{"id":46304,"date":"2021-08-20T12:16:00","date_gmt":"2021-08-20T16:16:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=46304"},"modified":"2021-08-25T17:39:00","modified_gmt":"2021-08-25T21:39:00","slug":"discount-marketing","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/discount-marketing\/","title":{"rendered":"Discount Marketing: The Ultimate Strategy"},"content":{"rendered":"\n

What is discount marketing? How can you create effective discounts that make customers spend more?<\/p>\n\n\n\n

People love to save money, so creating an attention-grabbing discount is an effective marketing strategy. This discount can\u2019t just be an \u201cokay\u201d saving that doesn\u2019t really stand out. If it is, people will take advantage of the deal themselves, but probably won\u2019t tell others about it. For a discount to be worthy of sharing, it needs to be truly amazing.<\/p>\n\n\n\n

Find our guide to effective discount marketing below.<\/p>\n\n\n\n\n\n\n\n

Creating a Discount Marketing Strategy <\/h2>\n\n\n\n

The first way<\/a> you can give your product or service practical value<\/a> is to apply an amazing discount<\/strong>. Make your product appealing and shareable by making it a money-saver.<\/p>\n\n\n\n

But what makes a discount \u201camazing\u201d? In general, amazing discounts usually have three principles:<\/p>\n\n\n\n

  1. They represent a big saving.<\/li>
  2. Their availability is limited: for instance, the discount is short-term, or only for certain customers.<\/li>
  3. They\u2019re obvious: they\u2019re well-advertised and easy to find out about.<\/li><\/ol>\n\n\n\n

    Make Your Discount Big<\/strong><\/h3>\n\n\n\n

    For a discount marketing strategy to be amazing, it has to be big. For instance, a 5% discount will be perceived as an okay <\/em>deal, not an amazing one. It doesn\u2019t knock that <\/em>much off the original price, so it\u2019s not that attractive. A 50% discount, however, is a pretty big saving and is therefore more likely to impress customers<\/a>. <\/p>\n\n\n\n

    Customers are more likely to share information about a big discount for two reasons. First, a big discount is more helpful than a small one.<\/strong> To many people, sharing information about a 5% discount doesn\u2019t seem worth it. It\u2019s not going to save their loved ones much money, so what\u2019s the point in telling them about it? However, sharing information about a 50% discount is incredibly helpful\u2014it\u2019ll help the person\u2019s loved ones make a huge saving. Therefore, this larger discount is more likely to be shared.<\/p>\n\n\n\n

    Second, big discounts are remarkable<\/strong>. They\u2019re surprising, impressive, and exciting\u2014and therefore worthy of remark. As you learned in Chapter 1, people love to talk about remarkable things because they\u2019re a source of social currency<\/a>. They\u2019re going to share information about your remarkable deal because they know doing so will make them look good.<\/p>\n\n\n\n

    Provide a Reference Point<\/h4>\n\n\n\n

    When placing a big discount on a product, remember that people judge how good a deal is using the item\u2019s original price as a reference point.<\/strong> They like to know the precise monetary difference between the item\u2019s original price and its new price. <\/p>\n\n\n\n

    Because of this, simply stating that your product has a big discount\u2014for instance, putting a label on the product saying \u201c50% off\u201d\u2014might not be enough to entice customers. To get them truly excited about the deal, show how much more they could<\/em> have paid, not just what they will <\/em>pay. You can do this by making sure you clearly display your product\u2019s original price next to its sale price<\/strong>. This gives customers the reference point they need to determine whether your deal is good or not.<\/p>\n\n\n\n

    Diminishing Sensitivity<\/h4>\n\n\n\n

    Another reason why keeping your discounts big is important is the principle of diminishing sensitivity<\/strong>. This principle states that the exact same monetary discount can seem good or bad depending on its proportional relationship to the original price of the discounted item.<\/p>\n\n\n\n

    Take the example of a $10 discount. If the original price of the product was small\u2014say, $35\u2014this discount will seem like a good deal because proportionally, it knocks off a big chunk of the price. However, if this same $10 discount is applied to a product that cost $3500 originally, it\u2019s not going to seem like a good deal. Proportionally, this is barely a discount at all. <\/p>\n\n\n\n

    The moral of this principle is that you can\u2019t just place the same monetary discount on every product<\/strong>. For example, don\u2019t apply a blanket \u201c$10 off\u201d discount to all of your items. While this deal might work for cheaper products, it\u2019ll seem like a bad deal on more expensive ones. Instead, keep your discount large in proportion to your product\u2019s original price. If you don\u2019t, people won\u2019t be impressed by the deal, and they won\u2019t share it.<\/p>\n\n\n\n

    If you approach the process of devising a deal with the mindset that your deal needs to be big, you\u2019ll naturally avoid this issue. You won\u2019t even contemplate putting a small monetary discount on an expensive product.<\/p>\n\n\n\n

    Limit Availability<\/strong><\/h3>\n\n\n\n

    The second way<\/a> to make your discount marketing strategy amazing is to ensure that the discount isn\u2019t too readily available<\/strong>. For example, don\u2019t run a constant discount on a particular product. If you do, people will start to see the item\u2019s lower price as the norm and not as a great deal. The deal will no longer seem special.<\/p>\n\n\n\n

    Instead, find a way to make your discount scarce or exclusive. For instance, you could make it available for a limited time only, or a \u201cmembers only\u201d deal. Another option is to add a quantity limit per customer for the discounted item, so that their ability to purchase it is curbed. <\/p>\n\n\n\n

    Adding scarcity or exclusivity to a deal will make it look more valuable\u2014like a special opportunity that can\u2019t be missed. People tend to think that a deal must be really good if a store limits access to it. For instance, customers might think that a store has added a quantity limit to a discounted item because the discount\u2019s popularity has led to the product almost selling out. They may decide that if the discount is that popular, it must be good.<\/p>\n\n\n\n

    When people believe that deals are valuable in this way, they\u2019re more likely to tell others about them. Likewise, as you\u2019ve already learned, making something seem scarce or exclusive increases its social currency. This also makes people more likely to talk about it. <\/p>\n\n\n\n

    Make the Discount Obvious <\/strong><\/h3>\n\n\n\n

    The final attribute of an amazing discount marketing strategy is that the discount is obvious and easy to observe<\/strong>. Things need to be publicly visible if people are going to share information about them. Discount marketing is no exception to this.<\/p>\n\n\n\n

    The majority of discounts are stated quite obviously. Stores put stickers on items to indicate to customers that they\u2019re on sale. They display huge posters highlighting their best deals. <\/p>\n\n\n\n

    However, sometimes stores make the mistake of hiding the value of their discounts. A major example of this is store loyalty cards: cards on which people accrue points if they spend enough at the shop. They can then cash in these points to get discounted goods. <\/p>\n\n\n\n

    These cards do have practical value. They can save customers a lot of money. However, it\u2019s not easy to share that value with other people. Most people only find out how many points they accrue when it\u2019s printed on their receipt, and they\u2019re unlikely to show their receipts to other people. Therefore, the word about these cards never gets out. <\/p>\n\n\n\n

    A better approach to publicizing the value of store cards might be ringing a bell when people use their card to get a discount of a certain size\u2014for instance, $25 or over. Or when a customer arrives at the checkout, they could be greeted by a screen that tells them how much customers have saved today using their loyalty cards. These actions will show customers the practical value of the cards. They\u2019ll be more inclined to get a card and tell other people about them, too.<\/p>\n","protected":false},"excerpt":{"rendered":"

    What is discount marketing? How can you create effective discounts that make customers spend more? People love to save money, so creating an attention-grabbing discount is an effective marketing strategy. This discount can\u2019t just be an \u201cokay\u201d saving that doesn\u2019t really stand out. If it is, people will take advantage of the deal themselves, but probably won\u2019t tell others about it. For a discount to be worthy of sharing, it needs to be truly amazing. Find our guide to effective discount marketing below.<\/p>\n","protected":false},"author":12,"featured_media":17576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,104],"tags":[460],"class_list":["post-46304","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-marketing","tag-contagious","","tg-column-two"],"yoast_head":"\nDiscount Marketing: The Ultimate Strategy - Shortform Books<\/title>\n<meta name=\"description\" content=\"Discount marketing involves using discounts to provide value for your customer. 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