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Want to save more? Use our Adhira Boutique coupon. Don't eye it any longer. Top Searches Get Coupons for Habitsummit. Be budget savvy with this great offer from Adhira Boutique! However, as effective as they are, discounts can be a double-edged sword.
While slashing prices certainly attracts customers, executing discounts the wrong way could end up killing your profits or enticing the wrong types of shoppers i. Go through the pointers below for some tips and ideas on how to implement discounts correctly. Blindly implementing discounts is one of the biggest mistakes you can make as a retailer. Before running a sale or offering a hot new promo, see to it that you have a clearly defined purpose for doing so.
Are you doing it because you want to gain new customers or are you looking to engage existing ones?
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Are you looking to get rid of excess stock? These are just some of the questions you should answer when crafting your offers. Different objectives call for different types of discounts. More on these tactics below. Clearly defining your purposes for discounting will enable you to make decisions on what products to put on sale, when to do it, and most important, how big of a discount to offer.
Take the time to segment your customer base so you can market and sell to them accordingly. One way of doing this is to set up customer profiles. Create profiles outlining the price sensitivity and shopping habits of different customers and use them as tools to determine the kinds of discounts to offer each shopper type.
Below are some sample customer profiles that you can create:. Make use of a robust customer management system that gives you a history of what shoppers bought from you. Are you a Vend user? Our customer management software makes it easy to build and manage customer lists, so you can view, sort, and group shoppers according to factors like purchase history, balance, and location.
When it comes to discounts and offers, timing can be just as important as relevance. Sending out deals at just the right time i. This is why you also have to pay attention to when shoppers are buying from you. For instance, if you have a lot of customers who buy at the end of the month, then schedule your offers around that time. Also remember that the question of when a customer looked at a product or bought something can provide insights into what they might buy next and when. For example, Blue Nile, an online jewelry retailer, times its wedding band emails based on its estimates on when customers got engaged.
See if you can do something similar in your business. Another way to offer deals without giving away too much or hurting your brand is to implement creative pricing and discount strategies. The right discount method will vary, depending on your business, products, and customers.
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The best way to figure it all out? Implement various tactics and see what works best.
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As Craig Simpson, a contributor at Entrepreneur. A good way to protect your margins while implementing discounts is to set conditions. Rather than running blanket promotions e. Another condition could be to offer discounts exclusively to customers who are part of your loyalty program.