If you run your own business, chances are you’ve probably considered offering a discount or running a sale to move some old stock, attract new customers, connect with existing ones, or just get a quick injection of cash.
Whether your focus is on your brand or your bottom line – offering flash sales, discounts and promotions are a great way to achieve your business goals and build trust and loyalty with your customers at the same time.
Depending on what you do, you might think that you don’t need to offer specials or deals, because customers will come to you no matter what. But! No matter how great your service, people need to feel valued. Customers will always value businesses that value them back.
There is also an art to running sales and promotions effectively. If you’re not careful, offering too many discounts can actually devalue your brand. People may think that your services are too good to be true, or that you’re struggling for business. That’s, *cough cough* – never a good look.
So! How do you offer promotions that are significant enough to make sure customers feel like they’re getting a good deal, but not so low that it looks like you’re desperate for business? Check out these tips and ensure your sales and discounts strategy doesn’t won’t take a wrench to your reputation.
1. Set a clear objective
Before offering any sale or discount, it's important to have a clear objective in mind. What do you want to achieve here? Is it to clear old stock? Celebrate a public holiday? Or reward loyal customers?
This is important, because when you offer a sale or promotion, the customer gets a sweet deal – but what about you? Whether your aim is to grow your database or get some positive PR, you’re offering something your customer wants (i.e. a discount) for something you want in return (i.e. their email address).
Let’s say you want to find new customers. You might come up with the idea for a first-time customer discount. Make sure you think about what will happen after they’ve taken your discount. Will you follow up with them after their visit? Will you give them a freebie (like a branded air-freshner or magnet)?
Having a clear objective will help you determine the type of sale or discount you should offer, how to market it, and how to make your money back on that initial sale in the long-term.
2. Time it right
Timing is everything when it comes to making the most out of your sale or promotion.
It might be tempting to offer discounts when business is doing well – like during the busiest part of your year, for example. However, when business is slow and you’re tempted to offer the same discount, you’re more likely to devalue your service.
When you put yourself in your customers shoes, magical things can happen. You could come up with a special deal that aligns perfectly with their habits, hobbies and interests.
3. Put a limit on it
Speaking of timing… put a limit on your offer, too.
Offering unlimited discounts can make your customers think your services aren't worth their full value. Set a limit on the discounts or run promotions for a set period of time to create a sense of urgency.
This can also help to ensure that customers will feel like they’re getting a good deal, and not like you’re desperate for their business. You know – hold onto that ‘ya snooze, ya lose’ kinda energy.
4. Keep it exclusive
You can also manage the perceived value of your discounted services by ensuring that your specials are offered to loyal customers, newsletter subscribers or those who follow you on the ol’ socials.
You could try building an email list* so that you can promote seasonal sales to a select group of clients who are already regular customers, and quite likely to take you up on your offer. Over time, a segment of customers like this, who continue to find value in your offers, will make it easier for you to iterate and improve the kinds of promotions you run – both for them and your business.
*Not sure you want to bother with emails? You could create a Facebook community group. Or, if you use instagram – add your most loyal clients to your companies’ ‘close friends’ list, and post member-only announcements to this group on stories.
5. Keep your regular prices competitive
You don't want your regular prices to make your customers feel like they're getting ripped off! Keep them competitive and make sure your discounts are an added bonus.
When you offer a discount, you’re not necessarily saying “my service is worth x”. Instead, you’re showing your customers that you care about their wallet and their satisfaction. If you want to build trust with your customers, don’t tell them you value them – show them!
6. Personalise your promotions
Show your customers that you appreciate them by offering personalised deals or products.
You could offer a 10% discount, or a 2-4-1 deal. These could be given to your long-term customers, and those who refer new business to you respectively.
Or, come up with some fun freebies or promotional products. If you have customers that appreciate the simple things, you could print a run of business cards that include space for a handwritten thank-you note on the back.
We also like the idea of stocking a few different types of freebies so that you can personalise your promotions customer-to-customer. Think about what segments you can tease out your audience into, and suss some products that’ll float their boat (e.g. different t-shirt styles, sizes and designs for men & women).
7. Bundle all the way
Instead of offering discounts on individual services, bundle them up with other services to create package deals.
For example, if you’re a mechanic, you could offer a combo deal on an oil change and tyre rotation. Or, you could run a sale where two particular services booked during a certain month (perhaps during a quiet time for your business) gets a complimentary t-shirt.
This way, you're not devaluing your services individually, but incentivising your customers to spend their money with you at a time you need it. And they’ll hopefully be proud to wear your branded merch out there in the wild, too!
8. Never sacrifice quality
This sounds like an obvious one, but we’re going to say it anyway: offering discounts doesn't mean you can skimp on quality! Maintaining the same high-quality service during promotions is how you can demonstrate and exaggerate your value to your customers.
It’s upholding quality throughout promotions that will keep your customers coming back for more.
On a personal note… you can rest assured that the range of products and apparel we provide is always good quality, made to last, and all come with warranties. What use are rego pouches that tear, or WOF stickers that don’t stick?! When we say quality, we mean it. If you’re not convinced, just ask Sam, our official Product Tester ;).
9. Stay true to your brand
Don't offer discounts that don't fit with your brand image. For example – if you're a high-end service provider, it might not feel right to offer discounts. If you think it will risk damaging your brand or reputation, it’s not worth it.
Instead, think about strategic partnerships or fun collaborations with other like-minded businesses, non-profits or clubs. It could be an event, a social media competition, or a branded product you design in collaboration with a local charity.
If a discount on your service isn’t the answer to achieve your business objectives, perhaps some branded merch is? If so – we’d love to help! Get in touch with us today.
Whether you bundle up services or offer a one-time discount to first-time customers – sales and promotions are an excellent way to make some extra cash, build your customer base, increase brand awareness, and keep your customers coming back year after year.
However, it's important to set a clear objective, and to consider how you’ll use selling strategies to your advantage to uphold the value of your service and your awesome brand. Happy selling!
