Creating effective deals and discounts

Note: This is article #8 in the The Ultimate Guide to Creating Repeat Customers

In a world with millions of thriving companies, it’s hard to get customers to choose you over everyone else. Most companies have already figured out customers’ sweet spots: deals and discounts. What better way to lure customers in?

Deals and discounts might be overused nowadays, but it’s because they’re effective. As listed in Sqoot’s e-book about deals, 68% of customers who buy deals return even without another discount. A whopping 53% go on to become regular customers! Not only do these customers return, but 83% of them end up referring their friends and family.

Many customer loyalty programs rely on deals and discounts as rewards. Even if you don’t have a loyalty program, here are a few tips for how to make your deals and discounts actually work:

1. Schedule the discount for the next purchase.

Either delay the delivery of the coupon or specify that the coupon will only be good on the next purchase. This gives your customers a reason to visit again. It may be hard to make them wait, but delayed gratification makes it all the more satisfying to take advantage of these discounts.

2. Offer a bigger discount on the next purchase.

Give a reasonable discount on their first purchase (this could range anywhere from 10% to 20% depending on your business model) and a bigger discount on their second one. Be sure to make your customers feel like they’re getting a great deal on both purchases!

3. Offer free shipping.

If you can afford it, offer both discounts and free shipping. If not, offering free shipping alone is a good deal. Your customers should (hopefully) know that shipping costs a decent amount and saving on shipping is worth making a purchase. Be sure to limit your free shipping offer to addresses within your country, because otherwise, it could get pricey.

4. Give holiday discounts.

Winter holidays are an especially high profit time for companies because customers everywhere are out shopping for gifts. Keep up with the spirit of giving by offering your customers extra valuable offers during the holidays.

5. If discounts aren’t working for you, try gifts with purchases.

Gifts with purchases (GWP) are especially enticing because customers are literally getting more than they’re paying for. Customers who are shopping for others are more likely to purchase when there’s a GWP offer because they can re-gift their GWP and save money that way. Some customers even target GWP offers so that they can re-sell their gift! Either way, customers like them!

Deals and discounts are effective for both new customer acquisition and existing customer retention. Click here to read about how deals and discounts go hand-in-hand with customer loyalty programs.