To discount or not to discount – that is the (retail) question. Offering discounts and other deals is a great way to reward your shoppers but can be a worrisome incentive for some retailers who fear that it can cheapen their brand and undermine their profits. While some year-round discounts and bargain freebies can diminish the quality of your brand and even attract the wrong shoppers, strategic discounts and offers can add real value to your brand and enhance the shopping experience for your shoppers.
Let’s look at four retail offers that won’t cheapen the quality of your brand.
1. Reward profitable customers
According to Bruce Kasanoff, co-author of Smart Customers, Stupid Companies, “When you sell products based on price, you are always at the mercy of your dumbest competitor.” Selling at a loss simply to keep up with every other retailer offering discounts can be a fool’s errand and one of the quickest ways to price yourself out of business altogether.
While it does make good business sense to offer discounts as a way of rewarding your shoppers or when getting rid of sales stock that won’t budge, it’s better to reward profitable customers as opposed to all shoppers who walk through the door. Rewarding top spenders or frequent shoppers with targeted discounts and deals can retain profitability as well as increase customer loyalty. It’s a win-win.
Hold VIP nights for loyal customers and notify them via eDMs. Free online design platforms like Canva allow you to design stylish graphics that create a sense of exclusivity around these VIP shopper nights, enabling you to offer a promotion with all the flair of an elite event.
2. Spend money to get money
As the saying goes, you’ve got to spend money to make money! Offering shoppers the chance to win a $20 gift card when they spend $200 or more in-store is a profitable incentive that can benefit you and your shoppers on several levels. For one thing, this sort of deal can encourage shoppers to spend more money in-store than they had planned to reach the $200 threshold. Sending shoppers away with a gift card burning a hole in their pocket is also a great tactic to ensure they’ll come back soon.
If offering free money to shoppers is not your cup of tea, another option is to offer a free gift with purchase. Whether you use old stock you no longer want or some of your less popular items, offering free gifts can add real value to your shoppers’ experience.
3. Using Point-of-purchase (POP) displays
If 53% of buying decisions are classified as impulse buying, how can retailers afford not to make the most of point-of-purchase (POP) displays? POP displays are found near to or on the cash register and often display new products, sales bundle items or less expensive products such as scarfs and lip-gloss. Leveraging POP displays is a strategic way to encourage more spending in-store without actually discounting items and losing out on profits.
4. Offer free shipping
With 58% of shoppers abandoning an online shopping cart because of high shipping costs, the prospect of free shipping can be a very appealing offer. What’s more, studies have shown that 58% of shoppers will purposefully buy more items to reach the free shipping threshold. While realistically you are trying to increase profitability for your brand, free shipping is another valuable way to reward your shoppers without cheapening your brand.
However, you can’t beat buying in-store. It’s the quickest way for shoppers to get what they want and it’s better for your bottom line and the environment – none of that unnecessary packaging and shipping.