, offer, or rewards program, schedule a chat with our team. We’ve helped many businesses walk through the pros and cons of offering discounts.