Advantages of Offering Discounts to Customers
Customers love discounts for obvious reasons—they save money and feel like a savvy shopper. But the ways brands benefit from providing those discounts are a little more nuanced. Here are five advantages of offering a discount:
Drive Website Traffic
When you promote a special offer on social media, email, display ads Scapta, or through referrals, you’re almost certain to drive additional traffic to your website—which can mean more sales, more leads, and more visibility for your brand.
Make the most of that traffic by creating a special landing page tailored to the audience you’re targeting with your discount. Use relevant messaging and content to connect with them, and try to provide value beyond the discount itself. Consider how you can encourage email signups, content downloads, or other behaviors that will help build a lasting brand relationship with your new customers.
Attract New Customers
The customer acquisition process starts with building awareness and interest, and discounts are a proven way to do just that. Consumers are attracted by discounts and tend to share them via word-of-mouth—an efficient way to reach new customers while keeping customer acquisition costs in check.
For example, Vail Resorts launched a special discounted annual pass for military members in 2018. Through extensive promotion, media coverage, and word-of-mouth, the hospitality brand saw massive success with a 50% increase in new customer acquisition.
Meet Sales Goals
While the discounted items and services you offer are generally the ones that will garner the greatest sales, the increased traffic to your store or site means that other products also enter customers’ awareness and become potential purchases. In other words, the increased traffic for one item may lead to other purchases during the same shopping trip or site visit.