Understand Your Buyer > How To Convert > The Discount Effect

What is it?

Discounting a purchase is one of the simplest and easiest ways to convert buyers.

Why does it work?

It works because it simply makes the offering cheaper. Whether as a sale item or through the use of a voucher code or other mechanism, making your offering cheaper makes it more appealing and accessible. But proceed with caution; offerings that are regularly discounted can be perceived differently as those which are offered at a lower price – tying the discount to a particular reason can discourage buyers from expecting a regular discount.

How can you use it?

Any offering can be discounted at any point but it’s a potentially dangerous thing to do unless you use it sparingly. If you do choose to discount then be sure to associate the discount with an event, special deal or other outside factor that ensures your buyers don’t expect a discount or perceive your offering differently.

Examples of discounts include:

Welcome discount
Anniversary (of being a customer) discount
Birthday discount
Reorder discount
Green Discount
Competitor Discount

The Discount Effect

Like this kind of stuff? Want more?

Action focussed, affordable sales training

for entrepreneurs and small business owners.