The holiday shopping season is already here and that means it’s also discount season. However, whether you’re offering discounts on holiday specials or putting together your 2015 pricing plan, there are some helpful stats you should know about offering sales and markdowns. Let’s dissect 10 relevant statistics related to offering discounts:
1. About 93% of Shoppers Use a Coupon or Discount Code Throughout the Year
This means that the vast majority of consumers are seeking a good deal. Everyone appreciates a good deal, right?
Maybe it’s more accurate to put it this way: Everyone appreciates thinking they’re getting a good deal, even when they aren’t. Recognize that people do indeed seek discounts, but they must be implemented properly to earn the rewards.
2. A 50% Increase in Quantity Is the Same As a 33% Discount
If you do the math, you will understand that this statistic is true.
It’s simple enough, but consumers fail to realize this and will typically opt for getting more instead of paying less. When planning your brand’s next discount, consider offering a larger quantity before offering a reduced price.
3. You Can Sell Up to 73% More if You Offer a Bonus Pack
Going along with quantity over reduced price, one study showed a 73% increase in the sale of lotion in a value pack. Consumers opted for the larger quantity over the other option, which was a reduced priced for a reduced quantity, but at the exact same price.
4. 30% of People Purchase to Gain Something and 70% Purchase to Solve a Problem
When applying this statistic to discounts and sales, don’t forget to offer insight into how your brand will make lives easier, solve a problem, or provide something to simplify everyday life. People like to think their purchases will help them in some way, whether it’s the simplification of a process or time savings.
5. Statistics Show That Marketing Messages Affect Buying Behavior
This is a given, but so many sales teams fail to realize consumers’ visceral reaction is to avoid pain and approach pleasure.
In discount marketing, this means you must strategically word the discount. Instead of offering 50% off, opt for “buy one get one free.” Consumers love to get (or think they’re getting) something for free.
6. Seven Out of Ten People Reported Using an Emailed Discount in the Previous Week
This statistic proves that, regardless of the varying opinions out there, consumers are receptive to email marketing campaigns. If you aren’t employing email marketing, your sales team might want to consider it.
7. 75% of Consumers Report Scouring Their Inboxes Just to Look for Relevant Discounts
This is yet another statistic that proves the power of email marketing. People have come to rely on their inboxes as a possible source for locating a good discount. Don’t disappoint your customers.
8. 55% of Consumers Receptive to Email Marketing Prefer Money-Off Deals
Even more popular than free shipping and loyalty rewards, consumers want a price deduction before anything else. This means that consumers are drawn to a price reduction, but this shouldn’t negate the effectiveness of offering free shipping.
9. Consumers Are Four to Five Times More Likely to Make a Purchase if You Offer Free Shipping
Free shipping attracts consumers almost as much as offering something for free. Studies show that people are more likely to buy something at $5 with free shipping and pass it up at $2.50 with a $2.50 shipping fee.
10. Studies Confirm That Consumers Associate Discounted Products With a Lack of Performance
Double-blind studies prove that consumers believe that discounted items do not function as well as items at full price. This relates to selling used items as well. Offering used items can work in just about any industry, as long as you’re strategic about your approach. The same is true for discounts of any kind, new or used. Be sure to offer a good reason for the discount, such as any of the following:
- This season. Seasonal deals, sales, and discounts make sense in the buyer’s mind. Associating a discounted rate with a particular season is a wise move and won’t likely come with negative implications.
- Bundled deals. Consumers tend to resonate with bundled deals because they typically seek quantity. This is good for you because it also means an increased sales transaction.
- Prepaid discounts. This is a win-win. Consumers get a discount that they don’t feel hazy about, and you keep your accounts receivable current.
Discounts drive marketing, so it’s imperative that you properly utilize them to gain the most from your sales efforts. Remember that when you impose a discount, you are typically shifting the focus from your product and instead placing it on the price. Keep in mind that if you engage in discounts too often, you will never escape your brand being synonymous with a markdown.
Be strategic about offering discounts and consistently re-evaluate your marketing plan – and your sales team will be more likely to succeed.