Using discounts on your ecommerce website can be a tough task. Discounts can potentially devalue your brand but can also be a great way to reward customer loyalty. If you’re questioning whether discounts will hurt your ecommerce business, check out our latest post on the topic.
But, for now, discounts don’t have to mean bad news. Done well, it can boost sales and customer recognition. Want to find out more? Here are 5 ways to approach discounts for your ecommerce business.
1. Don’t add too many discounts
If you’re only adding discounts to your site as a last ditched attempt to get more short-term sales, then you probably might want to reconsider your promotions strategy.
Equally if you’re bribing people to sign up to a newsletter or email list with a discount code, it can give the impression you’ve not much else to offer. But, you’ve got tons great content, haven’t you? So, why aren’t you marketing it properly?
Build up relationships with customers before promising vague discounts. Adding frequent discounts can potentially damage a brand’s image and the perceived quality of your products. Using discounts all the time can render them less effective and customers will just wait until sale season.
So, when cutting costs and discounting products try to do it sparingly. Less is more.
2. Change your target customer
Why not mix things up and personalise your promotions to target specific customer groups? This can be a great way to build brand loyalty and keep customers coming back again and again. There are several ways to set up discounts dependent on which customer you’re targeting:
• If lots of visitors are abandoning ship at the checkout, try free shipping
• If you’re active on social media, price discounts are easy to share
• Free gifts are a fantastic way to entice new brand fans
• Newsletter subscription offers are perfect rewards for loyal followers
3. Set discounts goals
If you’re no stranger to ecommerce business, you’ll know that there are times of the year that are slow. That’s why it’s important to plan ahead and set your own sales game plan.
Setting yourself business goals is great practice in general – especially when it comes to discount strategies. So, make sure you have an end goal in mind and figure out what offers you’re going to make, who you’re going to give them to and how you plan to market them.
4. Promote your promotions
There’s no use adding discounts when no one knows about it. So, if you have a promotion, tell everybody. This could involve email marketing, social media campaigns or even webinars. Put your best foot first and strategically promote yourself to boost revenue.
5. Use discounts to build interest in other products
If you offer discounts on smaller, more commercially successful products this could be a fantastic way to tempt customers to inadvertently spend more. They may take this opportunity to buy in bulk, or to have a browse at your other non-promotional items.
With discount codes you can increase the average order value and profit from selling multiple products at once. The perfect way to introduce new customers to the brand and show off everything you have to offer!
Prepare yourself for sales
Discounts can be tricky to get right, but with the correct strategy you’ll be in a good position. With clear goals in mind and an understanding of your brand you can effectively use discounts in the right way for your ecommerce business.
Is your ecommerce store underperforming? Fluid Digital can help. We create Magento ecommerce websites that are functional, user-friendly and future-proofed. Whether you’re just starting out or overhauling an existing site, our friendly team of Magento certified experts would love to hear from you. Get in touch today.