Mastering the Psychology of Discounts to Make More Sales

What is the right strategy when it comes to discount marketing: presenting strong visuals, mystery offers, or the word “free” in your print ads?

Everyone is attracted to a deal, no matter the size. By using coupons or discounts, you appeal to shoppers in a unique way.

Incentives Prompt Action

When shoppers feel like they’re getting a good deal, they are excited and more willing to purchase.

Incentives also create urgency, build goodwill with clients, and dissuade people from looking for other offers.

Want to move more products? Experiment with discount tactics like these:

1. Dollar or Percentage Off

This discount type is the most widely used, simply offering a reduction on the original price, such as $50 savings or 40% off.

Discounts can be placed on specific products or applied to an entire order.

2. BOGO

Short for, “Buy One, Get One,” this discount type prompts customers to purchase additional items.

Examples of BOGO include, “Buy One, Get One Free” or “Buy One, Get 50% Off the Next Item.”

3. Quantity Discounts

Quantity discounts encourage shoppers to increase their order value to receive a discount.

For example, “Purchase two items and get the third free,” or, “Receive 30% off your $100 purchase.”

4. Rebates

A rebate is an amount that’s returned or refunded to customers after their initial purchase.

Often used for large-ticket items, the most common is a mail-in rebate. One example? Listing a price as, “$499 after rebate.”

5. Free Shipping

Increasingly popular among online business owners, this removes the shipping cost associated with any order.

Many merchants offer free shipping for a specific order amount, such as “Free shipping when you spend $25 or more.”

Test Discount Variations to Find A Formula for Success

Since there are so many ways to frame discounts, it can be helpful to test multiple variations of a discount to see which are most impactful.

For example, you could offer a segment of your VIP customers a percentage discount and another segment a dollar-off discount to test which discount best appeals to core customers. Or you can experiment with varying communication channels, length of promotions, or discount “add-ons” (like free shipping or store credit for a future purchase).

Here are some examples to consider:

Catherine’s Women’s Clothing: Private Offer

In an ad pitching swimwear specials, Catherine’s framed a gleaming yellow swim ring afloat a dreamy blue pool.

The overlaid text offered one of two choices: a “Buy 1 Get 1 Free Clearance Item,” or “Private Offer Up To $100 Off.” Catherine’s used imagery that transports viewers to a place they want to be, evoking an emotional fondness for swimwear. The bright floaty draws eyes to the deal, and the company wisely gave two sale options to accommodate the price points of individual customers.

J. Crew: Flash Sale

In a spread featuring outdoor apparel, J Crew positioned a yellow sailboat cruising the waves of a dark blue backdrop, using this pitch: “Smooth seas and clear skies – perfect conditions for a flash sale. Extra 30% Off & Free Shipping, Use Code: SetSale.”

For this flash sale, J. Crew took advantage of good sailing weather to create urgency and nostalgia that tied to real life. Because this ad catered to unique preferences and behaviors of a particular market segment, the piece moved beyond a sale into the emotional story of its readers. This, combined with a compelling offer (and clever coupon code), brings a winning combination.

Once you have a better understanding of your most effective offers, you’ll be a great position to mix up your campaigns and boost customer engagement.

Use Emotional Marketing to Win Customers

In 2014, an animated film titled “Super Amma” was created to teach mothers in rural India the importance of consistent hand-washing.

Because families had no running water (and typically only used soap when dirt was visible), changing mindsets was a daunting task. The solution? Health officials put together an inspirational animated film starring “Super Amma,” a mother who loved and cared for her son, eventually helping him grow up to become a doctor.

Dubbed “an extraordinary tale of an ordinary mother,” Super Amma used the powerful appeal of a nurturing mother to forge an emotional connection between regular handwashing and a mom’s desire to care for her children. Initially rolled out in 14 villages, the results were better than expected. Six months after the first campaign, 37% of families were regularly washing their hands with soap.

Emotional Connection Rules All

All of us understand the power of emotions.

They drive us to pursue dreams, keep us from making destructive choices, and can easily nudge us in a particular direction when we make decisions.

Marketers can use emotions like vital arrows when advertising a particular product or service. But to build an emotional connection with your audience, you need to understand what’s motivating your buyers. What are they hoping to achieve? What feelings are they searching for with your product or service?

According to MEG research, there are three key motivators that affect most buyers: trust, confidence, and empathy. How could you use one or two of these emotional triggers to move your core buyers?

Emotional Trigger: Trust.

Move Customer to Believe: “Acme Company is a company I can depend on. I trust that they’ll do what I say.”

Trust is a powerful motivator! Share hard facts, testimonials, stories, and convincing benefits to show prospects that placing their confidence in you is a worthwhile decision.

Slogan example: “You’re in good hands with Allstate.”

 

Emotional Trigger: Confidence.

Move Customer to Believe: “I have confidence that Acme Company has the expertise to meet my needs and the tools to do it with excellence.”

When seeking to sell a product or service, your goal is to convince buyers that your marketing claim is credible and so is your company. Move prospects from believing that your product brings results to believing it can bring results for THEM.

Slogan example: “Stronger hair, stronger you. For hair that shines with all its strength.” (Garnier)

 

Emotional Trigger: Empathy.

Move Customer to Believe: “Acme Company understands my present situation, and is there to walk me through purchasing decisions and service support after I make a commitment.”

It’s not about you, it’s about THEM. To make lasting emotional connections with customers, show that you understand where they are coming from and demonstrate how what you offer solves their problem.

Slogan example: “Make quitting suck less.” (Nicorette nicotine replacement therapy products.)

Use Print to Get to the Heart

Statistics show that emotional marketing campaigns are nearly twice as effective as those that have a rational focus, and print ads that generate an emotional response outperform other ads by a factor of 2-to-1.

When you recognize the key motivators of your audience, identify similarities among those who respond to your brand and speak to their desired emotional benefit.

By getting to the heart of your audience (causing prospects to buy-in to more than just the logical “result” of your product) you go from simply conveying a message to evoking a response.

A Beginner’s Guide to Successful Coupon Campaigns

Want to get more people to pull the trigger on a purchase?

Give them a push with perfectly placed coupons! Coupons have a built-in visual appeal and an innate call to action. A coupon with a limited time offer adds a sense of urgency in a customer’s mind for two reasons:

1. If they plan to buy something, they want the best possible price.

2. If they don’t buy now, it might be out of stock (or full price again) later.  

Why should you use coupons? Many reasons!

Coupon offers can make the difference between someone who’s browsing and a purchasing customer.

Coupon offers are also a major incentive to drive traffic to your website. Besides stimulating sales of existing stock, coupons also generate cross sales between products and can energize your brand.

Building a successful coupon campaign may take some trial and error. Here are several action steps get you started:

Start Small

The first step in coupon marketing is to track the performance of every campaign you launch.

If you run a small business, start by choosing one product and run 3-4 coupon specials from time to time. Feature the same product but vary the discount types, values, duration, and distribution methods. Experiment to see what works best for your business. From here you can carefully track and implement promotions that are consistent with your budget and are strategically aligned with your marketing strategy.

Set Goals

Set goals with your coupons.

Do you want to entice first-time buyers, increase purchase volumes, or get more traffic in stores? Without a clear strategy, you can’t measure your effectiveness or tailor your promotions.

For example: when appealing to new customers, an open return policy can prompt more people to buy. When upselling current clients, offering companion discounts (like buy one, get one 50% off) can be especially tempting. 

Highlight Cross Promotions

Almost every business has a niche, and coupons can help you expand influence in your corner of the market.

For example, camping outfitters that specialize in lightweight tents have customers who need compression sacks to carry them and portable camp chairs to accessorize. Having a coupon combo on all three items may entice shoppers to purchase more than one type of product.

Place Coupons Where Customers Will Find Them

How will you tempt shoppers to purchase: through direct mail, in your newsletter, or with an on-site purchase incentive?

Here are a few strategies for getting coupons in their hands:

  • Offer a $15 onsite coupon if a customer buys at least three products.
    Mail a $5 gift card that can be used if a customer purchases two items this month (spending a minimum of $50).
  • Offer an additional 20% off if a customer buys anything from the same product category within the next two weeks.
  • When a customer purchases an item for the first time, offer a 25% off coupon for those who leave a review or give their personal information. 43% of consumers will exchange their personal data with companies to save money through personalized promotions, discounts, or deals!

Remember, people buy with their eyes, so your promotion needs to catch attention. Need ideas? Our design specialists can help you generate a coupon that screams “use me!”

Spread the Love

Coupons can help almost every business type and size if you are intentional and consistent.

Coupons are highly visible and shareable, creating urgency and brand awareness. Best of all, everyone loves a deal, so a smart offer can go a long way in creating satisfied customers!

The Best Form of Marketing is YOU

If you could harness the most accessible, inexpensive form of marketing for your business, would you want it?

Everyone has it, but it’s easy to overlook.

The most authentic sales tool is one that’s always with you: yourself.

You are the face of your business. Marketing doesn’t sell, people sell! You are the vessel that carries your business brand to every prospect you meet. Are you making the most of own potential?

Being cheerful, confident, and courteous can go a long way toward making a stellar first impression.

Be Cheerful

People want to do business with people they enjoy, and a cheerful attitude can give you a winning edge in many situations.

Whether you are outgoing or more reserved, seek to be:

  • Positive: be optimistic and look on the bright side of life. Be a “green light” thinker and keep an open mind to new ideas.
  • Polite: whether you’re running errands or talking on the phone: be polite. You never know who’s listening.
  • Persistent: when things don’t succeed, don’t give up. Be intentional to build relationships or follow up on leads. Make the first move and don’t take rejection personally. As millionaire businessman Bo Bennett says, “A rejection is nothing more than a necessary step in the pursuit of success.”

Be Confident

When you look good, you feel good. And when you feel good, your confidence is high and you are more likely to perform well.

Your mindset has incredible power to shape your circumstances and help you achieve your goals, so start each day on your toes:

Take care of yourself: Brush your teeth, get regular haircuts, and keep your clothes and accessories in good condition.

Dress professionally: When you dress well, people will respect you. Put time and thought into your choices to communicate that you care about what you do.

Respect your culture: Every company has different expectations for appropriate dress. While you may have the freedom to choose, it’s best to lean on the simple, conservative side with accessories, necklines, or fit of your clothing.

Dress “Up”: If you are attending an important event or meeting, it’s always better to be overdressed than underdressed. A polished look lets people know you are serious and capable. If you feel overly formal when you arrive, you can always roll up your sleeves, ditch your blazer, or loosen your collar.

Be Courteous

Mark Twain said that action speaks louder than words, but not nearly as often.

People will judge you by your behavior, not by your good intentions! How consistently do your actions reveal a positive view of your character or business? Challenge yourself to:

1. Reach out to others. Be the first to say thank you, congratulate others, or start a conversation with someone who is standing alone. Be proactive, intentional, and kind. Do nice things at unexpected moments.

2. Live consistently. What are the mission and the brand values of your company? Do you represent these in both your professional and personal life? If your company exalts community investment, seek to volunteer and invest during your personal life as well.   

3. Be prepared for anything. Rehearse your personal introduction and have conversational icebreakers ready for unexpected moments. Have a product testimonial in your back pocket. Keep breath mints, business cards, or a portable phone charger ready. Think of yourself as a friendly, roaming billboard. Everywhere you go you can sell yourself and market your business.

Finally, remember to smile: a friendly smile makes everyone more inclined to like – and do business – with you.

If you need help marketing yourself on paper, give us a call and we’ll make you look your best.

Build Momentum with Contests that Make Your Customers Smile

Boston was overjoyed again as their darling RedSox capped off a 5-1 series victory over the Dodgers to take the 2018 World Series title.

The championship was well deserved, as Boston won a record 119 games, more victories than any World Series champion except the 1998 Yankees. “Now we deserve to be known as the greatest Red Sox team of all time,” said infielder Brock Holt.

If the RedSox are not the greatest, they are certainly the most loved. According to numbers crunched by Bundle, Boston fans are “America’s most obsessed baseball fans.” Bundle’s stats include money spent on tickets, food, and merchandise, including neighborhood restaurants and bars. From May of 2003 to April 2013, the Red Sox sold out every home-game seat – a total of 820 games for a major professional sports record!

The “Perfect Game” Promotion

One Boston retailer recognized this passion and tapped into the momentum.

In 2013, Jordan’s Furniture held a “Perfect Game” promotion with one simple premise: any fan buying furniture or merchandise before May 5 would receive the furniture for free if a Red Sox pitcher threw a perfect game between July 17 and October 1. While that perfect game never materialized, the contest was certainly a home run. In 2014, Jordan’s offered a new promotion: if the Sox could repeat their 2013 World Series victory, everyone who bought furniture between before May 18, 2014, would get a full rebate on their purchase!

Jordan’s grabbed local excitement and used it as fuel for sales. And why not? A wonderful way to build brand loyalty is by making your customers smile. Like a “kiss a pig” contest generates giving, you can grow marketing engagement with an entertaining contest of your own. Here are three examples to get your creative juices flowing:

1. Get Them Snapping. 

People love to snap and share photos, especially of themselves.

Capitalize on that obsession with personalized photo contests! Any photo contest can begin with these words: “Show us your _____.” Contestants then take photos that demonstrate their best, their worst, their ugliest, their cutest, etc.

Perhaps the winner of the ugliest couch gets a free upgrade from your showroom. Maybe the cutest baby picture nets a year of free diapers. The craziest bedhead gets a free cut and style from your salon. Get them sharing and enjoy the results!

2. Get Them to Go Wild. 

In this scenario, customers capture shots of themselves using your product “in the wild.”

This contest could include video or traditional photo categories and might also be used as a monthly or bi-annual promotion. Winners receive a prize, a service credit, or a gift card.

When you publicize the contest, include questions that might draw fun testimonials as well. Feature results in your newsletters, social media posts, or in hilarious product reviews!

3. Get Them Celebrating

What food do you adore? Do others love it too?

Get their taste buds tingling by building contests around minor secular observances like national doughnut day, coffee day, s’more day, etc. (Run a quick internet search of “national food days” for inspiration!)

Seasonal contests allow you to foster anticipation every year, especially during your off seasons. Ask people to vote on their favorite pie flavor then serve samples. Ask contestants to guess the number of Ghiradelli chocolates in your vase on National Chocolate Day. Ask for sweetest first date stories and give away a Valentine’s Day package at a local restaurant or hotel.

 Make customers smile and keep your name front and center all year!