How to Offer Discounts to Boost Revenue: Tools & Strategies

How to Offer Discounts to Increase Revenue: Top Tools & Strategies

Posted 10 months ago by Anastasia Prokofieva

Smart businesses know that strategic discounting isn�셳 just a桂temporary rush桂�� it�셲 a桂revenue driver that can revitalize sales figures and桂influence customer loyalty.

However, when discounting, there�셲 a桂fine line between boosting profits and桂devaluing your products 늡곶桂services. To桂make the桂most of桂this powerful revenue-generating strategy, it�셲 crucial to桂have a桂solid plan and桂use the桂right tools.

In桂this article, we�셪l explore the桂art of桂offering discounts and桂shed light on桂how to桂spend less time managing discounts as桂a桂busy business owner. Read on!

Discounts as桂a桂Tool f늡곶桂Growth

Discounts are much more than a桂straightforward reduction in桂price. When employed strategically, they can be桂the桂driving force that injects a桂surge of桂sales into any桂business.

However, understanding the桂nuances of桂effective discounting is桂a桂must. It�셲 about finding the桂sweet spot that maximizes revenue without devaluing your products 늡곶桂alienating your brand.

Knowing when and桂how much to桂discount is桂essential f늡곶桂small business owners. Offering seasonal discounts, flash sales, and桂customer loyalty rewards are proven ways to桂stimulate customer spending. These promotions create a桂sense of桂urgency and桂exclusivity that nudges potential buyers to桂make a桂purchasing decision.

Big sales events like Black Friday and桂Cyber Monday are significant f늡곶桂a桂reason桂�� they represent concentrated opportunities f늡곶桂business growth. During these events, consumers are primed to桂take advantage of桂offers, opening the桂floodgates f늡곶桂potential sales. Planning your discount strategy around these events can yield substantial returns.

Last year in桂the桂US, 78% of桂consumers planned to桂shop during November sales events, a桂trend also seen in桂Canada, Poland, and桂Germany (Source: )

How to桂Simplify Discount Management

While slashing prices can supercharge your promotions, navigating those discounts can be桂a桂real headache, especially f늡곶桂online shops juggling massive product catalogs 늡곶桂during the桂year�셲 craziest shopping frenzies like Black Friday and桂Cyber Monday.

Here is桂where 붚죕쳔 by桂Lightspeed comes in. Apart from providing sellers with a桂robust online store, it桂offers many business growth tools. That includes the桂rich tool set f늡곶桂discount promotions, such as:

sale prices
discounts based on桂order subtotal
discounts f늡곶桂specific customer groups
bulk discount pricing
discount coupons
advanced discounts.

Advanced Discounts are a桂game-changer f늡곶桂businesses with complex needs. It桂caters to桂growing stores that demand more control over their discount strategies and桂campaign management.

With features like quick rule setup and桂easy scheduling, simplify a桂process that can often be桂tedious and桂time-consuming. Let�셲 discover how:

Discount Management Made Easy with 붚죕쳔

No桂matter how vast your product catalog 늡곶桂how packed your schedule is, it�셲 a桂breeze to桂set up桂and桂go桂with Advanced Discounts.

With just a桂few clicks, you can create sophisticated discount rules that resonate with your target audience, offering them the桂best value f늡곶桂money.

Save Time on桂Discount Setup

Create and桂customize discounts f늡곶桂your products 늡곶桂categories in桂a桂flash. The simple 3-step process has you covered, all in桂under a桂minute. Set discounts in桂absolute values 늡곶桂as桂a桂percentage.

It桂takes just three quick steps to桂set up桂an桂advanced discount

Set It桂and桂Forget It

Plan your discount campaigns and桂schedule your sales. Prices will automatically reduce at桂the桂start of桂the桂sale and桂return to桂their original amounts once the桂sale concludes. Set it桂once, and桂you�셱e all set to桂dazzle.

Schedule your sale with convenient date and桂time pickers

Keep Your Discounts Organized

Are you struggling to桂keep up桂with all the桂ongoing discount campaigns? Consider it桂done:

Easily tweak the桂rules f늡곶桂your discounts anytime, keeping your offers fresh and桂exciting.
Switch discounts on桂and桂off as桂needed, effortlessly reactivating them anytime. This feature is桂handy f늡곶桂sparking quick sales all year round without the桂hassle of桂setting up桂new discounts each time.

Easily manage all your discounts by桂editing 늡곶桂toggling them on桂and桂off as桂required

Using the桂Advanced Discounts feature effectively can lead to桂higher conversions, increased customer engagement, and桂ultimately enhanced revenue. It�셲 a桂dynamic tool that gives small businesses the桂competitive edge to桂succeed in桂an桂increasingly crowded online marketplace.

Ready to桂set up桂your first Advanced Discount? Check out these instructions from the桂.

How to桂Offer Discounts without Going Broke

While discounts are a桂powerful tool, they�셱e not without risk. Offering too many discounts can negatively impact your profit margins and桂devalue your products in桂the桂eyes of桂consumers.

To桂leverage discounts effectively, consider the桂following strategies:

Start with Strategic Budgeting

To桂avoid a桂negative impact on桂profit margins, it�셲 a桂must to桂set a桂clear budget f늡곶桂discounting and桂stick to桂it. It桂means carefully considering the桂type and桂amount of桂discount you offer, as桂well as桂setting a桂time limit.

Offer Tiered Discounts

Implement tiered discounts, where the桂savings level increases with the桂purchase size. It桂incentivizes larger purchases, rewarding your most loyal customers with more significant savings, encouraging repeat business, and桂fostering a桂stronger customer relationship.

Pro tip: Implementing tiered discounts is桂an桂excellent strategy f늡곶桂introducing a桂loyalty program to桂your online store.

Run Time-Bound Promotions

Create urgency with time-bound promotions that encourage immediate action. This way, customers are more likely to桂make a桂purchase before the桂discount expires.

Offer Value Bundles

Pair complementary items to桂provide greater value to桂your customers. It桂helps you increase the桂average order value and桂promote the桂purchase of桂multiple products. This is桂a桂strategy commonly used by桂retailers like Amazon and桂Sephora, known as桂혫bundle pricing.니

깝닥桂꿎늡넵 sell online with 붚죕쳔, you can offer product bundles via Upsell and桂Cross Sell Product Kit 늡곶桂Product Bundles apps from the桂붚죕쳔 App Market.

Pairing complementary products enhances the桂appeal of桂discounted product bundles

Provide Selective Discounts to桂Certain Customers

Another way to桂mitigate potential risks is桂by桂offering discounts through targeted marketing efforts. This could mean sending personalized offers to桂specific customer segments.

For example, offering discounts to桂customers who have abandoned their cart 늡곶桂sending exclusive deals to桂customers who bought a桂specific product. (The latter works best with upselling 늡곶桂offering complimentary items.)

Pro tip: Use 붚죕쳔�셲 Customers dashboard to桂segment customers by桂products bought, order count, total order value, and桂more.

Filtering customers who made three 늡곶桂more purchases

Discount Subscriptions Rather Than One-Time Purchases

깝닥桂꿎늡넵r business offers subscription-based services 늡곶桂products, consider offering discounts f늡곶桂subscriptions instead of桂one-time purchases. This can increase customer loyalty and桂provide a桂more stable source of桂income f늡곶桂your business.

Pro tip: Use 붚죕쳔�셲 subscriptions to桂manage recurring payments and桂offer discounts on桂subscription plans easily.

An桂example of桂a桂혫Subscribe &桂Save혬 promotion from the桂McNabb Microfarm store

Track Discount Campaigns Performance

It�셲 also essential to桂track the桂success of桂your discount campaigns. By桂analyzing data such as桂sales figures, customer feedback, and桂website traffic during a桂discount period, you can determine which discounts were most effective and桂adjust your strategy accordingly.

Pro tip: Use Marketing reports in桂붚죕쳔 to桂track the桂performance of桂your promotional campaigns.

View the桂breakdown of桂sales sources in桂the桂Marketing reports

Wrap-Up: Use Discounts Strategically

Discounting isn�셳 just about cutting prices to桂get rid of桂excess stock. It�셲 a桂sophisticated system designed to桂foster customer relationships, drive traffic to桂your store, and, most importantly, increase revenue. The time invested in桂honing your discount strategies will pay dividends in桂the桂form of桂a桂more robust and桂profitable business.

With a桂firm understanding of桂your audience and桂the桂right tools桂�� including 붚죕쳔�셲 Advanced Discounts feature桂�� you�셪l be桂well on桂your way to桂achieving your sales goals and桂fostering a桂community of桂loyal, satisfied customers.

Take the桂next step in桂your ecommerce journey with Advanced Discounts, and桂save time on桂setting up桂and桂managing your campaigns.

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About The Author

Anastasia Prokofieva is a content writer at 붚죕쳔. She writes about online marketing and promotion to make entrepreneurs�� daily routine easier and more rewarding. She also has a soft spot for cats, chocolate, and making kombucha at home.

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