Lets start by asking, why does discount Work? What gives sales and discounts that type of staying power?
It’s quite very simple, they are remarkably effective at driving sales, and that can be attributed to the following three (3) things that discounts can do:
- Minimize the risk of trying a new brand
- Build a sense of urgency
- Prevent the pain of missing out on a sale
In addition, sales, discounts, sales and other short time offers tap into our sense of urgency as buyers. More so, Urgency is a marketer’s coup de grâce; which implies that it’s what makes us place an order today and not next month or never. It cuts through analysis paralysis, second guesses, and doubt. When buyers are frightened to miss out, many other roadblocks and considerations go out the window.
Such is what makes discounting so powerful for client acquisition in particular.
Furthermore, with thousands of online businesses out there of recent, buyers have to take on some hefty risk when placing order from a new, untested company. Discounts, regardless of how big or small it could be, can dampen that risk and enable buyers become more confident in trying your shop.
Types Of Discounts That Boost New Customer Acquisition
There are various kinds of discounts, however the following 3 discounts listed below have been proven best for attracting new customers.
Buy One, Get One Discounts:
Here, there are few things to be discussed for percentage-off or dollar-off discounts, however the Journal of Marketing discovered something customers fancy even more than discounts, which is FREE STUFF. Using the word “free” in your promotions can drive more customers to convert.
For instance, “buy one, get one free” sales are more or less the same as a 50% off discount for two products—but they sound a lot better to customers.
First Order Discount
First order discounts are an enduring fixture of today’s online market. For surety, you can offer new customers a set discount off their first purchase from your store. Such discounts are specifically useful for addressing one key aspect of the ecommerce equation —which is minimizing the risk of giving a new brand a chance.
However, one of the biggest barriers for new ecommerce brands is winning customers trust enough to hand over their payment information, especially when they can’t physically see or feel your items. First order discounts can mitigate some of that risk, therefore customers have less to lose when trying something new.
Various questions in between the best approach to shipping costs abound in the ecommerce world. How many or/and which shipping options should you provide? Should you offer free shipping? What should you charge customers for them?
Well, according to Dropazz Insider study, unexpected or expensive shipping costs are the number one cause of online store shopping cart abandonment. How you tackle shipping can either win or lose you customers in and of itself.
Many of this comes back to concept of risk factor. Let me explain; the more a customer pays in shipping charges (which might or might not be refundable), the more they’ve got to put on the line before even touching the item. And when those shipping charges are unexpected or/and deceptive, customers would never trust or value your brand.
Above all, always be smart about when and how you deploy discounts, and by so doing, you would be like a boss on his/her way to winning over smiling and paying new customers.