Today, platforms like Amazon, Shopify, and WordPress have standardized how many entrepreneurs set up their businesses. As a result, it’s also easier for small businesses to engage in discount marketing, by setting codes that can automatically reward new or loyal customers with special bonuses. These schemes aren’t made equal, so we’ve gathered three handy discount marketing tips below.
The Many Faces of Discount Marketing
Discount marketing can take many forms besides the typical sale. While sales are common for e-commerce stores and some paid software, there are also free trials that grant limited access to a service. They function similarly, bringing in new users who can try a product/service out and then decide if they want to become a repeat customer.
These methods can map onto most business models, with a little tweaking. For example, free trials become free spins on casino sites where slots and a lot of other games are hosted. Those sites also offer deposit matching or account credit, which effectively grants free games to new or loyal users. For casinos offering poker, it’s common to see new no-deposit bonus codes that let players buy into a game and get started without putting any of their money down. In each case, the main goal of discount marketing is to reduce the barrier to entry (for a service) or make a product more appealing for a limited time.
Discount marketing works because it’s reciprocal. The business agrees to offer its services for a lesser price, and the consumer can then agree to take the business up on that offer. Then, some users will become repeat customers because the business did them a favor, and there may be more offers in the future.
It’s also a great way to beat competitor prices for a limited period. What’s more, discounting unpopular products/services can ultimately make them more profitable than they’d be when offered at full price.
Three Pro Tips for Discount Marketing
Once you have some idea of what discount marketing is and how it can work with your business model, you can use these three tips to refine your strategy.
Use Social Media & Viral Marketing
Being active on social media is essential for most online businesses today. While discount marketing may have been around for centuries, the internet has given it a new life and made it easier than ever to signal boost offers and communicate with your audience. To that end, you should be active on the same social media networks and forums that your customers frequent.
Most online businesses cover this, but the best ones try to go the extra step by making attempts at viral marketing. If viral marketing pays off, it can help generate repeating interest in your business, propelled by the community surrounding your product/service.
Sweeten the Deal with Bundling
If a discount isn’t garnering much interest, a discount for multiple products might. This includes ‘buy one, get one free’ offers.
This approach can work well if the discounted products are related in some way, where customers would typically buy them together. If the business model offers services instead, it’s just a matter of throwing in more bonuses, rewards, or free trial period to make the discount more appealing.
Offer Discount at the Right Moments
Impromptu discounts are always appreciated, but tailoring your discounts can help push customers to seize on the opportunity. Some e-commerce stores offer discounts for the user’s birthday if they’ve made that information available. Other well-timed discounts can target customers who have been inactive for a while, customers who have left carts abandoned, or customers who have had an issue with their typical order.
With these tips, your discounts and other offers-based marketing strategies should become more appealing. If your competitors neglect social media and don’t time their discounts, these tips can give you a theoretical advantage.
