It is no secret that anyone put in the position of a shopper can hardly resist rebates, but the extent of the power of such an alluring sales tool, as well as its optimal usage enfolds much mysticism for many retailers. To their great surprise, you, as a retailer, should know that these are governed by the same law of attraction which you might use to build their image.
In basic terms, the law of attraction aims to convince us that much of our intuition of the world eventually proves true. Hence, much of the success of discounts depends how the proposed savings are perceived by buyers rather than what the proposed savings concretely are. Where the following becomes even juicer for marketer is to know that consumers tend not to think about discounts very rationally as most of us would prefer avoiding doing math on the spot.
Today, marketers have numerous types of discounts at their disposal as well as an endless manner of presenting them with hopes of delighting shoppers and driving positive results to the bottom line.
On the other hand, discounts may have an adverse effect on your businesses if used wrongly. Before blindly allocating rebates, it should be your imperative to determine the most relevant in driving sales and amassing engagement from your customer. Otherwise, you run the risk of deploying campaigns which do not match the expectations of your shoppers, that attract the wrong type of consumer for your brand, or worse, that deem your business unprofitable.
If you are interested in having a taste of the concoction which mixes economic behavioral psychology, general trends, and specific analytics to optimize your discount strategy, we have readily available a great ebook on the matter. In this extensive paper, we touch base with some of the major points that marketers must keep top-of-mind when developing each discount campaign, including:
– The most common types of discounting methods that customers expect and love;
– The various ways of presenting a discount to entice consumers, yet keep your profit margins high;
– The importance of studying the habits and expectations of your specific customer pool in order to create campaigns that entice new/existing shoppers, uphold brand strategy and increase conversion rates;
– The power of creating customer segments for personalized discounts to effectively engage customers and foster loyalty;
– The effects of discount timing, duration and frequency on the overall image of the brand as well as the success of any given campaign;
– The value in running tests on smaller groups in order to ensure success on a larger scale later;
– And more…
In an attempt to demystify this powerful sales tool, we aim to provide you with the definite science behind formulating the ideal discount strategy that provides value for customers while continually driving profits for the business. Nonetheless, despite the science, witnessing the results of properly using such a powerful tool can be quite magical.