Everyone is attracted to a deal, no matter how large or small. By incorporating coupons and discounts into your overall marketing and pricing strategies, you’re already appealing to the minds of shoppers. Customer referrals make a deal even stronger for a shopper because the research component needed has been removed. But offering discounts to remain competitive without considering customer behavior, as well as the effect on your business, will only set you up for diminished returns.
Beyond simply appealing to the notion of helping shoppers save money, discounts also have an affect on how consumers interact with your products and brand. Studies show that the offering of a coupon or discount can dissuade customers from comparison shopping. This is because discounts create a sense of urgency to purchase, which distracts shoppers from looking for other options. The impact of disincentivizing deal-seeking is particularly important for shoppers.
There are obviously numerous ways to market to your current and new customers. What advertising and customer acquisition methods you use and how you use it them are vital to its overall success. Customer referrals, for instance, create a sort of mini bond between the referrer, referee and the business. Customer loyalty increases significantly when a new customer is introduced to a new business via referral. Studies show that customer referrals are the most effective and also the most affordable way to attract new customers. So what methods are you using to bring new customers into your business?
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