Discounts - To Give Or Not To Give

Today, customers are not surprised anymore by a 10% discount on their purchase. On the contrary, getting a discount becomes an expectation and is taken for granted


Surf the website, google or subscribe to the newsletter and the 10% reduction is easily in the pocket. Which makes us think: is it always necessary to give a discount to make people buy? And if you decide upon giving a discount, what is the amount that pushes website visitors to the payment basket? 

Exclude specific customers from a discount, protect your margins

Customers buy for various reasons- your mother may only buy a product when she really needs it, your brother only when a desired product is on sale, while your friend might purchase only when the discount is high enough. Consider, for example, Black Friday- during that time countless people buy things they didn’t intend to buy but only give in due to the crazy cuts. Some people, on the other hand, wait until Black Friday arrives to purchase the desired product. However, not everybody participates in Black Friday Sales as they are not interested in discount, want exclusivity or are afraid that their size will be out of stock during the sales.

Which raises the question: is it necessary to send a coupon to all your customers, since some of them would buy anyway? Sending out the right amount of discount through the right channel to your discount-sensitive customers and excluding clients who would buy anyway makes you not only save on labour costs, but it also means a huge difference for your margins. At we provide self-service data-insights which help you to protect your margins and define the discount strategy that fits your company.

5 euro off with a purchase of €50 or a 10% discount?  


5 euro off when 50 is spent or a 10% discount on €50 is the same in terms of margin. The customer, on the contrary, can perceive both formulations differently, which can mean the difference between buying and not buying. Sometimes, you may have to offer a 15% discount to draw people; while other people will only be triggered when you throw a specific category in the sale. Being data-informed will guide you to the best discount strategy and helps you to protect your margins.   


What about sending a discount code wrapped up as a present?   


Nowadays mailboxes are flooded with advertisements. No wonder that discount codes get lost between all other publicities. In today’s virtual world, physical mailings occur less, so it might be a good idea to send them out again, especially when you can make your discount code stand out. That can be for example with a handwritten message or a coupon wrapped up as a present. Such mailings are more expensive of course and that is why you want to target your discount-driven customers and deliver them the right message with a personal touch. Take also into account that presenting a discount in a specific way will not always lead to the desired result. Certain customers do not buy during a discount period, they are not sensitive to sale promotions at all. It could be another efficient strategy to target those customers with a special promotion without an actual discount.

 In this way, even though your cost of promotions is high, the impact is positive, and the ROI is guaranteed. Here too, accurate data insights will guide you towards the perfect discount strategy that makes a difference.


Do you find this topic relevant for your business?
Find out how we at, help our customers decide upon the right data-informed discount strategy for their business. 


Contact Us




May 07, 2019
News invests every day in understanding your world and loves to share those findings with you.