When it comes to selling your product, “discount” can be a tricky word. On one hand, discounts can be great for luring new customers or bringing back old ones, and they can also help move old inventory. But on the other hand, discounts often attract customers who are more price sensitive and less brand loyal. Discount purchasers are less likely to come back for more.
The reason is simple. Although you are giving buyers a reason to purchase (my wife would gladly trade my left arm for 40% off a yoga mat), you’re not giving them any reason to be charmed. There’s no interaction, no engagement, no reason for someone to think, “Wow, this company really is something.”
But all is not lost! There’s still room for the discount in our highly connected, prove-that-you-deserve-my-loyalty-or-I’ll-go-online-and-find-someone-who-is world. Enter the social discount.
Part traditional discount, part social networking, the social discount allows you to attract price sensitive customers and strengthen your company’s brand. The next time you feel the urge to blanket the town with 10% off coupons, consider using one of these social discounting methods instead.