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Offering discounts on your website is a powerful way to attract customers, increase sales, and enhance customer loyalty. Whether you run a small online shop or a large e-commerce store, knowing how to set up and manage discounts effectively can make a significant difference to your bottom line. In this blog post, we'll walk you through the steps to set up product-specific discounts and store-wide discount codes, helping you create irresistible offers for your customers.
Discount Strategies
Implementing discounts on your website isn't just about cutting prices—it's a strategic move designed to increase sales, attract new customers, and build loyalty. Understanding the best times to offer discounts and how to use them effectively can significantly enhance your business outcomes. Here’s a deeper dive into the benefits of using discounts and some strategic insights on when to use them.
Benefits of Using Discounts
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Increase Sales Volume: Discounts can create a sense of urgency, encouraging customers to purchase sooner rather than later. They can also lead to larger order sizes as customers aim to meet discount requirements (e.g., free shipping on orders over $50).
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Attract New Customers: Discount codes, especially those shared through email marketing or social media, can attract new customers who might not have considered purchasing from you otherwise. A well-placed discount offer can be the incentive they need to give your products a try.
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Clear Out Old Inventory: If you have products that have been sitting on the shelf for too long, discounts are an excellent way to clear out old stock. By marking down these items, you can make room for new inventory without taking a total loss.
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Build Customer Loyalty: Offering exclusive discounts to your returning customers is a fantastic way to reward loyalty and encourage repeat business. It shows appreciation and keeps your brand at the forefront of their purchasing decisions.
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Compete More Effectively: In competitive markets, having discounts can make your store more appealing compared to others. A well-timed sale can draw customers away from competitors, especially if your discounts are perceived as more valuable.
When to Use Discounts
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Seasonal Sales and Holidays: Holidays like Black Friday, Christmas and special events like back-to-school season are perfect times to offer discounts. Customers expect sales during these periods, and participating can help you capitalise on increased shopping activity.
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Product Launches or Anniversaries: Offering discounts during a product launch or to celebrate your business anniversary can generate excitement and buzz. It’s a great way to introduce new products and thank your customers for their support.
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Reactivate Lapsed Customers: If some customers haven’t purchased in a while, a targeted discount can bring them back. Send them an email with a special offer to remind them of what they’re missing.
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Encourage Larger Purchases: Use discounts strategically to encourage customers to spend more. For example, a discount for orders over a certain amount can increase your average order value and overall revenue.
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Clear End-of-Season Inventory: As seasons change, so does demand for certain products. Discounts can help clear out end-of-season inventory, making space for new arrivals.
Strategic Tips for Using Discounts
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Set Clear Goals: Before implementing a discount, understand what you aim to achieve—whether it’s increasing sales, clearing inventory, or attracting new customers. This clarity will help you design more effective discounts.
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Test & Optimize: Not all discounts will work the same way. Test different types of discounts, such as percentage off, free shipping, or buy-one-get-one-free, to see which resonates most with your customers.
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Create a Sense of Urgency: Limited-time offers can create urgency, encouraging customers to act quickly. Phrases like "Only 24 hours left!" or "Sale ends soon!" can drive immediate action.
Understanding the Different Types of Discounts
Before setting up discounts, it's essential to understand the different types and rules you can apply:
Rules
- Discount Code: Customers can enter a specific code during checkout to receive a discount.
- Order Above Limits: A discount is applied when the total cart value exceeds a certain amount (e.g., $100).
- Number of Items: Discounts are triggered when customers add a certain number of items to their cart (e.g., buy 3, pay for 2).
Types of Discounts
- Percentage of order value
- Free shipping
- Cheapest item free
- Fixed amount
You can mix and match rules and discount types to create tailored promotions. For example:
- Buy 3, Pay for 2: Combine the "Number of items" rule with the "Cheapest item free" discount type.
- $10 Off on Orders Over $100: Use the "Order Above Limits" rule with a "Fixed amount" discount type.
- 20% Off with Code “EASTER”: Apply the "Discount code" rule with a "Percentage" discount type.
- Free Shipping on Orders Above $50: Utilize the "Order Above Limits" rule with the "Free shipping" discount type.
Setting Up Discounts
Setting Up Discounts on Individual Products
Discounting specific products is a great way to move inventory or promote best-selling items. Here’s how you can set up a discount on individual products:
- Edit Your Products: Start by navigating to the E-commerce section of your admin panel. Click on “Edit” to access your product settings.
- Select the Product: Choose the product you want to apply the discount to by clicking “Edit” next to the product name.
- Access Product Settings: Once the product dialogue window opens, locate the “Product Settings” option at the top right corner.
- Set the Discount: In the General Settings, find the “Discount” field. Here, you can enter the percentage discount you wish to offer. For example, setting a 20% discount will reduce the product’s price by 20% automatically.
By following these simple steps, you can apply a discount to any product in your inventory, making it easy to create attractive offers for your customers.
Setting Up Discounts for Your Entire Shop
If you want to offer broader discounts across your entire shop, such as during a holiday sale or to reward loyal customers, you can set up discount codes and special offers that apply to multiple products or the whole store. Here's how you can set it up:
Creating a Discount Code
To set up a discount code for your store:
- Open Store Settings: Go to the admin panel and click “Settings” at the top right corner.
- Navigate to E-commerce Settings: Select “E-commerce Settings” from the dropdown.
- Select Discount Codes: On the left side of the dialogue window, click “Discount Codes.”
- Create a New Discount Code: Here, you can create new discount codes. Define the rules (e.g., discount code, order above limits, number of items) and select the discount type (e.g., percentage, free shipping, fixed amount).
Managing and Deleting Discount Codes
If you need to manage or delete existing discount codes, simply go back to the “Discount Codes” section in the store settings. From here, you can edit or delete any discount codes as needed.
Conclusion
Offering discounts is a strategic way to boost sales and enhance customer engagement on your website. By setting up product-specific discounts and store-wide discount codes, you can provide compelling offers that attract and retain customers. Remember, all elements of the discount settings are fully customisable, allowing you to tailor each offer to match your business goals and customer preferences. Get started today, and watch your sales grow with these simple but effective discount strategies.
