In today’s world, customers are always searching for a good deal. Thanks to the internet, consumers can easily compare prices between different stores, allowing them to get the product they want at the best possible value. For businesses hesitant to give out discounts, this can potentially serve as an issue.
Some businesses view discounts as unfavorable, only something that devalues their brand and products. The truth is, discounts affect every part of the shopping experience, from customer acquisition to brand loyalty and brand perception, and the statistics are illuminating. In a survey by RetailMeNot, two-thirds of consumers responded that they had made a purchase they weren’t originally planning to make solely based on finding a coupon or discount.
Many businesses should consider the use of discounts to stay competitive. There’s no better way to give out discounts to consumers than using a discount card program. Are you interested in setting up a discount card program at your business? Here’s a guide on creating an effective discount card program.
So you’ve decided to give a discount program a chance, that’s great! You might be wondering what a discount program is - a discount program allows businesses to provide discounts to customers who choose their business. Discount programs can be very similar to membership, loyalty, and rewards programs, and a discount program can be used in conjunction with any of those other programs. Discount programs are used by companies to help facilitate customer acquisition, expand customer loyalty, and increase revenue. Businesses of all sizes use them because they are useful in many different aspects.
When starting your discount program, the first thing you need to decide is what customers you want to give discounts to. Some businesses allow every customer to sign up for their discount program, while others make it more exclusive. Offering discounts to new customers helps motivate them to check out your business; 80% of consumers feel encouraged to make a first-time purchase with a new brand because they found an offer.
Other businesses only offer their discount program to loyal customers, providing them with a reward for frequenting their business. Some people also refer to this as a rewards program. This tactic can encourage shoppers to return to the business to get the discounts habitually. Another option is only offering your discount programs to certain kinds of customers like seniors, veterans, or students. All of these strategies have pros and cons, so you’ll have to decide which is the right fit for your business.
After deciding what customers you want to offer your discount program to, you’ll have to determine what discount you’re willing to give. Some discount programs provide customers with a certain percentage off of their total order, while others grant a specific dollar amount off.
Another thing to consider, do you want to give discounts on everything? Some discount programs discount work storewide, while others are limited to select products. Be sure to write the terms of your discount program on the back of your cards to safeguard your business.
Finally, you'll have to decide if your discount program members should pay a fee to get your company's discounts. This can also be referred to as a membership program. While Amazon does provide discounts to all customers, they also have their paid Prime program, which gets members further discounts along with a bevy of other benefits. Charging for your discount program can help boost revenue, but it can potentially dissuade some customers from signing up.
Why would you want as many customers as possible to join your discount program? One major benefit is that you'll get their email address so that you can communicate with them. Additionally, with a point of sale system, you can track their spending habits and other customer data, allowing you to market to individual customers more effectively. This strategy is called personalization, and 93% of businesses with an advanced personalization strategy experienced revenue growth in 2018. Basically, this plan can be an incredibly effective way of improving your business.
Once you’ve finalized how you want your discount card program to work, its time to order some discount cards. This is a relatively easy step, but there are a few things to keep in mind.
At Plastic Printers, we offer a free custom design for your discount cards. We also have bold design features available, like custom shapes and transparent elements, to truly make your discount cards a one-of-a-kind piece of art.
Once you receive your discount cards, you’ll have the final piece in place to run an effective discount program. Best of luck with starting your program; hopefully, you’ll find what so many other businesses have found - that discount programs are a great way to boost your business.