Discount is a valuable marketing strategy during the Christmas season, especially for small businesses. There are plenty of ways to perform discounts throughout your marketing plans for this holiday season. Let’s look at the following tips to get your business to have successfully implemented discount strategies in stores.
What Is A Discount Strategy?
A discount strategy is a retail store’s tactic for making the most amount of money. This can range from increasing sales or offering discounts on certain items. It is usually used as a way to combat the threat of competition and produce sales increase.
For example, if your goods or service costs $10, you might offer 5% off of this price for any orders over $50; but would offer 10% off of this price if the order was over $100. The same principle can apply to anything with a finite amount.
5 Discount Strategies On Christmas For Retailers
Utilize Reward Programs and Loyalty Programs for Repeat Customers
One of the biggest ways that retailers entice customers to buy during the holiday season is offering discounts to loyal customers. This can be in the form of a loyalty card, or just by recognizing repeat customers and rewarding them for coming back.
For example, you might offer a 10% discount for certain repeat customers on all of their purchases. The customer is going to pick and choose between the things they really want, but also buy a few other things that they don’t need as badly because the savings are too good to pass up.
Discounts For Non-Customers
Retailers use the “nudge theory” to encourage visitors to make a purchase with an offer that is hard to ignore. When done correctly, retailers can convert new visitors into loyal customers by this tactic.
A great example of this strategy is offering free gift cards or gift vouchers when advertising on social media. These vouchers are only redeemable at the shop, so it’s beneficial for the retailer because customers are boosted to visit brick-and-mortar stores.
For example, you can market a Christmas tree placed in-store through a social media campaign, and offer shoppers a $20 gift card to one who takes a picture with the Christmas tree or purchases a Christmas tree.
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Discounts For Bulk Orders
Another common Christmas discount strategy is to offer specific discounts for larger purchases. Giving customers rewards for buying bulk orders will encourage them to come back in the future because the discounted prices are enticing. When you reduce the costs for huge orders, your sales will increase, eventually leading to more loyal customers in the future.
For example, a retailer might only offer 10% off any purchase of $200 or more. This boosts customers to buy more since the discount adds up quickly for every dollar spent.
Offer Rewards For Referring Customers
A customer referral program can increase brand awareness and loyalty. If you’re in the business of selling products, it’s essential to incentivize customers who refer others to buy your services or products.
This can be anything from promotional materials for referring customers, discounts on products for them to give away, or even an item you give away when they refer someone new. One idea might be giving freebies regularly, such as a shirt for every five referred friends.
If you offer rewards, customers will feel like they’re getting more than their money’s worth. They’ll be more willing to share their referral link because they feel that they’re earning something in return.
Discount On Inventory Products
December is notoriously the busiest month for businesses, so it’s time to discount inventory products in the year. Many retailers offer regular discounts on merchandise in order to make up for slower selling months. This is a relatively new trend in the retail industry.
For example, if a retailer sells an item for $150 (original price: $100), it might be discounted to $130. Instead of losing money on this item, he can make less money by offering it at a lower rate to shoppers.
Discount strategies on Christmas are quite straightforward, though many businesses often fall short when it comes to implementing them. If you have no experience with these programs in the past, now is the time to start a new Christmas tradition. ConnectPOS will bring benefits to customers and allow your business to increase sales during the Christmas season.