India is a very price sensitive market. Discounts are one of the biggest sale drivers in products and services with low differentiation. Discounts across the year is now a common phenomenon, both in offline and online shopping in India. These discounts are also one of the biggest reasons of increasing consumerism in both urban and rural markets in India. Discounts bring a lot of new customers and helps customers sitting on the fence to try out the purchase leading to addition of new customers. Discounts lead to lot of cross sell and upsell.
Coupons, deals, discounts and offers, all are a powerful weapon to help your brand generate added revenues and a surge in your business. The product and category plays a crucial role in using discounts to drive a conversion and ultimately a surge, that is profitable. With increased focus on upsell and cross sell techniques at just the right occasions engages your customers and let’s them take that discount plunge.
Companies these days play a lot around the current trends. The need of the hour is to bank on the practices that are contemporary and with the current market flow. Special discounts when clubbed with the right perks and audience have ensured a stable inflow of bookings. Fashion, lifestyle and travel industries are targeting audiences on a mass level to provide group discounts. Xoxoday provides attractive offers on corporate group bookings, catering to a large group and ensuring bulk bookings.
Flash sales are another means of alluring customers by giving discounts that are on the higher side and more significant than the usual run-of-the-mill promotions. They are valuably tactic and provides products and services at significantly reduced prices for a limited period of time. This is to mainly leverage the urgency that has been created to buy that product vs the actual need of it.
A social media campaign triggers a certain emotion leading to a frenzy. A coordinated marketing effort with an effective pricing strategy can totally be masked into a discounted campaign. These discounts increase the focus, targeting the measurability and surge in the overall business. Cross campaigns touch a wide consumer base without much investment, with an interaction on various touch-points, levels and times. The right platform, timing and association paves a way for a good piggy-back strategy. With an added brand equity and influencer marketing tactics, even the niche segment is roped in to build in positive reviews and opinions to make quick purchase decisions.
Effective-elaborative-engaging-event based discount campaign can be designed around multiple factors. Action-gate people to interact on social media posts by the means of polls, quizzes and review. Offer exclusive discounts, points, prizes for added attention, information and word-of-the-mouth publicity. Making the discounts customized and tailor-made for a particular campaign makes sense to bring in an overall upsurge. To engage your customer base proactively by providing them with opportunities to reinforce a positive sentiment for the brand with added cashbacks and increased spend. Adapt to the campaign metrics to carefully monitor your revenue generated over the amount invested.
For generating the right surge, make your customers feel positive about your product or service, help them chose your products over the competitor’s. Holistic approach for the discount model forms a differentiating factor and provides you an edge over the normal discount schemes. Your discount goal should be to acquire new customers, increase your sales considerably, gain repeat customers and get rid of the old inventory.
Event based discounts for occasions like a Women’s Day will revolve around tapping the right chord to create a scenario of improvised discounts that are aimed at increased customer acquisition, enhanced conversions and an added customer loyalty. Your discount strategy is equivalent to deciding your brand strategy in terms of positioning and yourself and achieving your sales goals. The crux here is to consider if the offer is attuned to your business strategy. A lot of experimentation is involved to understand what works out the best for your business.
Discounts form the lifeblood of many business models at special occasions. Making the upsell relevant to the customer’s original purchase is the key. There’s always a good surge in business whenever there is an event based discount. Whether it is an independent brand or a co-branding promotional campaign, consumers show higher purchase volume during this period. Discounts run in collaboration with payment companies like wallets, credit or debit cards work well most of the times.
Discount led marketing is here to stay in India. However, brands need to do lot of innovation around how the discounts are structured and promoted. A me-too discount marketing leads to fatigue and does not work well. This has been seen across brands where ‘Sale or Discount’ has been over done and such brands over a period of time, have lost consumer confidence. Discounts are good, but brands should play it well and effectively.
The article has been penned down by Sumit Khandelwal, Co Founder, Xoxoday