I have noticed that there are so many E-commerce websites offering discounts because:
- It’s what they read somewhere online
- A guru told them to do so
- Most eCommerce websites are doing it
The discounts sound like:
- “Get 30% off these…”
- “Get 20% off your first order…”
- “Get 10% off this…”
Sure, offers like this can generate interest and increase sales.
But I believe discounts teach your customers to buy when you have discounts available.
It can also be a race to the bottom unless you’re Walmart and you can make up for it in volume sales.
Discounting just sets up a bad precedent in the long run. People will always expect it.
Look at https://store.ferrari.com/ which is running a sale at the time of writing this post.
You don’t see them offering discounts for first-time visitors.
Sales are okay from time to time.
If you haven’t installed HotJar, please do so and run some tests.
Also, be patient and look at the Customer lifetime value (CLV) of your customers.
Don’t just take my word for it, go do the tests yourself.
Instead of discounting, what if with every sale of a pair of shoes, you gave out a shoe style guide, a shoe cleaning guide, etc?
Then, you would be able to charge full price to first-time customers.
Instead of discounting, you would be adding something that’s meaningfully different from your competitors.
Rather than cheapening your product, you increased its value.
Comment below what you sell and I would be happy to suggest how you would add value instead of discounting.