How discounts can push your business further
Generating more sales
One of the most obvious advantages of offering discounts on your products is its ability to help shift stock.
This is not only beneficial for your stock room, but also your business’s finances. Interestingly not only do discounts increase the number of sales on the reduced product itself, but they also increase overall sales within your store. This is largely due to people feeling that with the discount they have more money to spend, and due to them searching your store for further discounts and finding other products, previously unthought-of, that they may wish to purchase.
In fact, discounts have proven themselves to be such a powerful sales tool that two-thirds of customers make a purchase that they previously had no intention of making purely because an item is discounted.
Price reduction combined with the selling potential provided by livestream shopping paints a positive outlook for any online business. Using a combination of both creates a sense of urgency around the discounts you are offering and increases the potential of customers making their purchases and even attending your streams, in order to seek out the best deals. Together they also generate the capacity to shift difficult stock that may not be selling as well as you had hoped, or even to highlight other items that you think will prove popular.
Increase your brand awareness and reputation
The benefits of offering discounts extends beyond just the ability to shift stock fast. One major way in which implementing price reductions can help your business is by increasing your brand awareness and reputation.
Brand awareness is essential are you to compete successfully with similar businesses in the market. Research has shown that when people save money on purchases their happiness increases, and so by offering discounts you are making your customers relaxed and happy. These feelings will in turn be associated with your brand and increase your prestige.
Studies have highlighted that offers and deals are a top factor for customers in determining where they are going to shop. In addition to this four out of five Americans report that when purchasing reduced items, the discount remains in the forefront of their mind for the whole of the purchase journey.
Combining your chosen discounts with a livestream shopping event, as we would suggest, increases the feeling of exclusivity, and the personal element provided by streaming can generate the feeling that you are doing your customers a personal favor, rather than the other way around.
Therefore, price reduction offers your business an easy solution to creating a positive and memorable experience for your customers that will keep them coming back, and that will increase the chances of them recommending your brand to others.
Bring in new customers and keep them loyal
This brings us nicely to the next, and perhaps most underrated, benefit that discounts can offer you and your brand, bringing in new customers and creating loyalty with already existing ones.
The statistics speak for themselves on this one, with almost 80% of people stating that they are more likely to make a first-time purchase with a brand if a discount is offered.
In addition to this, offers and deals ranks as one of the top deciding factors when customers are deciding where to purchase an item from. This links back to the idea that customers feel you are doing them a favor when offering a discount.
By offering price discounts potential customers will have an increased level of trust in your brand (providing you don’t discount too low - remember value and cost are heavily tied together in your customer’s minds). This trust not only translates to your new customers but also to your already existing ones.
Offers make your customers feel that they are getting more for their money and so will be more likely to return to your brand rather than exploring others. This is important for your business’s success as loyal customers are shown to spend on average 70% more than new ones. Hubspot conducted a study revealing that 40% of online shopping revenue comes from repeat customers, who make up only 8% of site visitors.
Building a healthy base of loyal customers is, therefore, one of the most surefire ways to make your business and brand successful, and discounts play a huge role in achieving this.
Gain the competitive edge
This brings us to our final point about the importance of discounts, which is the competitive advantage they give your brand.
This benefit, in many ways, is a result of the points discussed above and yet is an advantage that rightly deserves its own time in the spotlight.
As we have already seen, offering discounts keeps existing customers loyal but also increases the chances of new customers taking the plunge in purchasing from your brand rather than ones they may be more familiar with.
In addition to this offering discounts on products will prevent potential customers from comparing your products to those offered by your competitors, as they will already be under the impression they are getting a better deal. Combine this with the feeling of exclusivity and urgency generated by offering discounts in a livestream event and you are sure to generate sales.
There are sure to be many added benefits of offering discounts to your customers that are not discussed here, but those discussed throughout this article alone should be enough to convince you to give it a go.
The implementation of price reductions paired with the sales power of livestream shopping will make your business unstoppable, and in a world where competition is endless, we know how important it is to stand out and shine.