In this manner, you can leverage discounts and grow your customer base without hurting your margins or diminishing your brand value. Consider offering exclusive discounts to specific customer groups instead (like students, healthcare workers, military, etc.). Offering discounts to everyone can be a huge risk to your overall profit margin. Consider offering discounts to specific customer groups Besides, discounts may project your own lack of confidence in your brand and establish a lower perceived value for your products.
Consumers can get used to price reductions quickly and many won’t stick around when your prices go back to normal or increase. While sales discounts can be an effective means of generating quick revenue, make sure you’ve carefully considered all the risks and potentially disastrous pitfalls. Beware of the possible negative impact on your brand Remember that big discounts are likely to attract deal shoppers, meaning your newly attracted buyers aren’t going to convert into long-term customers in the future.
Image courtesy of Top News In World Make sure your discounts will attract your target audienceīefore running any sales campaign in an effort to gain new customers, consider whether your discounts will actually attract the type of customers you really want.