Benefits of discount strategy to e-commerce business
What are the benefits of discount strategy in e-commerce business?
To start with, before you apply a discount strategy in your eCommerce business, you need to be aware of what benefits that the discount strategy would provide to your business. Is it the way to increase your revenue? Can we reduce the inventory losses through applying a discount strategy? This blog will show you 4 benefits of eCommerce business using discounts and coupons.
#1. Increased Conversions
Providing discounts and coupons to customers would increase their attraction to purchase products. Actively providing discounts would decrease the hesitancy of the potential customer when they are considering the order.
Source: Francfranc Hong Kong
#2. Increased Customer Acquisition
Offering discounts is a key way to attract brand new and potential customers to your brand. It would also help to strengthen the trustworthiness between the company and the new customers, setting the stage for the long-term relationship.
#3. Increased Customer Retention
Not only to attract new and potential customers, but maintaining loyal customer retention is also another important area that your business needs to think about. Providing discounts and coupons to loyal customers is an effective way to thank them for their ongoing support, and to keep them purchasing your products.
Source: Clarks Singapore
#4. Minimized Losses
Another significant advantage of offering discounts and similar deals is that it allows you to reduce inventory losses. You can cut your losses and possibly recuperate some of them by providing certain prices at a discount. This also frees up valuable inventory space, which can subsequently be filled with fresh and more demanding items.
Source: Lululemon Hong Kong
This article is co-created by HKEBA & Branch8