Giving discounts to customers: How Creators Can Optimize Sales to Increase Sales

 Last updated: August 4 2022

Making money selling your digital items or services online takes just the same amount of planning and preparation as making them. You need compelling marketing as well as a loyal audience and a trusted selling platform. What happens if everything you have put in place doesn't turn to better sales numbers?

A good place to start is by offering discounts to customers.

Everyone loves a sale A recent study showing that 88 percent of American customers used coupons for discounts in the year 2020.

What's the best way to effectively promote discounts for downloads, subscriptions and online memberships? This is what digital creators have to consider before cutting rates.

Do not offer discount offers before considering the basics

Selling on the internet is an excellent method to make money from whatever you like to do. However, you mustn't forget what you're selling in the first place: to earn money. It is important to consider these factors when deciding if you want, when, or how to offer discounts to customers.

 What's your profit margin?

Being able to offer your products on the internet with little upfront cost is an advantage being a digital creator. But, you'll still require the right business strategy to succeed.

Prior to offering discount coupons to your customers you need to calculate:

• Your business expenses (subscription costs to graphic designing software, social media tools, web hosting & maintenance, selling platforms etc. )
• The quantity of money you must/aim to earn

Combining these two numbers gives you the magic number you need to hit every month. This will guide you on what to charge for your goods and then apply discounts according to.

 Who are your customers?

Everyone enjoys a good sale regardless of age, gender or income. However, keeping these aspects to your mind can help determine which discount offers to offer and how to offer them.

Creating customer personas is a great way to do this. Here are some categories to make you think about people who may be interested in your products and the best way to provide them with discounts.

• Age
• Gender
• Location
• Profession
• Income
• Family (marital status and children)

How do these data help in decision making in the area of promotional activities?

First, if you've identified the minimum monthly amount you need to make and estimate your client's budget, this helps you decide on the discount sweet spot that is a value that is appealing to your clients but still manages to make you an income.

A second reason is that solid customer personas can help you decide which products to include in sales bundles or buy one, receive one deal.

 What is your store and schedule appear?

Getting your products on the shelves of customers is an accomplishment for the sense of. Once you've done it, your first impression matters The storefront you choose to display should include background information on yourself as well as detailed descriptions of the items, and a simple checkout process. It gives credibility, increases customer confidence and leaves an impact.

If you've got a variety of goods, it's important determine which items you can discount to convince customers to buy more. It's the point where an accurate customer persona really can make a difference. It helps determine which items are the best to offer as a deal or offer, and which can be used in full-price.

As a coach or instructor providing free consultations or trial sessions, you can't risk overbooking yourself to gain more customers. The first step is to analyze your client base and availabilities prior to launching any offers.

What types of discounts to offer

Professionals who are smart know there's more to be won when offering discounts to customers. To get the most value from discounts means offering the right one at the right time.

Digital downloads (Ebooks, printables, presets, sewing patterns etc. )

 Percentage reduction

This is the most popular type of sale and the type that online shoppers enjoy the most. Data from recent surveys show that 74% of the digital coupon users like a percentage discount more than other types of promotions.

 What to watch out for

Customers who purchase cheaper items generally perceive a better deal in percentage reductions versus dollar amount discounts -- even when discounts are similar. As an example, a promotion that offers $20 T-shirts for sale at 25% discount will attract much more attention than an offer of five dollars off the same 20 T-shirts.

 How to use it

• Get new customers to join your list and expand your mailing list with a 10% discount on your first purchase when they join your email newsletter.
• Reward loyal customers with a 20% discount when they make the next purchase.

 Fixed Amount Discount

Another form of discount is one which offers a fixed amount off the price of the product. Like percentage reductions messaging is everything.

 What should you look out for

Make the most of discount coupons that are fixed in amount using them on more expensive items. Check out how much different $50 off a $150 digital print poster appears when in comparison to offering the exact product for 33% off. Think about applying it to higher-priced products that haven't been performing in the past.

 What is it and how to utilize it

• Give a set amount of discount on purchases with an amount of. As an example, you can get 30 percent off any purchase over $100.
• Allow customers to buy online and mail digital gift cards in increments of $5, $10, $25, or more.

 Buy One Buy One, Get One

BOGO deals are basically offering two goods for 50% off. This is why it is the kind of offer most often favored by 64% of consumers across the board. This type of promotion can help you increase sales and to introduce customers to goods they would have never thought of buying.

 What to keep an eye out for

Make sure you are aware of the products you bundle and consider your customer. Is the potential for combining products of different categories greater than the risk of an abandoned cart? Do you want to play your cards safe and offer similar products even if you have to give the item that could have been bought separately?

 What is it and how to utilize it

• BOGO discounts to your mailing list. Offer customers a free item when they buy any new item at full price.
• Advertising Buy One, Get One offers on social media. Make a multi-slide reel with the various products available for customers to mix and match to get the discount.

 Bundle discounts

Giving multiple items with a reduced price can be a fantastic way to upsell and increase your AOV (average order value). Studies show an average of 29% shoppers are likely to purchase a product that they hadn't originally planned to buy if the item is heavily reduced. Brick-and-mortar stores use this type of sale to swiftly eliminate stagnant stock so that they can make room for the latest products.

 What should you look out for

If you are a digital artist with infinite storage space, you must keep your margins in mind prior to offering multiple products with a discounted price. Also, remember that with bundle discount offers it is all about timing: One popular tactic is offering this promotion at the conclusion of the customer journey. After a person has made a decision to buy something, provide related items in a bundle for a discounted price at the time of checkout.

 What is it and how to utilize it

• Add a pop-up window to your checkout webpage that shows an array of products.
• Feature a bundle discount on pages for products with complementary items below or as a sidebar.

 Supply and time-limited deals

The internet is available 24/7 and that diminishes the need to shop when on the internet. Utilizing discounts that are time-sensitive or with special offers that are limited in supply encourages shoppers to act promptly. In addition, you could make use of seasonal or holiday offers to take advantage of an increase in sales or promote items relevant to particular time of the year.

 What to watch out for

Make a discount calendar in advance of the date. This will help you time the launch of new products and also your content on social media. Also, be careful about timings for sales duration: You want to make the sales small enough to cause urgency, but large enough for adequate promotion as well as customer recognition.

 What is it and how to utilize it

• Send birthday discounts to customers who have previously made purchases with your company.
• Give digital Christmas coupons to the people on your mailing list.
• Take part in Cyber Monday and enjoy significant savings.
• Include sales on seasonal products in your newsletters. If, for instance, you write vegan cookbooks, offer discounts on your best soup cookbooks at the start of the fall season.

 Freebies

Although technically, they are not discounts but they are an excellent opportunity for sellers to build the visibility of their brand and bring more customers to their online store. This kind of promotional strategy works well for online creators as you don't suffer any monetary loss.

 What to watch out for

Everyone likes free...but the point of freebies is to convince customers to purchase eventually. So be wise: Offer templates that demonstrate your best work , and keep your customers looking for more. If, for instance, you're a fitness coach and you want to offer your customers a free week-long meal plan that includes only lunch options, or workout routines targeted at a specific region.

 What are they and how to utilize them

• Download PDF free templates on your social media networks.
• Combine less popular products as freebies for customers who purchase items for all price.
• Advertise free products via your email newsletters, as well as a hyperlink to your store's page for increased customers to your store page.

Subscriptions, Memberships and Software

Think offering discounts to customers is limited to download products? If you're an instructor, coach or software designer, you've got plenty of options for advertising memberships in your classes, as well as subscriptions to your software.

 Free trial/Freemium plan

Giving a trial-free access to your courses' materials or software could be an ideal way to bring in and retain new followers.

 What to watch out for

In the case of product-based marketing Knowing your audience is vital: What do the potential customers looking for? How do you present them with only enough of your products or programs to get that they should choose to pay for choices?

 How to use it

• Give a trial version of your application that has limited capabilities.
• Give a complete version of your software for a limited duration.
• Promote a trial of workout plans or even courses.
• Make savings by choosing to pay annually rather than. each month.

 Free consultation

A free consultation is an effective method for coaches as well as other service providers to win confidence from clients. Offer a quick live session over Zoom or through an online messaging system. The client will describe the specific issue (weight loss, nutritional issues and parenting concerns) You can then provide an organized plan that is that is tailored to the needs of their clients.

 What to watch for

First and foremost, you'll be able to figure out what time frame you'll have available. Are you targeting a local or international audience? Time differences may be an issue with scheduling. For both of these reasons, make sure to advertise the availability of your product (i.e. first 10 respondents) and provide a clear description as to the services you're providing and for whom it's appropriate.

 How to use it

• Create a "booking' button on your store page connected to Calendly or another online calendaring tool.
• Free consult offers to your members on your mailing list that didn't have previously made a purchase or booked through you.

Free webinar/ Q&A

The idea of hosting live events is an excellent way of getting people talking regarding your offerings. Even though you might not have enough time to each person, this method could be more manageable than a 1-on-1 consult.

 What to look out for

Select a topic general to the audience you are targeting is interested in and be prepared to address questions! Be sure to offer useful information without trying to promote your service, yet don't go in depth -- keep them wanting to know more!

 How to use it

• Set up live events on Facebook and share it with your social media account, website, and email.

What marketing channels should you make use of when offering discounts to clients

Even the best-planned discount will fall flat when they're not promoted effectively. Utilizing the right marketing channels improves the chance of your campaigns reaching your intended audience and convince the people they are to make a change.

 Social media

If you've not yet established a Facebook page to promote your business, this is the best time to create one. It is the most effective tool to get your product or services noticed.

• Making a Facebook business page helps you appear more professional and lets millions of people around the world to find you. Utilize your page to announce promotions, as well as interact with your target audience. Join relevant communities to discover more about your niche and increase awareness about your services. It is also possible to make use of the platform to organize and promote free live events and also pay-per-click advertisements.
• Instagram is the best tool to capture your audience's focus, show off your merchandise or services, and drive visitors to your shopfront. According to a recent survey 33% of the respondents reported that they've used discount coupons discovered on retailers' Instagram accounts to purchase on the internet. Posts that highlight sales items, and add discount coupons inside the post's caption. Connect your store's website to your bio for an easy way to take clients to your store within a matter of seconds.

 Email marketing

Emails from marketing are generally regarded as unpopular by customers. However, don't abandon your newsletter for good: A surprising 81% of online shoppers are actually happy to receive emails that contain sales announcements or discounts. Increase the number of emails you send out by giving sign-up bonuses or freebies. You can also use it to offer your customers coupons and draw customers to your site.

 Your website , storefront, or even your storefront

As a digital creator A dedicated area for your products and services is crucial. Utilize social media as well as emails in order to boost traffic to your store front which gives customers an even more detailed look at the products and services you offer. Use pop-ups and similar product windows to advertise bundles, BOGO discounts and more.

Website not available? No problem! Link your store to your social media profile and link your items to millions of internet-savvy shoppers. Learn more about how simple it is on this page.

On average, online shoppers who use discount codes spend an average of 24% more than shoppers who don't. As a digital creator is in your own best interests to locate an easy and effective way to offer discounts to your clients.

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