Many companies are accustomed to using various loyalty systems in their work with clients. These may be bonuses, special promotions or discounts, both seasonal and permanent. However, you shouldn’t get too carried away with these offers, because they may lead to the loss of other sources of customer acquisition or even cut into your bottom line.

Let’s try together to figure out how to offer clients discounts properly and what information is better to send.

First, let’s look at what it may lead to if you offer clients certain discounts on an ongoing basis.

Discount = unjustified prices. If you are constantly offering consumers discounts on certain products, then customers may get the impression that the usual prices for these products are too high. In reality, though, you may have just offered a discount to attract attention.

Discounts are addictive to customers. Having received a discount once, clients will understand that they may receive them again in the future. As a result, the total potential revenue that may be obtained throughout the entire cycle of cooperation with the client may be significantly lowered.

Discounts distract from innovation. If you are used to solely attracting customers with discounts, then you may stop developing as a marketer and miss out on many other attractions and development tools. As a result, you might miss out on profit.

Discounts = lost profit. Often, clients are ready to purchase products without discounts; all that is needed is to present the product in the right way. However, the sales system policies of many companies say something like “offer a discount right away to encourage purchases,”. Of course, clients who have already decided to make purchases are happy to accept discounts when they are offered. In these cases, the company loses additional income which could have been usefully reinvested in the modernisation of the product or the company, allowing you to improve your competitive position.

Discounts = weak competitive advantage. Companies often try to stand out from the competition with only one competitive advantage – low cost, due to a high level of discounts. This approach harms not only the company itself, but also the market as a whole, as it leads to the appearance of spoiled buyers. These aren’t willing to pay more than the minimum cost for products, for which, in fact, the markup may be quite small.

Of course, discounts are needed, because they are also one of the tools for attracting customers. However, it’s not the only one. You need to use and offer them wisely in order to increase the loyalty of your customers and attract new ones. We will talk about how to do this in our next article.

If you have already worked out your strategy for using discounts, to bring you a constant income, attract new clients and increase the level of loyalty of old ones, then it’s time to tell people about it via SMS mail-out. To do this, just log in to the Intis Telecom platform. It’s completely free.