Should You Use Discounts in Your Marketing Strategy?


Discounts are a great way to attract more customers, increase sales volume, and boost profits. However, they have many other implications that should be taken into consideration before deciding whether or not to implement discounts in your business strategy. Discounts can reduce the perceived value of your product or service, cannibalize existing revenue, and undermine your business’ reputation if not done correctly. Read on to find out more about the pros and cons of using discounts in your marketing strategy.

It’s no secret that shoppers love a good deal. In fact, according to Statista, 88% of U.S residents used a coupon for shopping in 2020. Discounts are a common marketing tactic to encourage new or repeat purchases, and can be offered as a percentage of the price of a product or service, free shipping, buy x, get y quantity, or other creative promotions. Discounts can also be used to offload surplus products or services, introduce a new line of products, or support loyalty programs.

When used wisely, discounts can help your business grow by attracting more customers and boosting customer retention. The key is to understand the underlying objectives of your discount and ensure that it aligns with your business goals and buyer persona. Depending on the type of discount you choose, it may be appropriate to limit its duration or use, and be careful not to create discounts that discourage the behavior you want to encourage.

The decision to offer a discount is one that requires considerable thought and market knowledge, but can be a powerful tool in your marketing arsenal. Ultimately, the question is not “to discount or not to discount,” but rather “when and how to discount.”

Almost all products go on sale at some point, between lightning deals, holiday specials, and regular sales. But is it worth it? Discounts can make or break a business, and they should be implemented with caution. They can have negative effects on both revenue and brand image, and should only be offered if they are necessary to achieve business objectives.

To maximize the impact of a discount, it is important to know your goals and work with an experienced discount marketing partner. They will be able to help you determine the best promotional strategies for your business, based on your target audience and sales goals.

In addition to discount offers, it is a good idea to offer exclusive content or other incentive to your customers that isn’t available to the general public. This can make a significant difference in the success of your campaign. For example, the skincare brand Spongelle worked with Shopify Plus Partner Octane AI to create a shop quiz that gives users personalized product recommendations and a discount code based on their results. The quiz currently accounts for 25% of the company’s revenue, and is also used to collect key data about customer preferences. This information can then be used to further personalize the user experience and drive additional sales.