What’s the best way to drive sales for a business? For many business owners, a variety of factors may come to mind: Location, brand awareness, products and pricing strategies. All these variables can help a business make a profit in one way or another, but one proven method to growing sales revenue is by offering sales and deals.
Shoppers love a good deal and are willing to frequent businesses that offer incentives for money spent on their products. A recent study found that shoppers using coupons spend 37% more than those who don’t.
To really take advantage of the opportunity, though, business owners have to position their deals so that they create a sense of value for the customer. Timeliness and establishing a sense of urgency in the consumer are key.
There are many ways to make an offer enticing — you just need to figure out what works best for your business. From in-store coupons to customer loyalty membership offers and online purchase incentives, there are plenty of ways to draw consumers.
In 15 Ways to Generate Sales with Offers and Deals, Wikibuy has laid out 15 ways businesses can increase sales by using offers and deals in the infographic below. It includes real-world examples of how successful businesses use each concept to increase revenues without losing profit.
The use of special offers and deals must always be done strategically. In other words, it’s always a good idea to have a longer-term profitable pricing plan underlying a short-term promotion.
This helps you avoid the primary danger of a price cutting strategy. Discounts, special offers, and price-cutting deals, done for their own sake, tend to become a race to the bottom. In other words, competitors simply end up competing on low price.
A strategic use of offers and deals would sound more like this: “We offer a 10% discount code to anyone who abandons their shopping cart. We found that it decreases abandonment rates by 30% and increases revenues by 5%.”
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If you have another way to use offers and deals, let us know in the comments below!