Advantages of offering discounts

Discounts are well-known incentives for buyers. Buyers are more attracted to stores and websites that offer discounts. Even with business-to-business transactions, discounts still come with a special appeal. But how do businesses that offer discounts benefit from such discounts?

When discounts are properly applied, they come with several advantages for the parties offering them. This article highlights what businesses stand to gain when they offer discounts.

Better sales

This is a natural benefit because buyers are more attracted to a product or service when it comes with a discount. A major advantage of offering discounts is the increased sales that come with them. A product will sell better when it is offered at a lower price. This is also the reason why businesses offer discounts as short-term incentives.

When a product is offered at a reasonably lower price, it gets the attention of its target audience. Business can thus leverage on discounts to get better attention from their customer base. The increased attention cash thus be maximized to increase long-term turnover.

Enhanced customer relationship

Customers love discounts, and it is a good way to get their attention. Apart from getting the short-term attention of customers, businesses could also establish better customer relationship and encourage loyalty when they offer discounts. Also, themed discounts are ways of encouraging customer loyalty. For example, when a business offers discounts to students and veterans, they build customer loyalty.

The reputation of a business can also be improved with discounts. Thus, the offering of consistent discounts is a way of improving the quality of a brand. Discounts are ways of expressing care and warmth. When a business offers discounts, it expresses warmth and helps customers connect with their brand better.

Attainment of sales goals

When an organization offers discounts, its ability to attain its sales goals are improved. Businesses have monthly, quarterly and yearly sales goals. Discounts are ways of ensuring that sales goals are met. With discounts, businesses ensure that there is no low-sales period, as the discounts improve sales volume.

Thus, businesses can plan discounts for periods where customer activities are low and utilize discounts as tools for ensuring a steady sales volume.

Old stocks are cleared

Discounts are ways of clearing items that did not do well and freeing up more storage space. Customers may not be attracted to a product at the initial prices it was offered but will certainly be attracted when a good discount is applied to the initial price. However, discounts on such products should be good enough to attract customers that weren't initially interested in the product.

Better brand awareness

Especially with the advent of social media, discounts are great ways of increasing brand awareness. When discounts are strategically presented and marketed to customers, they become interested in the brand. Some customers may just stop by to satisfy their curiosity from all the marketing activities they had seen.

Discounts are effective marketing and branding tools for businesses. When they are strategically applied, they offer more advantages than disadvantages.