Creative Nomads

How to Successfully Offer Discount in Your Business

Everyone enjoys a good deal. Who doesn’t look forward to super savings on Black Friday? I’ve personally waited in the cold morning outside of BestBuy waiting for killer doorbuster deals, have you?

With so many consumers accustomed to receiving coupons, discounts, and other promotions, a strong promotional strategy is essential.

So the next question is in regards to budget. How much money do you spend to acquire new customers when you sell products?

Businesses that run a sale or promotion can often expect a rush of new and existing customers as well as an increase in sales. However, there is an art to providing a discount because businesses do not want to become reliant on them for sales. That would potentially hurt the profit margin. It should be done strategically.

It’s not always as simple as flinging open the doors (or virtual ones) and yelling, “Everything is 40% off, come on in!” So let’s just walk through the basics.

Why Should a Company Provide Customer Discounts?

Discounts can be a powerful tool in your conversion arsenal for increasing customer loyalty.

If your company is still in the pre-launch stage, or if you’re launching a new product, you can use pre-launch offers to drive traffic and pique interest, converting new customers into loyal customers.

Sales discounts can be targeted to attract specific demographics in some cases. Businesses frequently run promotions that offer discounts to seniors or students. This strategy is an option to consider if you want to focus on and attract a specific customer base.

There are various types of discounts to offer, each with a goal that aids a business’s success. Let’s look at the various types of discounts (or offers) that a company can provide:

Seasonal offers

This is a discount that you provide at a specific time of year, such as Black Friday or in January to celebrate the new year. Customers have come to expect sales at this time of year as more and more brands choose to hold them.

Many small businesses are offering limited-time percentage discounts on full-priced items to encourage purchasing and finding creative ways to provide value to their audiences, whether it is on social media or in-person.

Limited time offer

This is a special offer that is only available for a limited time. For example, you could hold a 7-day flash sale on your products or services. It’s a method of enticing customers to act, using the scarcity factor of not wanting to miss out on the deal.


If a customer has previously purchased from you, they are likely to do so again. They already recognize, like, and trust you. Use an upsell at the checkout to encourage a second purchase. Alternatively, after a purchase, you can include an offer in your email automation.


You have the opportunity to pre-sell a new product or service to your existing audience before bringing it to market. Before you create anything, you offer your product or service at a reduced price for a limited time. A pre-sale validates your idea by customers saying “yes” to wanting it with their wallets. Pre-sales provide you with immediate cash, which can be very beneficial for many businesses.

Clearance of stock

Every business that keeps product stock will need to clear out their old stock at some point. This is an excellent time to have a sale on that product in order to clear your inventory and make room for the next products you want to sell.

Bundling related items together at a discounted price, for example, can help meet sales targets and engage existing customers. If a customer is already planning to purchase one item, displaying a bundle can increase their total purchase and introduce them to new products they are likely to enjoy.

Loyalty program

In exchange for certain benefits, a loyalty program encourages your customers to continue purchasing from you. These benefits could include points that can be redeemed for discounts on future purchases, or they could be as simple as collecting stamps to get a free coffee or dessert.

VIP Discount

This is similar to a loyalty program, but it specifically rewards your VIP customers. All customers are important, but some spend significantly more with your company. By rewarding your VIP customers, you can turn them into brand champions – people who will shout about your company from the rooftops.

Final Point

So let’s land the plane.

Increasing sales is a common goal for businesses that offer discounts, so you also must set your sales targets. Knowing the goal will help you craft the plan.

Offering customer discounts is a strategy. A tried-and-true strategy for showing appreciation, driving sales, and improving brand loyalty. Plus, using a discount strategy adds a layer of urgency to your customers’ purchasing journey.

Want help crafting the perfect offer or optimizing your website? We seldom provide discounts, but we do provide a FREE website audit.

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About the Author

Jason Rutel is the founder of Creative Nomads, a dynamic agency centered on enriching donor engagement for nonprofits and global missions organizations. With an impressive track record in web design, videography, and branding, Jason brings innovative communication strategies that drive mission-focused initiatives.

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