Sales periods are golden opportunities to boost your revenue, clear inventory, and attract new customers. But not all discount strategies are created equal. The success of your promotion largely depends on how you structure and communicate your offer.
Here are 6 types of discount strategies to test (and combine!) to maximize results during your sales events.
1. Percentage Discount or Dollar Amount: Test Both!
This is the classic question: should you show a percentage discount or a fixed dollar savings?
- A percentage discount (e.g., 50% off) is usually more impactful when the number is high. It creates a strong sense of value, especially for mid-range products.
- A fixed dollar amount (e.g., $100 off) works best for high-ticket items like furniture, appliances, or mattresses, because customers instantly see how much they’re saving.
💡 Tip: Run A/B tests with both formats to see which version brings more clicks and conversions.
2. Conditional Offers: Increase Cart Value
Conditional offers are excellent tools for boosting the average order value and encouraging multiple purchases. Here are some effective formats:
- Buy X items, get X% off
(e.g., Buy 3 items, get 20% off) - Spend X dollars, save X%
(e.g., Spend $100, save 15%) - Get free or discounted products
(e.g., Spend $150 and receive a free gift worth $40)
These offers are seen as rewards and help convert browsers into buyers.
3. Gift with Purchase: Add Perceived Value
Giving away a free gift with purchase is a simple yet powerful way to make customers feel they’re getting more for their money. The gift can be:
- An overstocked or low-selling product
- A complementary accessory
- A teaser item from a new collection
💡 This strategy works especially well online, where the gift can be automatically added to the cart.
4. Cross-Selling: Maximize Each Transaction
Cross-selling means suggesting complementary products to the one being purchased. For example:
- Shoe cleaner with footwear
- Pillowcases with a bed sheet set
- A carrying case with electronics
These suggestions can be done automatically online or communicated in-store by staff. Better yet: bundle them in a small discount offer.
5. Progressive Discounts: Create Urgency
This strategy creates a built-in countdown effect:
- Day 1: 20% off
- Day 2: 30% off
- Day 3: 40% off
It encourages shoppers to buy early for the best selection… and ensures that your inventory moves quickly.
6. Flash Sales: Drive Quick Action
Flash sales are perfect for building a sense of urgency:
- Discounts valid for 24–48 hours only
- Limited quantities
- Specific start/end times (e.g., 12PM to 5PM)
💡 Don’t forget to send a reminder email or push notification a few hours before the deal ends.
🟡 Key Takeaway – Repeat Your Message and Diversify Your Channels
Even the best discount strategy only works if it’s seen multiple times across various platforms. Whether you announce it via your website, email newsletter, or social media, make sure to repeat your offer at least 5 times so it sticks in the consumer’s mind.
💡 Use a consistent visual identity, clear message, and strong call-to-action across all platforms. Repetition and consistency are powerful tools to boost your conversion rate and maximize the impact of your promotion.
The Key Is Experimentation
There is no one-size-fits-all solution when it comes to discount strategies. Every audience reacts differently depending on the industry, product type, and time of year. The most important thing is to test different types of promotions, analyze the performance (click-through rates, conversions, average cart value), and adjust your future campaigns based on the results.
Never forget that honesty in your discounts is essential: don’t advertise “up to 70% off” if most of your products are only discounted by 30%. Otherwise, you risk disappointing your customers and damaging your brand reputation.
Need help designing an effective sales campaign with the best discount strategies?
The allsales.ca team is here to support you every step of the way – from copywriting to visuals and distribution.
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