Technology is taking the mob to a revolutionary phase where Biotechnology, 3D Printing, Robotics, Nanotechnology, AI, BI, MI, Developments in Genetics, etc. is driving the world crazy. Concurrent to this is a market pattern that keeps evolving to stimulate buyers’ perceptions about products and services. Ecommerce discount strategies are framed to keep the shoppers engaged and change the dynamics of online services. Since it’s more of a customer-centric model, eCommerce website owners try to cater to all rudiments that an app should have. Building a positive outlook from initiation to conception is a part of understanding customer psychology.
How Discount affects Customer Psychology?
To answer this, let’s start with a question, ‘how do you respond to a discount’? Does it appeal to you? The Psychology of Customer + Discounts is more instance than we think. Discount affects Customer Psychology especially online customers in a positive way that propel them to take instant steps towards making the purchase or at least finalizing the decision.
“Grand sale”, “Festive offer”, Discount up to 60%”, “End of Season Sale, etc. are some of the discount hooks that can increase customer retention. You can introduce spin wheels, discount coupons, sweepstakes, giveaways or other countdown related hooks to retain customers.
The impact of discounts on customer psychology can be seen only through experiments done on the basis of the price-quality value model. Recent research revealed the hedonic benefits of discount promotions on the part of customers. Besides, discount manipulates savings, quality, and value perception of consumers and eventually Purchase intent. Psychology says that discounts should not surpass the optimal limit as customers consider highly discounted products of lower quality.
In general, discounts entice shoppers to get into a now or never deal that is highly irresistible in case they want to pay less and buy the item for sure. This is the reason, the brand should devise its Ecommerce Discount Strategies vigilantly to not to miss a single buyer.
Put yourself in the buyer’s shoes and see which offer would attract you best.
- Buy 2 Get 1 Free
- Get 20% OFF on 2nd Purchase
- INR 200 OFF on orders above 1000 INR
Which one are you more likely to pick? Probably the third one, as it is a more clear deal. Not everyone is good at calculations, avoiding the 2nd one.
In the first one, you have to make sure that you pick all the three products of similar pricing to make the most of the deal. The third says that the final payment will be 800INR, simple addition.
Ecommerce Discount Strategies you should think to bring the most attractive offers.
Different Types of Discount Offers to Create for eCommerce Customers
Discounts are highly relevant as far as customer behaviour and customer acquisition are concerned. There is an abundance of strategies that you can put into action to gain ground.
- Percentage Off: A simple reduction to some percentage of the original price.
- Buy One, Get One Offer: Buy One, Get One Free or Buy One, Get 50% Off the Next
- Threshold Discounts: Get 20% off a minimum spend of 1000 INR
- Rebates: An amount to be refunded to customers after they make the initial purchase.
- Free Delivery: Free shipping over a certain order amount.
- Free gift with purchase: Incentivize customers to keep them engaged and build brand image.
- Value-added offer and seasonal or periodic discount.
How to Use Discount Strategies Effectively?
It doesn’t just work; you have to make it work. Frame a strategy that may work for your eCommerce store and retain customers forever. Prepare an end goal before incentivizing the customers. For ex. Discounts won’t work for new visitors as they are hardly versed with your brand and might not be ready to make a purchase. To attract them or convert them you can run better offers that can ensue in making them enter your conversion funnel.
Marketing communication can be more critical than you think.
- Introduce Seasonal or Holiday Offers
- Shove New Visitors with Special Offers
- Set Rewards for Loyal Customers
- Catch Visitors Attention With Periodic Discount
- Create Custom Offer to Retarget Visitors
- Work On Reduce Cart Abandonment
- Offer Referrals Reward to Existing Customers
- Focus on Improving Subscriptions Discounts
- Re-plan Quantity and Package Discount
- Follow Up with Visitors Regularly
Plan out these Ecommerce Discount Strategies for your store and see what works for your at the best to make your visitors last forever. For instance, the few-items-left-tactic works at its best for almost every early bird and satisfied client. Set a clock on your platform and show them that time is running to prompt their response. These tricks should be shared with the developers offering Ecommerce Website Development Services so as to get them implemented the right way.