As humans, do we ever settle for what is given to us? We strive to add our own elements to get what we feel is truly valuable and at the best possible bargain. Discounts are those subtle yet powerful nudges that drive people to think that their choices are justified.
Let us uncover the exciting world of Discount Advertising in E-commerce and practical solutions to apply to your business.
Discount Marketing or Discount Advertising involves promoting your products or services through special offers, deals, or price reductions. It attracts potential customers who are looking for great deals. Customers who have a positive experience with your discounted products are more likely to become loyal patrons, returning to purchase at full price in the future. They may also spread positive word-of-mouth, attracting new customers who value both quality and affordability.
There are multiple reasons why E-commerce businesses should implement Discount Marketing in their strategy. Here are the top 4:
With discounts, you can attractively capture the attention of potential customers. After all, who does not like an enticing offer over products they want in a competitive market? When customers spot discounts, they are more inclined to visit your online store, explore your products, and make a purchase. It serves as a powerful magnet, drawing them towards your virtual doors.
The primary objective of any E-commerce business is to generate sales and increase revenue. Discount Advertising catalyzes achieving this goal. By offering attractive time-sensitive discounts, you create a sense of urgency and motivation for customers to make a purchase. This not only drives immediate sales but can also lead to repeat purchases and customer loyalty.
A perfect example for this would be BoAt, the D2C audio brand. Their strategic use of discounts, like the “BoAt Black Friday Sale” offering up to 50% off and the “BoAt Diwali Sale” with discounts up to 70%, led to substantial sales boosts of 200% and 300% respectively.
Caption: BoAt regularly uses Discount Advertising strategies to boost its sales.
Discount Advertising can help to increase brand awareness by getting your products in front of more people. When customers see your products at a discounted price, they’re more likely to remember your brand and consider buying from you in the future. Hence it is an excellent strategy for customer acquisition and retention. For new customers, a great offer can act as an introduction to your brand, encouraging them to give it a try. For existing customers, discounts can foster loyalty and incentivize them to continue their patronage, fostering a long-term relationship.
Discount Marketing can be a strategic tool for managing inventory. It allows businesses to clear excess stock, make room for new products, or capitalize on seasonal demands. By offering discounts on specific products or during specific periods, businesses can ensure efficient inventory turnover and maximize profitability.
Pro Tip: Use the Rule of 100 for Discount Marketing. For products priced above 100, display the discount with a rupee sign. For items below 100, use a percentage sign. This strategy maximizes the perceived value and appeal of the discount to customers based on your product prices.
Must Read: What is Minimum Order Quantity?
Now that we’ve established how a well-planned Discount Advertising strategy can supercharge your business, let’s explore some foolproof methods for implementing it effectively in your E-commerce venture.
BOGO (Buy One, Get One) is a smart discount strategy that entices prospects to click the “Buy Now” button. With BOGO, customers can purchase two of your products at a higher price, essentially benefiting from a bundled discount. This promotional offer groups together multiple items at a reduced price, allowing customers to save money and gain added value compared to buying each item separately. BOGO is a beloved tactic in E-commerce as it boosts sales and helps clear out soon-to-expire inventory.
Juicy Chemistry, an organic skincare brand, effectively targeted shoppers with BOGO (Buy One, Get One) discounts. They offered BOGO deals on categories like ‘serums’ and ‘customer favorites’.
Google has become the go-to search engine for finding answers, making it essential for E-commerce businesses. Utilizing Google My Business (GMB) allows you to feature your business to potential customers and create connections through exciting offers. GMB updates quickly and reaches customers at the right time while offering the ability to update product offers for free.
To publish an offer post on GMB, follow these specifications:
Image format: JPG or PNG
Aspect ratio: 4:3
Photo size: 1200px x 900px recommended (480px x 270px minimum), up to 5 MB each
Video specs: Minimum 720p resolution, up to 30 seconds long, and 75MB per video.
GMB offers are valuable for E-commerce because they capture attention and entice potential customers when they search for businesses like yours.
Research on flash sales is clear: they have helped several businesses and the e-commerce world grow significantly. According to research, Amazon made quick development in only 3 years of its dispatch due to happy deals.
Flash sales are like fireworks in the e-commerce world, lighting up the sky and capturing the attention of eager shoppers. By offering a limited-time, exclusive discount on select products, you create a sense of urgency and scarcity that drives customers into a buying frenzy.
But here’s the secret sauce: Flash sales aren’t just about discounts; they’re about creating an experience. Craft compelling marketing messages, leverage social media to spread the word, and build anticipation leading up to the sale. Remember, timing is everything – choose a strategic moment to launch your flash sales, such as a holiday or a special event.
Harness the psychology of scarcity and urgency to drive conversions. Emphasize the limited-time nature of the offer, highlighting the exclusivity and the fact that it won’t be available forever. By triggering a fear of missing out (FOMO), you can tap into customers’ natural inclination to act swiftly and seize a good deal.
Also, align your flash sale discount with your overall brand image and values. Maintain consistency in your messaging, visuals, and tone of voice to reinforce your brand identity. Whether you adopt a playful, luxurious, or minimalist approach, ensure that your discount aligns seamlessly with your brand personality and resonates with your target audience. Here is an example of ‘Flash Sale Campaign’ by Ajio
ProTip: Before launching your flash sale, double-check your inventory levels. Running out of products prematurely can lead to disappointment and negatively impact your brand’s reputation. Also, Prepare in advance to handle the surge in orders during the flash sale. Aim to ship products as quickly as possible, ideally within 24 hours.
Must Read: E-commerce Advertising Campaigns To Get You Inspired
Lifestyle discounts are offered to customers based on their personal life choices. For example, a clothing brand might offer a discount to customers who are members of a gym, or a food delivery service might offer a discount to vegetarian customers.
Swiggy offers multiple discounts for people looking to eat healthy and guilt-free.
D2C E-commerce founders offer lifestyle discounts for several reasons. Firstly, these discounts attract new customers who resonate with the brand’s lifestyle-oriented offerings. Secondly, such discounts foster customer loyalty by consistently providing savings on relevant products. Lastly, lifestyle discounts drive sales as customers are more inclined to make a purchase when a discount is available for their desired products.
In today’s competitive online marketplace, attracting new customers is paramount, and offering exclusive discounts to first-time shoppers is a highly effective strategy. These discounts create excitement and incentivize potential customers to make their initial purchase, increasing conversion rates and introducing them to the brand’s offerings.
To enhance the impact of these discounts, you can establish clear terms and conditions, streamline the redemption process, and personalize the experience to foster a sense of value and encourage ongoing customer engagement.
ProTip: You can use the rule of 100 discussed before to offer a percentage or value-based discount on your items. You can even apply for this promotion while the customer adds an item to their cart.
For example, the semi-permanent hair colour brand Paradyes offers 10% off for first-time shoppers.
Targeting new and existing customers with discounts is important, but what about those who visit your website and leave without making a purchase? An exit intent discount offer can help convert these customers and prevent them from leaving. There are several ways to implement exit intent offers, such as offering newsletter subscriptions, interactive spin-the-wheel games, or limited-time discounts on abandoned carts.
To maximize the effectiveness of your exit intent discount offer, create a compelling offer and consider personalization based on the visitor’s browsing behaviour or interests. For instance, if they showed interest in a particular product, offer a discount specifically for that item.
Consider this cart discount offer. Not only is it strategically timed but the text encourages people to believe that the power of choice is with them and that purchasing the product will be a good choice. Here is an article on how you can use personalization to boost your online sales.
Imagine this: you’re browsing online, unsure about making a purchase, when suddenly, you come across a cashback offer that promises to put money back in your pocket. It’s an irresistible deal that’s too good to pass up.
Cashback offers are designed to create a strong bond with customers, boosting repeat purchases. To create an exceptional cashback offer, make it stand out by offering cashback on specific products or categories, giving customers the chance to earn a percentage of their purchase back. This taps into the psychology of perceived value, motivating customers to make the leap and buy.
Here’s an example of Paytm who offered a cashback of up to a hundred percent (!) and boosted both their sales and customer retention rate. They run regular cashback offers on several categories on their app and website.
Paytm regularly leverages cashback offers to boost their sales
When launching a new product or service, consider offering pre-launch discounts to generate buzz and anticipation. Exclusive access and discounted prices incentivize early adoption and create excitement. For example, a 15% discount on pre-orders for the latest watch can encourage customers to purchase in advance and build a loyal customer base.
The mobile phone E-commerce industry excels in leveraging pre-launch offers. Here’s a snippet from RealMe’s latest smartphone series launch offer.
No marketing is better than through the people themselves. Harness the power of word-of-mouth marketing with a referral discount program. Encourage existing customers to refer your E-commerce store to friends and family, rewarding them with discounts on future purchases. This boosts brand visibility and cultivates customer loyalty.
Earth Rhythm, for example, offers attractive discounts to customers who successfully refer a new customer.
Boost customer reviews and social proof by incentivizing feedback. Provide discounts or special offers to customers who write reviews, encouraging them to share positive experiences. Run social media giveaways where customers can receive discounts in exchange for sharing stories and posts on their personal pages. Leverage the influence of customer circles for effective referral marketing.
Collaborate with industry influencers on social media, offering exclusive discount codes for them to share with their followers. This partnership expands your brand’s exposure and gains credibility through the influencer’s endorsement. Sunscoop, for example, teamed up with travel influencers to provide limited discounts, positioning their sunscreen as a must-have for travellers. By combining the influencers’ reach with a time-limited discount, this strategy drives traffic and boosts sales for your E-commerce store.
Sunscoop collaborated with travel influencers on social media and offered limited-time coupons exclusively for the influencer’s audience.
Loyalty discounts can do wonders for a more decentralized E-commerce marketplace. Implement a loyalty program to reward and incentivize repeat purchases. Provide exclusive discounts, early access to sales, and special promotions to program members. By building an engaging loyalty program, you’ll cultivate a customer base that consistently returns, expands your brand’s reach, and becomes your greatest advocate.
Innisfree, a renowned Korean skincare brand, excels in running an acclaimed loyalty program to maintain a high retention rate.
ProTip: Unlock valuable customer data through your loyalty program! Analyze purchasing behaviour, preferences, and engagement to create detailed profiles. Personalize content, target ads, and plan sales strategies using this valuable information. Send tailored product recommendations and targeted emails that resonate with their interests. Your loyalty program is a goldmine of customer insights.
Free shipping and easy returns are crucial to minimize the drop-off rate in E-commerce. Shoppers are reluctant to pay high shipping costs, especially for small purchases. By providing free shipping and hassle-free returns, you eliminate barriers and enhance the shopping experience.
Myntra, for instance, offers free shipping on orders above a specific value and waives convenience fees for first-time orders that don’t meet the minimum value.
Boost repeat purchases with seasonal discount coupons or vouchers. During specific periods or events, such as festive seasons in India, offer discounts to customers for their next purchase. This incentivizes customers to shop again and seize the limited-time offer. Capitalize on other occasions too for launching discount campaigns. For instance, Nykaa hosts a monthly Pay Day sale, establishing a pattern among buyers to replenish their makeup stash each month.
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Reduce cart abandonment by offering discounts to customers who leave items in their carts. Send personalized emails or display pop-up messages when they return to your website, enticing them to complete their purchase with a discount incentive.
Shapescale effectively uses countdown offers to motivate shoppers to proceed to checkout. They employ a clever replacement for ‘No’ and dynamically show shoppers the potential loss in real-time if they don’t seal the deal. We also have a few ready-to-use abandoned cart email templates for you.
Boost sales and encourage customer exploration by offering product group discounts. Create appealing bundles that provide value and are priced lower than purchasing individual items. This strategy not only increases average order value but also entices customers to try different products from your store. Additionally, it helps manage inventory and clear out ageing stocks.
Take a cue from Earth Rhythm’s strategy, offering curated product groups for only Rs. 999. Shoppers see “3 products for 999” and think, “That’s just Rs. 333 per item, a better deal than buying them individually!”
Experiment with various discount offers like percentage-based discounts, dollar-off discounts, BOGO deals, or free gifts. Measure their impact on sales, customer engagement, and profitability to optimize your Discount Advertising campaigns.
Use email marketing, social media, website banners, and pop-up notifications to inform customers about your discounts. Craft compelling copy that highlights the benefits, creates urgency, and encourages action.
Set limits on the quantity of discounted items a customer can purchase to drive urgency and exclusivity. For example, offer a time-limited discount on a specific shoe model, but limit it to a maximum of two pairs per customer.
Offer personalized discounts or gifts during birthdays, anniversaries, or milestones to deepen the customer-brand relationship and increase repeat purchases.
Consider exit intent, emails, shopping cart prompts, and other placements based on your E-commerce platform and customer journey. Customize timing and placement to capture the attention of potential customers.
Develop an engaging social media campaign with captivating visuals, compelling captions, and relevant hashtags. Generate excitement among followers by teasing upcoming discounts leading up to the event.
Tailor your discount strategies to seasonal and yearly sales events specific to India, such as Diwali, Holi, or Independence Day. Offer special discounts, limited-time promotions, or exclusive deals that resonate with Indian customers.
Here’s a social media campaign by an Indian E-commerce brand that stood out.
Mcaffeine, a popular coffee-based skincare brand decided to build up excitement for Holi. They released a series of creatives on their social media inviting people to a Holi party.
Next, they posted about skincare essentials from their range for Holi and finally released a giveaway offer.
Because of their campaign build-up, their giveaway post got more engagement than the preliminary reel.
By implementing these Discount Advertising strategies and following best practices, you can effectively create brand awareness, encourage repeat purchases, recover sales, and optimize your overall Discount Marketing campaigns. Remember to continuously analyze the performance of your discount offers, refine your strategies based on customer feedback and market trends, and always strive to provide value to your customers while achieving your business objectives.
Looking to scale up? At ANS Commerce, we provide end-to-end E-commerce solutions to brands looking to enormously scale up. Book a demo today to explore how we can help you create impactful Discount Advertising campaigns.
