Increasing sales and generating more revenue is the primary aim for almost all business establishments. Over the years, business leaders have come up with various strategies and techniques to improve their sales and while some have worked and have become industry standards, some others have failed. One such technique that have worked for many years now is providing customer discounts. Customer discounts not only helps you to increase your sales but it also helps you to increase the exposure of your brand in the market and by doing that attracting more customers towards your brand. Customer discounts can also help the brand to create a loyal customer base which is crucial to survive in the current highly competitive market environment. With that said, there are certain things that business leaders should keep in mind before taking a final decision regarding customer discounts owing to the fact that if not planned properly, it can back fire. Now, let’s take a look at the different types of customer discounts that businesses can use to boost their sales.
1. Bundled Discounts: Bundled discounts as the name itself suggests are discounts that happens when a seller that is selling more than a single product or service is offering specific discounts to customers that are purchasing more than a single product or service. The major advantage that this kind of discount offer the seller is the fact that you are selling more products. This can also help you to increase your average order value as well.
2. Prepayment Discounts: These types of discounts can be seen if you are booking for a hotel or booing your travel. These types of offers can help businesses especially businesses dealing with expensive items to create a good first impression and attract the customers to buy your product or service.
3. Volume Discounts: This discount is- you buy more, you save more. These types of discounts can be better suited for businesses that are operating in the apparels industry and especially for expensive retailers. Apart from them, these kinds of discounts can also work with B2B companies that are aiming to increase their business on specific products.
4. Event/Seasonal Discounts: As the name suggests, these are discounts that are given for some specific event or a particular season. The most common example for this is brands providing discounts before certain celebrations. This is a great way for businesses to noy only increase their sales but also to attract new customers and create an ever-increasing loyal customer base.
5. Free Shipping: This has been a buzzword in the industry for many years now and in the time where are living in right now where the accessibility of purchasing something from across the globe is very simple, businesses who are looking to expand their operations across the borders of their country, then free shipping options will help you to attract a far bigger international audience.
Customer discounts can be effective if you choose the right kind of discounts that you want to provide and this can be an effective way to increase your sales and attract new customers towards your brand.