Likely Sales offering discounts is one of the most effective ways to attract customers and increase sales. However, knowing when to offer discounts can be a challenge for businesses. Offering discounts at the wrong time can actually hurt sales and profits. On the other hand, offering discounts at the right time can significantly boost sales and revenue. In this blog, we will discuss the best time to offer discounts for likely sales.
Understanding the Sales Cycle
Before we dive into when to offer discounts, it’s important to understand the sales cycle. The sales cycle consists of four stages: awareness, interest, decision, and action. During the awareness stage, potential customers become aware of your product or service. During the interest stage, they show an interest in your product or service. During the decision stage, they consider whether to make a purchase. During the action stage, they make the purchase.
Knowing where your potential customers are in the sales cycle can help you determine when to offer discounts. For example, if potential customers are in the awareness or interest stage, offering a discount may encourage them to move to the decision stage. However, if they are already in the decision stage, offering a discount may not be necessary and may even harm your profits.
Best Times to Offer Discounts
- During Holidays and Special Events Offering discounts during holidays and special events is a great way to attract customers and increase sales. Holidays and special events create a sense of urgency and customers are more likely to make a purchase if they believe they are getting a good deal. For example, offering discounts during Black Friday or Cyber Monday can significantly boost sales.
- End of Season or End of Product Line Offering discounts at the end of a season or end of a product line is a great way to clear out inventory and make room for new products. Customers are more likely to make a purchase if they believe they are getting a good deal on a product that will soon be unavailable. For example, offering discounts on winter clothes at the end of the winter season can help clear out inventory and make room for spring clothes.
- After a Customer Has Abandoned Their Cart Cart abandonment is a common problem for online businesses. Offering a discount after a customer has abandoned their cart can help bring them back and complete the purchase. For example, sending an email to a customer who has abandoned their cart with a discount code may encourage them to complete the purchase.
- When Launching a New Product or Service Offering a discount when launching a new product or service is a great way to attract customers and generate buzz. Customers are more likely to try a new product or service if they believe they are getting a good deal. For example, offering a discount on a new software program during the launch can encourage customers to try it out.
- During Slow Sales Periods Offering discounts during slow sales periods is a great way to attract customers and increase sales. For example, offering discounts during the off-season for a particular product can help boost sales and keep customers interested.
When Not to Offer Discounts
- When Your Profit Margin Is Already Low Offering discounts when your profit margin is already low can hurt your profits even further. It’s important to understand your profit margins and determine if offering a discount is worth it. If your profit margin is already low, it may be better to focus on other strategies to increase sales and revenue.
- When Your Product or Service Is in High Demand Offering discounts when your product or service is in high demand may not be necessary and can even harm your profits. When a product or service is in high demand, customers are willing to pay full price. Offering a discount may make it seem like the product or service is not valuable.