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Should I be offering discounts to my customers?

Image of Olivia Orme
Olivia Orme
Couple online shopping on their laptop at home

It’s no secret that everyone loves a good deal. Whether or not that means scoring a discount at the mall, or during an online shopping spree, there is something highly satisfying about seeing your total savings at the bottom of a receipt.

If you love saving money, you can probably guess that your customers do too. Offering coupons, discounts, or other promotional deals, is something every customer enjoys.

As a home service provider, you might be wondering if you should offer discounts to your customers, or if that is limited to the world of retail. The truth is, because the home service industry requires hefty investments from your customers, it’s important to offer deals and promotions to your audience for a number of reasons. Trust us, as a small business owner,  there are plenty of long term benefits to customer discounts - for starters, it can help promote good business branding, and create long term customer loyalty.

Do you want to learn more about the impact of offering discounts to customers? Take a look at the massive rewards those small savings can bring your business.

Showcases the Quality of Your Products

During most shopping sprees, while we love a good deal, we don’t always go for the cheapest option. Generally, products with a price tag too good to be true, make us suspect the quality, care, and condition of the product or service we’re receiving. However, seeing a reasonable promotion or discount doesn’t send the same waves of concern to your target audience. Instead, they think about the quality of the deal, and won’t hesitate to make a purchase. Plus, seeing a few discounted products might entice them to learn more about your company, and explore the rest of your inventory or services.

A discount sends a powerful message to your customers, primarily that you value their investment, and want to keep things accessible for them. Your customers won’t feel as if they’re compromising on quality, and it can end up increasing your sales in the long run.

Expands Existing Customer Bases

One of the best ways to generate new leads is by offering discounts. Discounts aren’t confining your customers to explore one product or service on your website - they’ll want to learn more about your business and other existing products, which will help improve your online leads.

A discount or promotion is just one way to entice potential customers to become loyal buyers. Think of the discount as a short term compromise on a long term investment. If you promote deals on your Facebook ads and boost Instagram posts that promote various services, it will continue to drive your overall sales forward. Plus, it can provide additional exposure to full-price items, and help your website gain more traction.

Discounts are an easy way to generate new leads, simply because they create an additional incentive. Other services like free shipping, or coupon codes around the holidays, are bound drum up excitement as well!

Increases Sales

Discounts give people an incentive to buy, which in turn, can generate an increase in overall sales and company revenue. While you might be wondering, how much is too much, it’s proactive to offer various discounts year-round, so you can continue to increase your revenue, and help grow your business in the offseason. These can be as little as ten percent, or upwards of twenty percent - whatever is best for your company. The smallest discount code can make a world of difference to your customers, and sparing their wallet in the short term, can create long term relationships and sales.

For instance, on your online store or website, offer two consistent discount codes: a loyalty program for repeat customers, and new customer discounts. By creating various incentives, you’ll be able to retain loyal customers and encourage new ones to buy your products. That 10% off your first purchase might not seem like a lot, but to your new leads, it builds trust right away.

Should You Be Offering Discounts to Customers?

There is nothing wrong with offering discounts to customers - in fact, it can really help your business, if done the right way. It’s just important to remember what deals will, and won’t work, for your company. Approach customer discounts like listing online prices - a potential way to gain customer loyalty.

If you’ve been brainstorming innovative ways to grow your business, Nu is here to help. We love nothing more than brainstorming with our clients, creating strategic marketing campaigns, and getting you the results you’ve been searching for. For more tips, check out The Best Customer Service Practices: Six Secrets to Happy Customers. Schedule a discovery call to jump-start your path to success.

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