Who doesn't like discounts? You like it too, right? How many times have you been tempted to end up buying things you don't really need because of a discount program?
Yes, discounts are indeed a powerful marketing weapon. To grow customer loyalty while attracting new customers, discount programs need to be carried out occasionally.
But remember, discounts are only a short-term strategy and are only done occasionally with the aim of increasing sales, especially when sales are declining. It is also important to socialize the discount program in your shop so that many people see, know and are interested in buying.
There are several specific reasons why discounts need to be used, even by micro businesses and small businesses.
Increase Visits
This applies to both online and offline businesses. Provide a limited time period so that customers feel the need to take advantage of this discount program immediately. Increasing visits is not only useful for making products sell at discounted prices, but also the opportunity for customers to see regular products becomes greater. As big as the possibility that they are interested in buying it.
Increase Sales Volume
One row of two or three islands is exceeded. With a discount program, the possibility of consumers also buying regular products other than products at discounted prices is also higher. In this way, overall sales will increase compared to without the discount program. So, always remember not to just focus on discounted products, but also pay attention to your regular products.
Meeting Profit Targets
Many factors cause sales to become sluggish, while profit targets must still be met. Discount programs can be a way out. Make sure you have done careful calculations so that the discount program can actually bring in revenue, not just increase shopping volume.
Strengthening Bonds with Customers
Thank you to loyal customers doesn't always have to be a gift. You can also give it through a discount program. If more and more customers feel comfortable shopping continuously at your store, it is not impossible that they will promote your store and products voluntarily.
Using Stock (Warehouse Clearing)
When a new product is available but the old product is not out of stock, what should you do? Sell at a discount. Place discounted items at the front of your shop to make it more visible. Remember to set the discount amount carefully so it doesn't interfere with your profits.
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Choose the Most Suitable Discount Type
There are many types of discounts that have recently become popular. Qasir summarizes it so you can choose according to the type of business, budget and consumers that suit your business.
1. First Order Discount
First order discounts are a method that online sellers often use these days. In short, you offer a new discount to new customers for their first purchase from your store. Agar pelanggan tidak pergi setelah melakukan pembelian pertama, kamu perlu kombinasikan dengan kualitas yang terjaga konsistensinya serta layanan pelanggan terbaik. If you succeed in maintaining all of this, you are guaranteed to be able to win customer trust and loyalty.
2. Diskon BOGO (Buy One Get One)
The Journal of Marketing found something customers like more than price cuts, namely free stuff. Simply by using the word free in your promotion, you can encourage more buyers to buy. While “buy one, get one free” is numerically equivalent to a 50% discount on two items — the former sounds much more tempting to customers.
The main reason for buyers is because buyers hate having to count. Buyers don't want to calculate how much the price will be after a 20% discount or how much their order will be if they want to use a discount coupon with a certain value. With BOGO discounts, there's no math! What's available: Free!
3. Postage Discount
According to a Business Insider study, high shipping costs are the number one reason online transactions fail to complete. That's why offering free shipping discounts can help win new customers. To avoid losses, you can set discounts or free shipping by determining the minimum order value threshold.
4. Bundle Discounts
Bundle discounts are one way you can get new customers to try several of your products at once. This discount is also useful for helping products that are less popular. It's not that the product is bad, but people may not be "amazed" about its value. With special prices for buying bundles, customers will feel like they are not losing too much by trying several products at once.
5. Discounts with Period
By providing a discount program at a specified time, for example "Get a 50% discount on all items on every purchase from 12.00 – 18.00", or perhaps a "Friday Sale" program, you can create a feeling of worry in consumers if they don't buy your product immediately. But make sure the discount is significant, or use best-selling products.
6. Post Barter Discount
Giving a 20% discount to customers who post photos of previously purchased products on social media (Facebook, Instagram, Twitter, etc.) accompanied by words that can attract other customers to buy the product is a type of promotion that has been implemented a lot lately. Buyers will also have to mention the social media account where they sell the product. This method is effective for developing brand awareness among consumers and potential consumers.
7. Birthday Discount
Giving discounts to customers who are having birthdays can create a close and personal impression between your brand and consumers. Buyers only need to show their identification card (KTP). Promotions like this are usually implemented in many beauty clinics, restaurants and other places. Can also be applied to those whose birthday is in the same month as your shop, or with national holidays.
9. Cashback Discount
Giving cashback is actually the same as discounts, the only difference is that the discount is given in the form of a discount in the form of a percentage or price cut, while cashback can be in the form of rupiah. Use this method for large purchases so that consumers are motivated to increase their basket size.
10. Member Discount
If you usually use a membership card for this type of discount, you can also do it by “bringing 5 receipts for a 50% discount on the 6th order”. Programs like this are a promotional strategy for brands to retain their customers. You can also try it to maintain customer loyalty.
Mistakes to Avoid in Setting Up a Discount Program
Be careful, don't let your product sales depend on discounts! Many manufacturers or sellers cannot sell without a discount program. Why is that? To answer this, avoid the four most common discounting mistakes:
1. Discounting without a clear purpose
Set concrete goals, if you can set this, you will be more firm in stopping the discount program when the goal has been achieved. Don't be lulled by booming sales during discounts. It is precisely sales when there are no discounts that should be the main concern.
2. Forgetting to consider profits
More frequent sales do not necessarily equal higher margins, especially if the sales are based on promotions or discounts. There are indeed costs spent on promotion. But everything has to be calculated so that you don't lose out, but still MAIN.
3. Discounting too often.
Don't let customers think, just buy it later, "Anu" shop will definitely give a discount. Just wait. If customers underestimate the discount program you created, it means you are giving discounts too often.
4. Failing to convert new customers into loyal customers.
There are discounts to attract new customers, there are discounts with the aim of increasing loyalty. Intersperse discount programs in your store so that old customers don't feel neglected.
Set Discounts Easier with the Qasir Application
Qasir now comes with the Manage Discount feature. With this feature you can manage your discount just once to apply it automatically for a period that you can set according to your needs.
With the Manage Discount feature, you will have the freedom to:
Create a percentage discount
Create a nominal discount
Setting the discount period
Create a discount schedule
Set the minimum purchase
Monitoring discount reports
Set multiple discount models at once
To be able to take advantage of this feature, first activate the premium feature on the Home page of the application. You only need to pay once to use the Manage Discount feature. If you don't have the Qasir application for your business, click here to download. FREE!