Are you a luxury brand? Discounts = not a luxury brand. They cheapen the perception of the value of the product.
When you use a discount code during sales, customers internalize the reduction in price as the true value of the product and can be reluctant to purchase your products again at full price. You can get stuck in an endless loop where discount-driven sales are the only way to break your no-purchases drought.
The fix? Provide a gift with purchase (GWP) instead of the discount. A GWP gives the same increase in value that discounts do to drive your customers to buy. However, it does so by increasing the perceived value of the sale rather than decreasing it. This preserves your brand and product value while still driving your customers to buy!
- What's your thoughts on discounts for luxury brands?
- Are you using gift with purchase in your sales today?
- If so, what tools do you use to do it?