Discounts are one of the most effective ways to boost sales for retailers. However, discounts can be a double-edged sword. In particular, implementing discounts the wrong way can negatively impact your bottom line or attract the wrong kind of shopper who will only buy from you when you’re on sale. Let’s find out popular retail discount rules for your stores.
Define the Objectives as retail discount rules
Implementing retail discount rules without a strategy is one of the biggest mistakes of retailers.
By clearly defining the purpose of the discount, you will make decisions about which products to sell, when to sell, and the reasonable discount rate. Additionally, it will also allow you to measure the results of your campaigns to figure out how to improve in the future.
Different objectives come with different types of retail discount rules. For instance, if the purpose of your retail business is customer acquisition, you will probably want to adopt loss leaders or store-wide sales, which will allow you to attract as many customers as possible.
Deploy the Discount Plan at the Right Time
When planning offers and retail discount rules, you also need to focus on timing. Running promotions at the right time can drive sales as well as increase the conversion rate of your retail business.
This includes paying attention to when shoppers buy from you. For example, if a lot of customers buy from you at the beginning of the month, it’s wise to plan offers around that time.
Segment Buyers and Adjust Offers Accordingly
It is wise to rely on the buying history and preferences of customers to create offers or discounts. This can significantly increase conversions for your retail business. So, segmenting your customer base is worth the time and effort investment.
The simplest way to do this is to set up a buyer profile. Specifically, you can create profiles that highlight the price sensitivity and buying habits of different buyers. You can then use them as a tool to identify the types of discounts to offer to each type of buyer.
Pay Attention to Your Margins
Of course, as a retailer, whatever you do, margins should be the top priority of your retail discount rules. In other words, you need to make sure you don’t give away too much, resulting in losing too much money because of the discount. That’s why you need to set the “acceptable range of margin” for products.
Test different retail discount rules
The right discounting method will vary, depending on the size of your retail business, your customers, and your products. The best way to find the right retail discount rule is to implement different tactics to determine which is most effective.
For instance, some retailers may benefit from percentage discounts like 50% off, while others may have success with dollar-amount off promotions, such as $50 off.
Besides running promotions, it is wise to use a quality POS system such as ConnectPOS to stay ahead of the competition.
In general, carrying out retail discount rules can be a great solution to bring in new buyers, reward your loyal buyers, and move a lot of inventory in a short amount of time. You should have a strategic approach and know your goals to increase revenue. Contact us for more information about retail discount rules.