Role-Of-An-Effective-Discount-Pricing-Strategy-In-Business-Growth
How an effective discount pricing strategy can help in the growth of your online business?

How an effective discount pricing strategy can help in the growth of your online business?

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Shoppers love promotional and discounted pricing

Discount is the biggest factor why shoppers go out of their way to purchase products, subscribe to any service, or opt for any offers. Discount pricing Strategy help attracting new buyers and entices them to make a purchase, driving profitability and sales in the process.

Businesses have progressively taken advantage of the potential to develop incomes by running rebate promotions. Furthermore, as per Statista, 60% of U.S. buyers say discounts are more imperative to them while shopping online since the beginning of the Coronavirus pandemic.

How a well-planned Discount Pricing Strategy Can Benefit Your business?

Using a well-planning discount pricing strategy could be the best way to grow your business in numerous ways

1- It helps in building brand value, loyalty, and trust 2- Help attract new buyers 3- Develop a sense of urgency in the buyer’s mind, that encourages an immediate purchase decision 4- Reduce cart abandonment

So every buyer wants a rebate on his purchase and loves to buy discounted products.

A report by an Inc magazine reveals that

  • About 74% of B2C consumers said discounts was a major factor in deciding what and where to buy
  • 66% of shoppers make an unplanned purchase because of the discount in pricing.
  • About 88% of first-time buyers were influenced by the availability of discount offers.
  • 94% of shoppers look for a discount before making any purchase

So implementing an effective discounting strategy can be very helpful in generating sales and revenue. But before crafting a discount strategy it is also very important to understand the psychology of discount and purchasing.

The psychology of discounts

In today’s competitive marketplace. There is a need for a unique strategy to attract new buyers and retain the old ones.

According to Forbes, discounts are enticing and motivate buyers to make purchases.

When the price of any product or service is high, buyers perceive it as a good quality product.

However, when the buyer can buy the product that he believes to be a high-quality product at a discounted price. They

  • Believe that they are savvy buyers and can find quality products at a cost-efficient price
  • Are more willing to try a new product or service from an unknown brand
  • Experience fun through the buying journey of finding discounts, exploring, and making purchases

So it is imperative to understand the purchasing psychology of customers to implement a proper discounting strategy. Now let’s discuss different types of discounts.

Ways To Use Discount Pricing To Build Sales Volume

Use the discount pricing strategy, which sellers have used in the past to attract buyers and to give them a sense of satisfaction. ‘Discounting’ is not a new term but it has already been used by different sellers to attract customers. And to give customers a sense of victory over purchasing any item.

In the year 2020, around 88% of buyers in the US used coupons in their purchases.

Every buyer wants a quality product at a cost-efficient price. So if you’re a seller, an attractive rebate in your sale is a great way to increase your sales volume and revenue.

Are you looking to convert your online store into a cost-efficient mobile app?

Here are some discount pricing strategies that help in boosting the sales and revenue of your online business

1- Discount on first Purchase

Offering a discount on a first purchase makes your shoppers warm up to your business. They start believing you as a customer-centric seller. Attracting new buyers has consistently been a difficult thing to do. Most of the visitors visit your online store and leave it without making any purchase. Offering a discount on their first purchase serves as an incentive for them to complete their purchasing process.

2- Cart abandoners as a new sales opportunity

A recent study by the Baymard Institute shows that around 70% of cart abandonment rates in E-commerce.

So you need to analyze and find the cart abandoners and then offer an attractive discount to them for a limited period.

Also give your customers a gentle follow-up via emails or messages, reminding them they have a product in their cart. And can get a discount if they complete their purchase process.

Read also: Why is shopping cart abandonment a problem for retailers?

3- Reward loyal customers

This is a relationship-building marketing technique that strongly influences the potential buyers to make a purchase or sign up for a subscription. You can entice your customers by offering them discounts or free coupons, or any gift when they sign up on your site. Also offer them a set of gifts on different occasions like completing a month, 6-months, or a year as a subscriber.

So offering loyalty benefits will let your customers or subscribers believe that they have made the right choice.

4- Occasional/holiday offers

The buyer makes more purchases during festivals or any holiday occasions. So offering rebates on products during festivals or holiday occasions increases the chance of products being purchased.

5- Limited time offers

A limited-time offer is any type of rebate, reward, special gift, or deal a shopper can get if they purchase during a certain period. These types of discounts are often used by retailers to attract new buyers. It can be a hurry-up limited offer or one time-limited offer.

6- Referral offers

A referral program or referral offer is a growth marketing technique. That helps encourage existing customers to recommend a product or brand to their acquaintances. This is amongst the best marketing strategies for any business. As a fact, 9 out of 10 buyers trust friend recommendations before making any purchase.

7- Contest giveaways

Through contest giveaways, you can organize a contest and reward a winner. Through this, you can record each participant’s data and which you can use in the future to target them as a customer.

8- Bundled product offers

Product bundling or bundled product offers is a technique bundled together and sold as a single unit at a single cost. This is a great way to entice buyers to make more purchases. In this, you can group more than item items and sell them at a discounted rate.

9- Milestone Discount

This strategy is a great way to get in touch with your loyal customers by offering them periodic offers or discounts. For example, you can offer a special rebate to customers who completed a month, 6-months, or a year with your company as a customer.

10- Free returns

Free return means when a retailer pays return shipping without any restocking cost. It is a great way to build customers’ trust by offering them free returns on their products.

In a Nutshell

Discount pricing strategy can be a great way to boost up your sales and revenue. If you use discounts in a planned way i.e. at the right time, to the right audience, you will see a great result. Always keep a user’s journey in your mind and offer discounts accordingly. So applying the right discounting strategy with a fast and effective mobile app by MageNative can skyrocket your online sales.

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