Discount Pricing Strategy: An Overview
A discount pricing strategy refers to the practice of offering products at a lower price than their original value for a limited period. This strategy encompasses various tactics such as sales, discount codes, cashback, and bundles.
Benefits of a Discount Pricing Strategy
Implementing a discount pricing strategy serves two primary purposes: garnering attention and driving sales. By offering discounts, you can attract customers' interest in a particular product. For instance, introducing a new item on sale or promoting a limited product run can generate curiosity and engagement. Furthermore, discount pricing strategies can boost both the number of sales and the average order value (AOV). Examples include buy one get one free (BOGO) promotions or discounts for reaching a specific spending threshold.
Getting Started: Ideas for Your Discount Pricing Strategy
To kickstart your discount pricing strategy, consider the following ideas:
Special Offers for New Customers: Provide new customers with a code for savings or a free gift upon their first purchase. This added value can be the deciding factor in converting them from mere visitors to loyal customers.
Reward Loyal Customers: Show appreciation to your loyal customer base by offering exclusive discounts and special offers. By incentivizing repeat purchases through discounts and sales, you can encourage customers to continue choosing your products. Sending unique discount codes to customers on your mailing list is an effective way to bring them back for more purchases.
Increase Sales during Holidays/Special Events: Utilize scheduled discounts to infuse a sense of urgency into your sales strategy, aligning them with major or minor holidays and events. Prominent examples include Black Friday and Cyber Monday.
Use Early Bird Discounts for New Products: Plan a discount pricing strategy to coincide with the launch of a new product. You can bundle in a free gift or offer an exclusive discount to generate more sales and create excitement among customers.
Custom Offers: Gain insights into the performance of your ads by offering unique discount codes, such as "Facebook20" for a 20% discount on orders. This approach enables you to track the origin of your customers and determine which ads yield the best return on your marketing investment.
Leveraging Discount Kit for Effective Discount Strategies
Discount Kit offers valuable resources to help you optimize your discount strategy. It introduces three new discount types that allow you to provide customers with greater value compared to your competitors:
Upsell Components: With Discount Kit, you can captivate customers' attention right before they check out by showcasing upsell components. Highlight your latest deals or newly released products to encourage additional purchases.
Volume Discounts: Encourage customers to buy in bulk and save money with Shopify volume discounts. By displaying discount tables on the product page, you can motivate customers to purchase larger quantities.
Gift with Purchase (GWP): Reward your customers with free gifts and sample products using Discount Kit's GWP feature. Offering a complimentary item alongside your discount strategy can incentivize customers to spend more, ensuring they don't miss out on the opportunity.
Bringing It All Together
While Shopify provides several discount types and options, Discount Kit introduces new features and multiple ways to enhance your discount strategy, making it unique to your store.