Looking for a strategic way to acquire more customers, get rid of unsold inventory and earn repeat customers? It’s time to try our discounting strategies.
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Discount pricing is a strategy of applying discounts via sales, coupons, codes, or bundles to products in order to entice customers into completing a purchase.
The strategy is focused on changing the customer's perception on what a product or service is worth by creating a win-win situation.
Discounts have been a commonly used promotional tactic used by online businesses to attract customers. When done right, it can lead to:
• Acquire new customers
• Increase sales
• Earn repeat customers
• Get rid of unsold inventory
• Maximize profits
But when done wrong, it can lead to:
• Reduced value perception
• Decreased profits
The right type of discounts can maximize sales, prevent shoppers from abandoning their carts, acquire and retain customers. Here are our top favorite discounting tactics!
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Offer customers the opportunity to receive an additional product for free or at a heavily discounted price when they purchase a specific item.
Create a sense of value to drive more sales and repeat purchases.
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Offer quantity based discounts for customers making bulk purchases. Include a free product or a percentage off on the total to create a sense of savings.
Example: Buy 3 and get 1 free, 10% off when you buy 5 or more
Let online shoppers build their own bundle by giving them the ability to pick and choose the items they love the most.
Offer a collective deal on the bundle to sweeten the deal and make more sales.
Offer fixed or percentage off discounts when a customer meets pre-defined spend thresholds. Remember to calculate your median order value or AOV before building discount tiers to ensure discounts result in customers adding more items to the cart.
Example: Get 10% off on purchases above $150, Get $100 off on purchases above $500
Use product and order data to create bundles out of items that are frequently purchased together by similar consumers.
Cross-sell items at attractive prices in the bundle to increase average order value.
Offer discounts when customers purchase a set of products together. These can be pre-curated bundles or build-your-own-bundles from defined product categories.
Example: Buy x and y together to get 10% off, Add 5 items to your bundle and get 15% off
Offer a combination of items that are intended to be used together or complement each other, providing convenience and value to customers.
Create multiple bundles based on seasonal trends, themes and more.
Offer customers free or discounted products when they buy another product of equal or higher value. Also commonly known as a 2-for-1 deal.
Example: Buy 1 get 1 free, Buy 1 get 4 free, Buy 1 get 20% off on the second
Allow customers to choose from a selection of products to create their customized bundles and still avail a discount.
Give customers more flexibility and cater to individual preferences to enhance customer experience.
Give customers the benefit of free or discounted shipping on orders meeting a minimum threshold to create a win-win experience.
Example: Get free shipping on orders above $500, Get 10% off on express shipping for order above $500
Give customers the ability to receive a set of products repeatedly over time, in defined durations - weekly, monthly, yearly, and so on.
Secure your repeat purchases by offering convenience to customers.
Create special discounts for first-time buyers to attract new customers, and exclusive discounts for those who buy from you repeatedly to boost loyalty.
Offer member discounts for those who signed up for a customer account on your store.
Example: Get 10% off on your first purchase, Exclusive 15% off for being our loyal customer
Set up ‘buy more pay less bundles’ to encourage consumers to add more items to the cart.
Offer a discount or reduced/ free shipping on the bundle based on the number of items being purchased.
Promote discounts that are available only for a limited period of time to create a sense of urgency around the purchase and boost your sales.
Example: Get 50% off on all products for the next 24 hours
Create bundles that bring together items based on shared product variants to increase the overall perceived value.
For example, a bundle that recommends purchasing a pair of gold earrings with a gold pendant to ‘get the full look’.
Create special discounts during holidays or specific seasons to tap into the purchase-ready mindset of consumers and drive more sales.
Example: Christmas sale, BFCM sale, Summer discounts
Create bundles targeted at promoting new products or clearing old inventory to get your stocks moving.
Combine these products with fast-selling items along with a discount to drive more sales.
About 69% of online shoppers abandon carts. Nudge exiting visitors or bring back shoppers by sending them a special discount on the cart total.
Example: Come back and complete the purchase to get 15% off on cart total
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There is no one size fits all approach to discounting and that’s why our experts follow a process before recommending any of the strategies above.
In-depth discovery call to understand your brand, target audience, current challenges and business goals.
Deep dive into audience segments and competitors to understand purchase power, motivation and preferences.
The team shortlists the best discounting strategies for your Shopify store for each segment.
Our team continually monitors the performance of discounts and optimizes them for more sales.
We find the best Shopify apps and solutions to set up the discounting strategies on your store.
We help you set up custom integrations with the best Shopify apps in order to create seamless shopping experiences that create more opportunities to increase AOV.
No matter which apps you’re currently using on the store, we’ll also help you migrate to solutions that help set up our strategies to increase AOV.
Engage with our ecosystem partners and unlock product integrations and co-marketing opportunities targeted to 5K+ merchants.
See how global brands are using different discounting strategies to increase their sales and profits.
The customer service is outstanding. We had a customer reach out with some questions that I wasn't sure of how to answer. I immediately reached out via chat support to Sid, and received a response within 5 minutes that solved my issue. Thank you for a wonderfully designed app and for superb customer service!
This app hands down is the best one out there! They understand what small businesses are looking for and the app is super intuitive. Surya was very helpful and super patient with us on our onboarding call. If you're looking to add a custom "build your own bundle" feature to your website. You need to get this app! You won't regret it!!!
Our Shopify experts frequently share discounting tactics, best practices and examples on our blog to help you acquire new customers.
Speak to our experts to explore the best types of discounts for your business to maximize both sales and profits.
While there is no one-size-fits-all approach, percentage-based discounts are the most commonly used and successful because they give the impression of greater savings. This discount strategy is also more versatile and can be tailored to different products or sales goals.
There are definitely pros and cons to discounting if not done strategically. The pros include a boost in sales and gaining new customers. But excessive discounting can lead to financial loss and harm brand reputation. We’ve shared a detailed cost benefit analysis on our blog.
Discounts can help re-engage customer interest and bring them back for more purchases. But to boost customer loyalty, you need to create a sense of exclusivity around your discounts, giving a segment of customers special deals and benefits.
We are a team of passionate individuals, all driven by a singular goal - to help our merchants succeed.
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