Boost sales with a discount promotion and how it impacts the customer experience

Maybe we should start this topic by looking at the chart below first!

Here is an analysis chart of US online shopping discount behavior in 2015. What are you thinking after seeing this chart? I'm curious if you guys have the same thoughts as me?

I seem to be seeing myself as a part of making up the numbers in that chart, isn't that funny? But I bet most of us when we want to buy something, we all try to find out if there is a promotion so we can buy it at the best price. So, we can see how important sale promotions are in promoting sales!

Most customers often like to shop or even wait for promotions to buy things. Many of them often shop more than expected just to enjoy a certain offer.

For example, at first you only plan to buy 2 items, but then you see that the store has a promotion program if you buy 3 or more items, you will get free shipping. And I am also one of them, many times I have bought more items because of such offers. That's why store owners are always looking for ways to boost sales with discount promotions.

Understanding that mentality of customers, store owners are also very smart when integrating offers at different times. The correct and effective application of discount types by Ecommerce store owners in combination with the use of smarty support tools for the implementation of sales promotions has brought many benefits and business efficiency.

Looking back at the chart above, we can see that 64% of customers often wait until the product they want to buy is on sale. Also, about 59% of buyers will search for applicable discount codes to buy products at lower prices, save money, etc. As a buyer, surely everyone loves promotional and discounted pricing, right?

How does sales promotion affect purchasing decisions?

Promotion is not only a tool to help attract customers but also contribute to increasing loyalty. These effects are related to product information, which affects customers' thoughts and evaluations about the discount program.

In terms of price, a discount can make customers very happy, but it can also negatively affect customers' perception of goods and services. Customers gradually assume that the actual price of the product is the promotional price, and in general, the normal undiscounted price is quite high.

In terms of quality, it can have a negative impact on customers' perception of quality because customers think that discounted goods and services are often of low quality.

However, not every information impact on customer perception has a negative impact. A reasonable sales promotion program will bring positive effects, when the seller clearly states that the promotional item is limited in quantity and time, customers will think that this is a good and popular product.

Discount codes, promotion influence buying decisions through customers' emotions, they will feel like a smart shopper when they find goods cheaper than usual. In addition, it also stimulates customers to discover and improve knowledge through trying new products and brands.

Becoming an important part that can’t be separated from all marketing campaigns, sale promotion is considered the fastest way to boost short-term sales and acquire more clients.

We can see that discounts have a big impact on customers' purchasing decisions in particular and on sales in general. The impact is positive or negative depends on how you implement it. So, take advantage to boost sales with a discount promotion in the best way.

The benefits of running a sales promotion.

As a store owner, you must have a mind to judge, evaluate and consider the market to come up with sales strategies, incentive programs, and promotions to attract customers. However, when implementing these marketing strategies, do you know all the benefits that you have and will achieve?

• Increase revenue in the short term.

In the short term, discount and sales promotion improve sales immediately or within a period when you launch the promotion. Not only old customers but also new customers will be attracted and want to take advantage of the opportunity to buy products at good prices.

Normally, they may be confused, undecided, or buy few products, but promotions will make indecisive customers able to decide quickly. At the same time, attract other customers to buy more products. Therefore, the store's revenue will increase significantly during the promotion period.

• Reach new customers and increase brand awareness.

Sales off campaigns are often combined by businesses, and they are also a part of marketing campaigns, helping customers know the business and expand the brand's coverage.

When your product is new to the market, it will be difficult for consumers to trust your company because they do not have much information and have not directly experienced the product quality.

Indirectly build your brand through meaningful and valuable gifts. Promotional gifts can be seen as a great catalyst to strengthen customers' trust in your business's products, making your promotional campaigns effective and successful.

Any PR - Marketing activities, too, more or less create influence and resonance for the consumer market. Therefore, confidently and boldly come up with ideas and investments for business gifts, sales promotion, partner gifts, cheap gifts to attract customers and build trust, start building brand image from the smallest gifts.

There are many ways to promote these sales promotions, and one of the most effective ways is to reach customers through social networks. Sharing information and announcements about promotions through free communication channels such as Facebook, Twitter, Instagram,...is always a simple and cost-effective way!

A good example of applying promotions to promote products can be mentioned in Panasonic. When launching the Lumix G80 Camera product, Panasonic implemented a free 1-year plan of Adobe Creative Cloud Photography for 2 months. And as a result, sales of Lumix products have been increased in all markets, in a short time (2 months) that many customers know about this new product line, and at the same time raise awareness about Panasonic cameras.

• Clear stock and end-of-season items as well as maintain ideal inventory figures.

Most products have a limited shelf life or fashion-related products are often seasonal. Therefore, products in stock, past the inventory life cycle or about to expire, need to be pushed to the consumption market promptly.

Out-of-season products that cannot be left to the next season such as food, food, etc. will be damaged and cannot be used anymore. Or clothes, shoes, accessories, will be out of fashion, out of trend and will not be sold if left to the next season. And when it's time to sell inventory, sales promotions are always an effective way to help store owners speed up the process.

The balance of inventory is an important job in the sales process, it not only minimizes the backlog, difficult to handle but also ensures the necessary product source to be able to meet the customers' demand in a sufficient and timely manner.

In general, depending on the nature of the product, the store owner needs to consider the appropriate handling of inventory to avoid waste and not affect the store's revenue.

• Enhance customer experience and satisfaction.

Surely everyone likes to enjoy even the smallest incentives. Therefore, sales promotions always bring customers a feeling of joy and positivity. They will feel lucky to find a discount voucher or freeship, etc. Since then, the experience they have when shopping at your store is also better, they are also more satisfied with the product and always feel that they are a special guest. What could be better to make your customers feel that way?

• Build and bond customer relationships.

Not all customers need to buy one type of item regularly. It may be a long time that customers haven't shopped at your store, but a small incentive program can make them think or feel the need to buy something.

At those times, customers may buy not because they need it, but just because they see and want to enjoy the incentives you give them. Programs for different customer groups are also a good idea to build close relationships or simply to keep customers' attention.

Types of sales promotions.

• Flash sale, limited-time price reduction, seasonal Extra Options offer.

Flash sale is a type of offer for a very limited time or seasonal promotion. This is a highly effective strategy to accelerate excess inventory. To enhance the urgency of the offer, a countdown timer feature is often used on a business website.

In email marketing, flash sale emails often bring higher transaction rates than other types of offers. In fact, the sales rate doubles every time there is a flash sale. The urgency and fear of missing out (FOMO) will affect consumer psychology, making flash sales an easy way to convert to sales.

Christmas, New Year, Black Friday, etc any occasion can be used to launch a seasonal offer. The key here is to notify your customers a few days before the flash sale takes place and emphasize the time-limited element. And the best way to inform is through social media and banners displayed on the website.

• Free trial/demo or free gifts

When customers still are wondering about a product, especially when it is expensive, giving customers a free trial or providing a free demo is always the best way to convince them.

What could be better if customers can experience your products before buying them? I still remember the times when I tried a new lipstick color, a new perfume flavor, and when I find it suitable, I will buy it immediately.

Free gifts are the same, who doesn't love to be given gifts? The free gift with purchase is a terrific way to thank clients for buying a specific item or spending more than a specified amount. You can either let the consumer choose the present or use giving to introduce a new product to your clients. The present you give is also an excellent approach to get rid of any remaining goods.

• Buy one get one.

Buy 1 get 1 free is also an effective form of promotion. This type of promotion can be applied in 2 ways: Buy product X get product Y free or buy 1 product will get xx% discount for the 2nd product.

Buy 1 get 1 free is often used to discharge inventory. If you have a lot of products that are selling slowly, boost sales with this discount promotion is a suitable choice.

However, buyers tend to be less "satisfied" with the promotion of buying 1 product with a % discount on the second product because the seller always chooses the second product as a lower value product. Therefore, the form of sales promotion buys 1 get 1 free shows a better effect than the promotion mentioned above.

• Free shipping or transfer for bulk orders or Wholesale buyers.

If you are selling online, do not miss the free shipping promotion. Shipping cost is one of the reasons why customers wonder, so break that barrier right away with a free shipping promotion. This promotion is very effective because it helps to increase the conversion rate, which means you will get more orders.

In addition, one of the main causes of online shopping cart cancellations when shopping online is higher than expected shipping costs, so free shipping is a great incentive to attract customers.

You should think about free shipping, transfer, or other promotions for wholesale customers because that is a source of potential customers. If they are satisfied and come back in the future, they will bring many other large orders for you.

However, businesses need to consider because the application of free shipping will sometimes increase costs and affect profits. But this offer will attract more new customers, it's a good way to boost sales with a discount promotion. Once they have made a purchase, these customers will become regular customers if cared for properly. Think about the total lifetime purchases a customer will make in the future and how it will shape the success of your business.

• First purchase coupon/ Birthday voucher/ Special Occasion voucher.

This is also one of the most popular types of promotions today, such as a 10% discount voucher for first-time customers, a 20% discount voucher on the occasion of the store's birthday or a special holiday, etc. The value of the voucher will depend on the store owner's regulations, usually a direct x% discount on the value of the product/order.

With this type of promotion, you can offer different discounts for each item or apply to the whole store depending on sales goals. Customers will also feel more confident in the promotion when they see different discounts and can freely choose products with a suitable price.

It can be seen that promotions play a significant role in today's marketing strategies. How to boost sales with a discount promotion is also gradually becoming a concern of most store owners. Applying for promotions properly and appropriately is not only brings good revenue to the store but also many benefits and satisfaction to customers.

If you are thinking of how to create attractive promotions, please refer to our Promotion Pro module. It can help you create any promotions you want to attract customers, besides it is also a great assistant for your business on your marketing campaigns.

It's time to say goodbye. We hope you find this article helpful, have a nice day and see you next week!