Our CEO, Jon MacDonald, talks about the dangerous long-term implications of leading with discount offers and recommends a few alternative strategies to try instead.
Show Notes
When it comes to incentivizing customers, one of the most prevalent practices is to use a price or a percentage discount, but this can have some dangerous long-term implications.
Here's why most brands default to discounting...
- It's convenient – You can have them up and running in hours, if not minutes.
- It's effective – They often drive a short-term boost in conversion rate and sales.
- It's enjoyable – Who doesn’t love to see a spike on their revenue chart?
What you don't hear about is how sticky the discounting habit can be, how reliant your customers can become on getting a good deal, and what impact becoming known as a "discount brand" can have on your business.
It's not all bad. After all, if discounting wasn't effective, it wouldn't be such a common occurrence, both online and in-store.
But, much like other areas of business, "because everyone else is doing it," generally isn't a solid foundation to build your marketing strategy on.
In this episode, we explain why we're generally against using traditional price or percentage discounts and what we recommend you do instead.
If you want even more information on this topic, click the link below to read over 3,000 words on discounting strategy for ecommerce businesses. It's our gift to you. :)
https://thegood.com/insights/discounting-for-ecommerce/
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