The word discount, sale or special offer lights up a light bulb in the minds of savvy shoppers everywhere. Many people wait for sales or discounts at seasonal sale times such as Black Friday or Cyber Monday to buy the products or services they need. Studies show that 64 percent of buyers will wait for a sale or discount to buy a product. That’s because high value, good quality products or services can be obtained at a fraction of their price if the buyer can find a discounted item, promo code or coupon.
However, Amazon discounts are not just an amazing opportunity for buyers. Sellers also benefit greatly by offering periodic discounts and sales on their high-quality items or valuable services. Sellers benefit by getting increased traffic on their sites or physical retail stores.
More traffic and the lure of limited time special offers results in increasing sales volume. Discounts, sales and special offers are a great incentive to get window shoppers to buy while hesitant shoppers may be pushed over the just looking threshold into the paying customer category by the pressure of a limited time high quality discounted product. This urgency that is created by the limited time discount gets people buying while
Benefits to consumers of discounts and sales
Finding a bargain
Consumers can find expensive high-quality items at lower prices when they can find a discount, special offer or sale. Buyers get the satisfaction of having scored a bargain when they avail of a discount.
Buying premium quality goods or products at a lower price than the market rate means that consumers can save some of their hard-earned money and get more value for their bucks.
Feeling rewarded for brand loyalty
Offering high quality premium goods at lower prices than in the marketplace is also a great way to reward your loyal customers for their continued patronage.
Benefits of offering discounts to sellers and retailers
Attract new customers
For sellers, discounts, sales and special offers attract people into stores or online shops. This means you will attract new visitors into your store. This increase in traffic to your shop will mean that visitors turn into customers. This happens because a visitor will spot an item they need and buy it to avail of the discount.
Sell items straight away
Nothing prompts a hesitant shopper to buy something as fast as a good value for money sale. About two thirds of surveyed consumers admitted that a discount was often a deciding factor when choosing what and when to buy. That means with the right discounts such as a limited time offer you can get more people to buy straight away to benefit from the discount.
Shift stock and open up storage space
Offering sales on current stock means that it will rapidly be taken off your hands by the people who need it. This means that you free up valuable storage and display space for new stock.
Improve your brand image
Offering discounts to senior citizens or military personnel will improve the public perception of your brand and will enhance your brand’s image in your society.
Increase brand loyalty
70 percent of surveyed US consumers said that a discount was one of the biggest deciding factors when holiday shopping. When your loyal customers are offered special offers or discounts which help them to save money at critical times such as Christmas they will keep coming back to your shop. This is because valuable discounts increase brand loyalty.
Types of Discounts
Both shoppers and stores have to be aware of the kind of discounts they are getting or offering. Discounts are often of two types. Customer driven discounts are directed at the needs of the customer while market driven discounts deal with the needs of the marketplace or the economy.
Customer driven discounts
These include new customer or welcome discounts to get visitors to start buying. Discounts may be offered to people who filled online shopping carts and did not complete their purchase. Consumer driven discounts are also offered to customers who have not bought anything for a long time. These are known as reengagement discounts. Flash sales offer deals for a limited time and increase the pressure or urgency to buy. The option of flash sales means that customers are also willing to sign up for brand email notifications or apps to know when the flash sale occurs in a timely way. Occasional discounts are also employed to reward customer loyalty and increase brand loyalty.
Market Driven Discounts
Holiday or seasonal sales are expected by customers and can increase sales volume and customer traffic. Discounts to shift aging stock and free up storage space are also discounts driven by market needs. A new product or service may be offered on a discount to hook new customers while some core products or services may be occasionally offered on a discount to increase your brands market share. A market driven discount may also be offered as a response to a competitor’s cheaper product.
The psychology behind effective discounts
People will strive to avoid pain and seek pleasure. The urgency involved in a limited time special offer means that people will buy straight away to avoid the pain of missing out on a discount. The saving money or discount offer doesn’t work as well on high quality luxurious goods because people are willing to pay more for good quality luxuries. A lesser price makes the product look like it lacks exclusivity or that it is of a lower quality.
Short seasonal sales or limited time offers ramp up the urgency for consumers to buy while, long sales mean that no one will ever buy for full price. Some discounts operate on a buy one, get fifty percent off the second item. This is actually a more effective discount rather than the more usual 30 percent off, even though both offers work out to about the same thing.
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