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In fact, they recently moved to a membership model to grow their business faster.CleanMyMac X is a powerful and beautiful application to keep your Mac clean, fast, and protected. MeUndies are a good example of a brand that understands the importance of continuity. Most companies can afford to do this because they know it will increase their customer lifetime value (LTV) and recoup it on the back end. If you want to incentivize prospects to choose a subscription over a one-time purchase, you can offer a discount on your subscriptions. In fact, brands like Harry’s, MeUndies, and Brushbox, to name a few, now offer subscriptions to help improve customer retention. And the quicker and easier they can get their hands on what they need, the better. Today, consumers are looking for convenience above all. There are many ways to improve customer retention.īut one of my favorites is creating a subscription for your product. So, taking the above example, I would go with the 20% discount because it seems higher than the $5 discount, even though the savings are the same no matter what you choose.Īgain, it’s a balance, and it might be worth testing which type of discount works best for your audience and the product you’re discounting. When you discount your products, you need to consider if you want to offer a percentage discount or dollar amounts.Īs a rule of thumb, you should go with the option that has the highest perceived value.

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So don’t offer large discounts on new products, and make sure that the discount is only a small percentage of the full price of the product.įor example, the price of the coffee from Red Rooster Coffee Roaster is $25.99, so that’s about a 20% discount. It’s important to mention here that you need to be careful when offering discounts on new products.ĭiscounting a product before it’s launched can devalue it in the prospect’s mind. They added scarcity to the email by limiting the discount to the first 30 orders.īy doing so, they make the offer seem more exclusive which drives more traffic to the new product. Instead of asking new visitors to buy this early into the buyer’s journey, you should ask them for a smaller commitment-like giving you their email address in exchange for a discount code.

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So offering them a discount code to use right away, isn’t always the best strategy.

When a visitor first enters your site, they might not be ready to buy. Let’s have a look at how and when to use discounts, and what the alternatives could be. Maybe you want to discount discontinued items to clear out inventory and not to increase revenue. Your discounting strategy should always depend on your business goals and the individual visitor. There are countless ways to use discounts to get more leads and sales for your online store. Follow Up with Event Attendees How and When to Use DiscountsĪnd I can’t tell you if you should use them or not. Reward Referrals from Existing Customersĩ. Use Early-Bird Discounts for New ProductsĦ. Nudge New Visitors with a Special OfferĤ.