How to Drive Profit through the Correct Use of Offers, Coupons, and Discounts

Discounts and deals! Honey to our ears!

So they are to your customers too!

However, as much as offers can be maneuvered as a tool to attract leads and build customer loyalty, its overuse can end up in incurring losses to the business.

So, what are some ‘profitable’ ways in which you can give away offers?

1. Pre-launch Stage of Business / Product

If your business is at the pre-launch stage, or you have a new product to be launched, you obviously need to promote before you launch so that people get to know about it and would make purchases. Drive their interest to make purchases by using pre-launch offers.   

By doing that, you create a positive and attractive impression on your leads and existing customers about your business and/or product/s. Although by discounting prices you surely face a slight loss of profit, that loss gets covered by a return profit (in double, triple amounts) resulted from the increased purchases triggered by offers.

A perfect example for this is the promotion carried out by Nils Store on social media these days.

 

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Nils store is going to open a new branch in Kandy, and as a first step to attract and build a customer base in the Kandy area, they announced a ‘Guess and Win’ contest where people have to guess where in Kandy (the location) the new store will be opened. And three lucky winners are going to be offered 10k worth gift vouchers! And as at the time I’m writing this (1.10 a.m. today! Yeah, tough life!), 370 people have commented their guesses on Instagram, and 1.9K people on Facebook! Need I say more about the interest created in leads and customers even before the store is open?

2. Online / E Commerce Businesses

First-Time Shoppers 

Who wouldn’t love a shopping website which displays a ‘first-time shopper discount’ when they first visit an online store? They visit your website for the first time for a reason – because they’ve heard you’ve got the good stuff! Add to that positive impression by making the discount offer the first thing they see on your website. Believe me, that is sure to tempt them to buy SOMETHING! Popular shopping sites like YesStyle (offers 10% OFF the first order), Ali Express ($4 coupon for new users) use this strategy to attract leads and make them loyal customers. This first impression created by you drives profit to the business in the long run as you build a loyal customer base with these strategies.

 

 

(Also, to spice things up, offer may be another – smaller – discount if they subscribe to receive your emails/newsletters)

Existing Customer 

Make sure they stay! Make sure they not only purchase, but also bring in other customers too! Kill two birds with one stone. More than hearing from an actor/actress on a TV advertisement , we tend to believe what the people closest to us say. It’s a fact. So, if you want to attract customers who will surely purchase from you, spread the word through your existing customers. Trust me, it’s an investment that you won’t ever regret. Offer your existing customer a discount or any kind of offer for referring their friends, this will surely strengthen the bond between you and your loyal customers. Make it even better by making available an offer for the person referred too!

 

 

Slipping-away Customers

Customers with many items in their shopping carts for months but with no progress into purchasing are not rare. Turn these abandoned shopping carts into profit! Present them something to come back happily to! Like 10$ off the total amount

3. Physical Stores

Weekly / Monthly / Seasonal Offerings

Keep your customers coming back to the store! At a time when technology plays a main role in our daily lives, the necessity of your business or brand to engage with your customers through technological means is not a fact to be repeatedly emphasized. Remind them through targeted SMS campaigns about the monthly offers so that they won’t miss the chance! Words like “discounts”, “promotions”, “sales” are like magic words – they have the power to attract people. Use them!

 

 

Pizza Hut carries out weekly and monthly promotions and they make sure their customers are notified / reminded of it by sending SMS campaigns.

Also, when the ‘Month of Reading’ approached, book stores like Sarasavi promotes discounts because the sales go higher in the season. The same goes for hotels, resorts etc. which offer discounts when it’s the season!

Influencer Offers 

Businesses which offer services / products mainly offline – such as hotels, restaurants – might lack reliable customer reviews compared to online stores. And the trend now (mind you, it’s infectious!) to overcome that downside is to spread the good word on the larger millennial platform of social media through influencers. Lots of physical businesses partner with social media bloggers, vloggers, celebrities etc. where they offer these influencers an opportunity to experience their product or service for free, so that they will review and promote the business on their social media platforms which have thousands (or millions!) of followers. Almost all the time, this review comes with a ‘promo code’ or some kind of option where the social media followers are able to use that promo code to enjoy that product / service with at a discounted price.

 

 

Nice, huh? Discounts, Promotions, and Coupons can do much more than you think! If used correctly, they can drive immense profit to your business.

(Oh by the way, if after reading this you can’t wait to announce some offers from your business, let OfferPanda make sure people get to know about them.)

 

 

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