How to execute the discount strategy into your products in a successful way?
How to execute the discount strategy into your products in a successful way?
Before you start to use "discount" in your business, you need to be aware of why you are using this strategy, from what you're gonna do, to why you're gonna do it.
#1: Have clear and particular goals about the discount
Making a haphazard decision of using a discount in your business would cause you to fall into obstacles easily. Set a clear and achievable goal would benefit your business as it would lead your company to achieve the target audience through using a discount strategy. For example, if the goal of your business while applying a discount strategy is to attract new customers, you can create a discount offer that is specific to customers who have yet to make their purchase.
#2: Understand your profit margins and product discount
Not only about the goal of your business, ensure that the value of your business is another important factor that you need to consider. Before you execute your discount strategy, you need to know the discounts you are going to offer. There are some push packs if you are not familiar with your profit margins. On the one hand, providing an offer that’s worth way more than what you stand to receive from the customer will lead to a loss for your business. On the other hand, providing an offer that’s of little value to your target customers will likely fail to engage them.
#3: Provide different discounts to different customer segments
For different customers, they have different engagement levels to products. Every customer has their own set of needs, expectations and potential future value. When providing discounts and other offers to your customers, it’s important to take the whole customer into consideration, and provide different discount strategies in your business. For example, offer free shipping for first-come guests to attract more sales, offer bulk product discounts for loyal customers.
This article is co-created by HKEBA & Branch8
