Who doesn’t love a discount? Your customers certainly do. Research shows they are effective at inducing impulse buys and increasing short-term sales, so make sure to take advantage of discount tools. However, consider using marketing automation tools for ecommerce to set them up, and choose an ecommerce platform that enables discount automation.
Systems and processes are necessary to succeed in anything. Yes, even in ecommerce. Automated systems and processes are even better. As long as you set them up correctly and monitor them regularly (and systematically), you can put a formula that you’ve proven to work on autopilot and ensure good results every time, all the time.
By automating your marketing operations, you can rest assured that your products and your brands will always be on full blast to your target audience. Sales opportunities can be maximized without you having to manually catch and grasp each one. The result? You won’t miss a chance to capture a lead or push a basket over the check-out line.
What discount tools should you consider for your ecommerce operations? Here are some of them.
Discount Coupons
In your store, create discount coupons. They can be for a fixed amount (e.g., SAR 50) or for a percentage of the price, subject to a cap amount (e.g., 10% up to SAR 100).
Discount coupons are like vouchers with a code that your shoppers can apply at checkout on the payment page. Applied correctly, they will deduct the coupon value from the total price they need to pay.
How to use them: Distribute them to new email list subscribers to encourage them to make their first purchase. Give them away to customers who made a significant purchase to encourage them to make another one. You can also give them to frequent buyers, to reward and strengthen their brand loyalty.
Why discount coupons: One study found that discount coupons may be more tempting than direct discounts (i.e., slashing prices), even when both deliver the same absolute monetary value. With coupons, the study said, people compare the original prices (the original price minus the coupon means great value). With direct discounts, people tend to obsess over the final price, even questioning if the discount truly made the item cheaper.
Special Offers
Special offers can increase the perceived value of your products. Special deals can cover various types of discounts.
How to use them: Your use of special offers will vary depending on your design and preferences.
- A fixed-amount or percentage reduction on the item price: Buyers get a percentage (25%) or a fixed amount (SAR 20) off upon checkout.
- A tiered discount: Customers receive a higher percentage or a fixed-amount discount when they reach a total purchase threshold. There can be multiple thresholds.
- Flash sale: A discount available on a specific date and for a limited time only (e.g., from 12 midnight to 2:00 a.m.).
- Buy one, get one (BOGO): These deals essentially provide double the value without discounting the price. Another iteration is “buy two (or x), get one free.”
- Special gifts: You can bundle slow-moving items with high-priced items and market the former as free gifts. This type of special offer can increase the turnover on both slow-moving and high-ticket items. It can also increase the average revenue per user (ARPU). Another iteration of this discount type is to offer free gifts only to customers who reach a certain purchase amount threshold.
Why special offers: Special offers provide buyers with a powerful incentive to check out or a reasonable justification to make an expensive purchase.
Bank Offers
A bank offer is a discount you offer to customers paying with a card from a particular bank (e.g., Al Rahji Bank, Alinma Bank) or a specific payment processing network (e.g., Visa, Mastercard).
How to use them: You can provide discount codes that customers can use upon checkout with their qualified payment card.
Why use them: They’re a brilliant strategy because, while they induce sales, the discount does not come out of your pocket. The bank or payment network makes up the difference between the original and discounted prices.
Cashback Offers
Cashback offers entail giving a percentage (e.g., 5%, 3%, 1%) of the purchase price back to the customer. You’re essentially giving customers a discount, but instead of deducting it directly from the price, you offer it as a reward.
How to use them: The cashback amount is automatically computed after a successful checkout. The cashback reward is stored in the customer’s account as readily usable store credit.
Why use them: Cashback discounts reward customers when they buy. Since cashback rewards accumulate in the customers’ accounts, they also incentivize future purchases and enhance brand loyalty.
A Word to the Wise
Discounts are effective; there’s no doubt about that. This is why the best ecommerce platform must include discount features in its suite of marketing tools.
However, you must use discounts strategically. People react differently to various discount types. In fact, giving discounts too often can degrade your brand, decrease long-term brand loyalty, and may even depress sales because the expectation of a discount can stop people from buying now.
Give discounts? Absolutely, but use discount tools sparingly and selectively.