If you’re looking to boost sales, discounting is a great method to do it. 97 percent of retailers surveyed said they utilize discounts as their primary pricing approach. Because of this, if you’re planning on running sales or discounts such as the American eagle discount at your store, it’s crucial to organize your promotions thoroughly and develop intelligent offers to fulfil your goals. Discounts can be implemented correctly if you follow the advice in the following sections.
Make a list of your goals and stick to it
One of the biggest mistakes you can do as a retailer is to apply codes for discounts such as the American eagle promo code without any thought. Make sure you have a specific goal in mind before launching a promotion or a sale.
For different purposes, different discounts are needed. It’s likely that if your goal is to increase the number of customers you already have, you’ll want to use more aggressive techniques like loss leaders or store-wide specials.
Determining why you’re offering discounts and how much of a discount to offer is easier if you have a clear idea of why you’re doing it in the first place.
Get the timing right before you begin
Timing is everything when it comes to discounts and special offers. Your conversion rates will soar if you send out promotions at the correct moment i.e. when your clients need them. The end of the month, for example, is a popular period for people to buy, so organize your deals around this time.
Make use of psychological pricing
If you don’t want to give away too much or damage your brand, you can come up with unique pricing and discount plans. Brands like eyeglasses retailer Rivet & Sway have done this brilliantly.
To encourage repeat purchases, the company developed a pricing structure that allowed customers to purchase one pair of spectacles for $169 while receiving a discount of $99 on each consecutive pair. As a result, Rivet and Sway might tempt customers to purchase without training them to wait for discounts.
Identify customer segments and create relevant offers
For example, if you know your consumer’s likes and dislikes, you can tailor discounts and offers to their needs. It’s important to segment your consumer base so that you may better target your marketing and sales efforts to each of them.
Setting up client profiles is one method of accomplishing this. Utilize customer profiles to decide the kind of discounts to provide based on their price sensitivity and buying patterns.
Promote impulse buys, upselling and cross-selling
Take advantage of the increased foot traffic by upselling or cross-selling in the wake of a discount. Encourage your employees to recommend new goods or upgrades to customers while they browse. Your employees will be able to recommend the best products for your customers if they know what you’re selling ahead of time.
Discounts can be a double-edged sword because of their effectiveness. Price cuts do draw customers, but they can also drive away profitable clients or bring in the wrong kind of customers if done incorrectly.