Search
How to make the most out of discounts as a small business owner

How to make the most out of discounts as a small business owner

Ever heard the saying, “Everybody loves awoof?” It’s a popular indigenous phrase used to describe the love that we all have for “free things.” 

When it comes to your business, you might have thought about or even done some form of  promotional sale or discount just to attract more customers. That is because customers are bound to buy more when the prices are considered lower, I mean, who doesn’t love to save money?

It is a given that offering discounts, or any other sales tactic that reduces prices for customers helps you to make more sales, attract new customers and retain existing customers. However, this can also backfire if you do it too much or you do it the wrong way because you will start to make less profits even if it seems like you have more customers.

Why?

Because more discounts given to your customers means less profit to you so there has to be something else you are gaining – asides more customers – which will help you to increase your profit in the long run even though you may be losing a little now.  

Let me explain –

If for example, you can give your customers a discount on products when they join your mailing list, this will translate to more sales for you in future as you will have better access to them and send them more offers in future!

That being said, use these tips when creating a promotional discount or offer for your customers – 

Let it have an expiration date – 

Some vendors intentionally leave the date open when giving discounts or sales offers. This is not healthy and could potentially backfire because not only will your customers relax thinking “they have enough time before the offer closes,” it can also translate to distrust for your brand. 

If your offer is that good, put a closing date on it so that people really get the idea that it’’s a limited offer and will “rush” it.

Have different offers for different segments of your customers –

You know that all your customers are not the same, right? There are some that are “golden” customers because they can patronize you from morning till night without giving you any stress while there are those that need a little more convincing. 
Even aside from that, there are customers that patronize one time, those that won’t patronize but only refer you, some that patronize only when you have sales.

You can create discounts for first time customers only, people that buy above a stipulated amount, or even offer free delivery to people who buy a particular product.

It is important that you know the different kinds of customers that you have so you can create unique offers that will appeal to the different customer segments. Remember, not everybody is your customer and even within your customer base, not all offers will apply to all your customers. 
Gather your data and work with it to make the most out of your sales or offers.

Set a goal of what you want to achieve by giving that discount –

Nothing goes for nothing!

While you offer discounts to your customers, what do you get in return? I know you care about your customers, yes, but remember that a discount for your customer is a loss for you.

So what are you getting in return? What do you want in return? Have it clearly stated so that at the end of the promotional offer, you will be able to see if you achieved your goal or not.

It could be that you want more subscribers, more sales of a particular product, new customers (refer a friend and get a discount), more followers on social media (tag friends and win a product) – in any of these cases, be sure of what you want before you make an offer.

Check out what the competition is doing –

I know they say you should focus on your business but sometimes it pays to monitor your competitors and see what they’re doing so that you’re sure you are not heading in the wrong direction. 

No, you are not to copy them (there’s no crime in borrowing ideas) but notice what they are doing so that you can make appropriate changes to your business strategy where there is need to. However, that your competitor when giving a 30% discount does not mean you should do the same! Focus on your strengths to create a unique offer for your beloved customers.

Create occasion based discounts or sales –

Everybody is a little more inclined to spend more during festive seasons and holidays. Why? It’s just that happy feeling in the air that makes everyone more likely to spend. As a business, you should take advantage of this as much as you can.

Whether it’s Easter package, End-of-the-year sales, Clearance sales – adding a holiday name to your offer makes it more appealing and attractive to your customers so don’t sleep on it! In fact, a lot of customers actually expect to get discounts on these special occasions so if you don’t have one, you might even lose customers.

In all, discounts are great marketing tools because most people, (your customers inclusive) , love to save money! Use these tips to make better choices when creating discounts, promotions or sales offers so your efforts don’t go to waste. Because yes, it is possible to have many customers – because of discounts and what not – and still have your account balance telling you something different.

Remember to subscribe to get first hand notification when I make posts like this! Don’t forget to follow me on Instagram @auntyronke for daily updates. 

Leave a Reply to Jump on that trend! How to use online trends to drastically boost your sales – Aunty Ronke Cancel reply

1 comment

Meet Aunty Ronke

favour

I recently started my own small ankara business and it has been one tough ride!
So I thought, why don't I share my experience to make your ride smoother? Enjoy the ride!

Instagram

Instagram has returned empty data. Please authorize your Instagram account in the plugin settings .