The global pandemic has led to financial challenges for customers and brands have started offering discounts to customers to help them through the crisis. Discounts do affect the purchase decisions of consumers. Coca Cola was the first brand to experiment with discounts offering coupons for a glass of Coke as early as 1894. Discounts do not mean taking away a chunk of the esteem of products. Offering discounts always works in the favor of a business. It attracts new customers and keeps them loyal. A brand should always know when to use discounts and when not to. Given below are some advantages of using discounts.
Time-sensitive offers which are discounted always attract customers. If a customer is unaware of a brand or has not purchased from it, since its price is perceived as too high, then a discount will attract that particular customer. A discount will also keep on bringing customers back. People love bargains and new customers will never give up on a chance to spend less on a product. Discounts can be offered on in-demand products. For instance, Christmas trees can be sold at a discount before the festive season begins. This increases customer satisfaction. New products should be added to deals frequently.
Increase in sales
When the traffic increases, so do the sales and this is applicable not only for discounted items. When customers consider discounted items, they will also look at other items that they could buy. For instance, if the business is a clothing store and is offering a discount on coats, people might also look around for accessories such as scarves.
Offering discounts helps to build brand loyalty. If a brand offers discounts to students, senior citizens, and to loyal customers to show them that they are appreciated, it will elevate its reputation as a responsible brand. Customers will spend more and will be receptive to its marketing. A brand can also create unique discounts to cater to the preferences of loyal customers. For instance, a customer can be offered a 30% discount for their next order, particularly for that order. They might not use it but they should know that the discount is available. People shop around for offers and if a brand gets complacent about offers, they can lose loyal customers.
Get products off the shelf
When a brand sells perishable items, they need to get the products off the shelf before they expire. A discount makes a product more likely to be bought, offering a discount on a product generates interest in it. If a business sells food items, then expired food items mean wastage and loss. A discount can move the products off the shelf and make way for newer products. There is also the added advantage of customers coming back frequently. Offering discounts also helps customers believe that they can trust the brand. For instance, in electronic products, if a customer gets a discount on an older model, they might feel the need to buy it.