We all love a bargain and your customers are no different. That’s why discount codes and strikethrough prices are so effective when you want to get new visitors buying or encourage existing customers to order again. But when it comes to slashing prices, how can you offer tantalizing discounts without hurting your bottom line?
In this guide, we share when and how often you should be using discounts, and which customers segments to offer them to, to generate the most revenue form your discount strategy.
Discounts, sales, and offers: what are my options?
The discount options or offers you use will depend on the visitors you’re trying to attract, the positioning in your industry, and your business goals. If your business is at the high-end of the market, for example, then a customer loyalty scheme with regular offers like the Tommy Hilfiger “Hilfiger Club” could work well for you. If you have bigger profit margins then you can offer more regular discounts and monthly sales. Your business could also combine a mixture of the two.
Experiment to find out what works best for your brand and remember to choose a goal for every campaign or offer, then measure the results.
Here’s a rundown of the different types of discounts and offers you can choose from:
1. Discount codes
What better way to spread holiday cheer than by treating your customers to a discount code? Christmas is an expensive time of year and people are on the lookout for a deal, so discount codes are a great way to help your local business to compete with larger stores and encourage new customers to buy your products. You can create a customized discount for any occasion, e.g “BlackFriday19” or “Christmas2019.” Just choose an expiry date for your code or set a minimum spend amount.
To create a discount in your Jimdo Dolphin store go to Store > Overview > Discounts.
The best thing about creating a coupon or discount code? With Jimdo Dolphin you can track how many customers redeemed it to see if your campaign was a success.
If you have a Jimdo Creator website, go to Menu > Store > Discount Codes > Create a new discount code. Learn more about how to use discounts in your Creator store.
2. Percentage discounts
Need to make room for new collections or want to clear old stock that has an expiry date (like food or makeup)? Encourage customers to scoop them up by knocking a percentage off the full price, like 10% or 50% off.
If you’re worried about extra stock expiring, you can now plan your discounts ahead of time. Just create a discount and set active dates for your offer and they’ll start automatically. So you’ll never be stuck with stock that’s gone out of date (or worse, out of style).
When your customers need some extra motivation, you can limit the number of times a discount can be used. This helps to create a sense of urgency and lets customers know that if they don’t act fast, they could miss out on your offer.
3. Strikethrough prices
Strikethrough or cross-out prices help to give your sale prices “curb appeal” by showing customers exactly how much they’re saving. The strikethrough price shows the original price of a product with a line through it, next to the new sale price, so that customers can compare the two.
In the interest of transparency, we suggest giving a reason why you’re adding a strikethrough price in your product description. For example, “All knitwear now 50% to make way for our Spring Collection!” Learn more in this post from Webdata Solutions.
If you’re a Jimdo customer, you can find this feature under Store > All Products > the three dots (⋮) > Edit the specific product. Upgrade your shop to the VIP or Business plan to start using strikethrough prices in your store.
How and when to use strikethrough prices or discounts
There are lots of ways you can use discounts or special offers to drive sales, get leads or build customer loyalty.
1. Attract new customers with seasonal sales
Win new customers with a Black Friday deal, clear leftover stock in the January Sales, or draw holiday shoppers with your own Summer Extravaganza. Themed discount codes will help you keep things fresh and customers buying throughout the year.
2. Promote your product at an event
Get attendees talking about your brand and encourage them to try your products with an exclusive discount. That way, you’ll create a buzz on the day, get some sales, and stick in people’s minds long after the event is over.
3. Advertise via industry influencers
Want to make the most of your collaboration with an influencer? Win business from their followers by sharing a voucher code that’s just for them, so you can turn that exposure into sales.
4. Encourage large orders
Give customers an incentive to spend a little more with a discount that only applies when they spend a certain amount. This is a great way to increase your average order value and boost revenue.
5. Reward loyal customers
Studies show that not only does it cost five times more to acquire a new customer but increasing customer retention by 5% increases profits by 25% to 95%. So it makes sense to keep the customers you have and encourage them to purchase more. Try offering money off their next order or an exclusive discount code to say “Thank you” during the festive season.
6. Create a buzz around a new product
When you launch something new or branch out into a new kind of product, it can take a while to get it off the ground. But the thing about a great deal is: it’s hard to keep it to yourself! Entice customers with an introductory offer on your pricing page and they’ll soon tell their friends that they bagged a bargain.
7. Get subscriptions to your mailing list
According to the Data & Marketing Association, email is one of the most cost-effective marketing channels, generating an average of $32 for every $1 invested. Offer visitors a reward for joining your list and you could be looking at an influx of potential future customers.
Now you’re all set to prepare your store for sale-season! If you’re looking for more ways to generate income in your store, try using these six psychological triggers to boost sales.