Looking to generate revenue and improve brand power? Offer a discount! Discounts are a great way to increase sales and place you one step ahead of the competition. While this tactic does not work for everyone, here's a few ways offering a discount could generate more revenue for your business.
Improve Sales Revenue
Everybody loves a discount; so whether they are in the form of paper coupons or online codes, they are sure to draw a crowd to your business. This increase in traffic will more than often lead to sales. But what’s even better is the fact that as people use your coupon or discount code, they are likely to fish around for more stuff offered by your business, and this leads to more sales.
Spread Brand Awareness
Nothing make people remember you like a discount. Not only will your brand be brandished in bright colors at the back of their minds, but also even if they do not take advantage of your discount, they are likely to spread the word to a friend who will. This only spreads the word and value of your brand further--to the benefit of your business.
Increase Fans and Following on Social Media
Nobody minds saving a dollar every now and then. When people come across a business that offers great discounts they are likely to look them up on social media and follow them so that they never miss an update. When that happens, all posts from your business’ Facebook page will show up on their newsfeeds and this increases your reach on social media. This reach is increased even more when these fans share posts about your discount with their social media friends and network.
Build a Strong Reputation
Regular discounts are a great way to build a great relationship and reputation with your customer base. People love buying products and services from businesses that offer regular discounts like military discounts and senior citizen discounts. Over time your business will gain a favorable reputation for being socially responsible based on the way they do business.
Creates Space for New Inventory
To make room for new inventory, you can clear out some of that old inventory that is gathering dust in the store room by offering them out at a discount. Set up a weekend sale where you offer a 20% discount on the things you are trying to sell. This is an excellent way to:
You can even get creative by offering your returning customers a loyalty reward program that grants discounts to frequent customers. This establishes a long-term relationship with your existing customer base--and besides, your loyal customers deserve it.
Helps You Meet Your Sales Goals
While offering discounts may decrease your profit margins for a bit, they can help you meet your sales goals which is key to remaining profitable. End of the season or end of the quarter discounts should be offered at least four times a year.
Don’t be fooled into thinking that discounts hurt your revenue. More likely than not, they do the opposite and also accomplish many other things as well like increasing brand awareness, forming long lasting relationships, and creating loyal customers.