what is discount pricing
Discount pricing is one of the strategies in e-commerce business to boost sales and conversion rates by dropping prices of their products. Discount pricing strategy aids to generate sales in high volumes, clear unsold inventory, retain loyal customers and secure new customers. According to a recent McKinsey & Co survey, 30% of people have been inclined on discounts to buy products online to save money since the coronavirus pandemic period. However, offering more discount incentives can hamper business revenue margin and people may think that your product is of low quality that leads to brand distrust. So, discount pricing is a skilful approach to implement an optimal discount level to scale your business improving sales with profits.
Effective discount pricing strategies
Effective discount pricing strategies enable you to build and plan your discount marketing strategy with the right approach considering customer buying behaviour, sales history, and relevant buying trends. offering discount incentives for the products at all the times may not give a healthy boost to sales rather hurt you whole than it helps. It is very essential for a business to understand the psychology behind discount strategies and determine appropriate discount strategies for the situation at any given time. Let us discuss different effective discount pricing strategies in Spurtcommerce which helps you to find better ways to incentivize purchases.
Discount incentives for right products
Discounting all the products may not be the appropriate action to boost customer acquisition rather led to detrimental long-term effects like drained margins, attracting less than ideal customers and brand distrust. Instead consider bestselling products fitting with the season and determine whether running a discount is the right way. For instance, discounts on ethnic wear during festival season can be a great way to attract a new surge of customers once or twice a year. if you discount too often customers may think to wait for the next discount or price to get reduced to purchase. Spurtcommerce allows you to be selective with the discounts to encourage brand-positive customer behaviours. An effective campaign can improve brand awareness and drive sales without the need for costing advertisements.
This strategy encourages customers to buy in bulk as the discount percentage increases with the total quantity of purchase. Spurtcommerce enables you to set a discount price after a certain number of products purchased. For instance, Canon offers a discount of 200 Rs on each camera if you buy 5 cameras and 300 Rs discount on each camera if you buy 10 cameras. Tier price chart displays discount pricing with the quantity of the product.
Special price feature in Spurtcommerce to create perception of savings
A special price feature allows you to display discounts in a dramatic way that will be helpful to build a sense of savings in customers. It displays “normal price” and slaps it and states the current price that would be more impressive than just displaying something like 25% off.
coupon codes for loyal customers
This strategy can be an amazingly effective way to build the bond between you and your loyal customers. you can make your customers feel special and continue for a long time in your business. Spurtcommerce enables you to provide coupon codes for specific customers that they can enter while they purchase to get money off. You can set the number of times and time period for the coupon to be used by a customer.
seasonal discounts offered to specific products can kick start sales at certain times in a year. Discount pricing during festivals like Diwali, Christmas etc will not only generate sales but also clear previous inventory stock. Incentives for your customers can encourage them to share your products on social media or recommend them to friends. Spurtcommerce facilitates effective campaigns for these discount strategies as you can see all discount deals on the single page. This helps customers to see all available discounts and go for purchase.
Special events discounts
Discount pricing with a good reason can help you launch special events that boost up your sales. Customers are more likely to take advantage of exclusive deals offered at special events like women’s day, Mother’s Dayetc. You can send targeted emails to specific customers with your special offers in an effort to promote products related to the event.
Discount pricing executed strategically can drive conversions but handled incorrectly can cause real revenue to decline. Effective discount strategies help you to add value to your offerings rather than just slashing your prices. Discount pricing employed with appropriate strategies and a good plan of action can incentivize customers, increase revenue and instil brand loyalty.