The discount is one of the tried and true measures that can drastically increase your visibility as well as your conversion rate. However, it must be properly used in order to work for your business. There are some questions that you need to ask yourself before you just start giving discounts to random people for random products.
How Can You Expect People to Respond to Your Promotions?
For the most part, you must first set a value for your products in the mind of your customer before you can actually expect a discount to work. If people believe that your product is only worth three dollars, then giving a discount that makes the price of that product four dollars will not benefit you at all. You will need to set a value in the mind of your customer at something higher than four dollars.
Your promotions can sometimes give you a great deal of information about how people think of your business. Take note of the way that people respond to your products when you offer your promotions.
What Can You Expect to Get From Your Promotion?
You should set the standard for your ROI before you start giving out promotional discounts. This will help you to determine if the promotion was successful or not. You should also keep your expectations in line. What have previous promotions garnered you in the past? Do you have any benchmarks based upon the performance of promotional efforts from your competitors? Make sure that you tally all of this information in a quantitative way before you prematurely say that your program did not work for you because it did not bring you millions of sales instantly.
Are You Giving a Discount to the Right People?
You do not have to promote your products at a discounted price to everyone; as a matter of fact, you should avoid this strategy. The only people who really deserve discounts are our customers who are loyal and social leaders who can discuss your products in their social circles. This will save you money and legitimize your promotion by giving meaning to it – people who receive it will actually feel as though they are special.