As an online retailer, you know that in order to make more sales, you should include discounted Products as a marketing strategy. There are different options for discounts, which we will discuss below.
Lawrence & Hanson Review
Founded in 1886, lawrence and hanson is an electrical importing company. From home appliances to lighting, they offer a wide range of products for the home. To make buying electrical goods easier for you, they offer their customers a Sparky Plus loyalty program. You can redeem Sparky Points for everything from electronics to camping gear. Plus, with their Sparky Plus rewards program, you can even get a free annual bucket list trip!
The electrical wholesaler Lawrence & Hanson has an excellent history in Australia, with over 150 branches across the country and a global presence. The company offers quality products to customers across multiple markets. In 2019, the team comprised two members, senior marketing manager Rachel Raschilla and ecommerce manager Patricia Mota Almeida Goncalves. This combination of experience and knowledge is essential to the success of Lawrence & Hanson’s online store.
In addition to making more sales, discounts also attract new customers. It has been proven that when they save money, people feel calm and satisfied. It would be great for your customers to know that they can shop from your online store and save money at certain days of the week, month or year. In addition, when they receive a discount, consumers do not compare prices with those of competing brands and are therefore much more likely to buy from you again.
Although discounts reduce your income, it is good for them to be there because they can help you attract more customers to whom you can later sell goods at their regular price.
Set yourself a clear marketing goal for using the products’ discounts.
When planning on the discounts, it is good to know what you expect to receive from them. Here are some examples:
- Attracting new customers
Offer a discount for a limited time. In this way customers that have still not bought anything from you will be willing to try your product now, knowing that they are limiting their financial risk with this decision.
- Having more sales
With a discount on more products you can generally raise the sales at your store. You can plan a discount on certain products or to group products in bundles.
- Discount for loyal customers
The idea is to create a sense of customer privilege and trust in your brand, not just for attracting new customers or selling anyway. There are people who sign up in groups mainly because of discounts. They are searching everywhere in order to be the first to buy at a discount. On the other hand, you can offer such a discount for a certain period when you think they want to repeat the purchase. For example, if you sell a face cream that lasts for 3 months, you can offer it at a discount just before the end of this period. In this way you can remind your customers that their product is finishing and they need to buy it at a better price.
- Selling of old goods
Sometimes it is better to plan a discount on old or seasonal products, to clear an expired product, to free up space and funds for a new one, or to focus on those products that achieve better results. Here, the margin is not as important as the sale and release of funds.
Types of discounts that you can use in your CloudCart online store
- Packages discounts
Instead of reducing the price of products individually, you can group them into a common package with a lower price – for example, “Sale” or “Discounts”. The discount for packages allows for the sale of the same type of goods that have been on display for too long. In addition, you have the opportunity to sell a new product for the customer to try.
A successful marketing strategy is if you present a product package with one main and one additional product as free, when you have a larger margin for the other. Thus, the customer will be left with the pleasant feeling that he receives a gift for which he does not pay. For example, shoes with a cleaning sponge, eye shadows with an applicator and others.
- Volume discounts
This type of discount is a good way to clear the inventory or increase the average purchase value. The customer can pay a smaller amount for a product, however, if he buys a larger quantity of it. Usually, consumers are very happy with such a discount because they buy more.
- Holiday discounts
This kind of discount is suitable for products that can be soled around holidays like St. Valentines day, Mother’s day, Christmas, etc. They are repeating year after year and customers are expected to buy more during these days.
- Free delivery
Researches show that the free delivery adds value to the purchase and the other way around – the delivery price is one of the reasons for abandoned carts. Of course, with low margins the free delivery is not an option.
- Fixed discount on a product or a range
If your products have varieties, such as size, color or different material, you can sell only one variety of the product by setting a new, fixed price for it. This discount is appropriate in case you do not want to apply the same percentage or amount reduction to many products, or your business requires a product to be modified for a certain period with a new, fixed price for the product or variety. You will find more about this type of discount here.
- Promotional code (voucher)
Using the popular promo code or voucher is suitable for combining with a percentage or fixed discount, free delivery, gift wrapping, as an excuse for late delivery or another attractive reason for customers to buy from you. A good marketing strategy is to distribute a different promo code in each of the media you use, such as e-mail, Facebook, Instagram and others. This way you will be able to detect which channel works best for you and attracts more customers. You can also successfully use promo code to remarket to people who have liked the product.
Share in the comments what experience do you have with products’ discounts in your online store and expect more useful materials for more sales.