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Seven ways that offering discounts can boost your bottom line

Its been proven time and time again that brands which choose to offer discounts to both their existing customers and potential customers are likely to be doing better than the competition. 

If you’re undecided as to whether or not to offer discounts to your customers, heres just a few reasons as to why you should.

(1) Offering discounts can help a brand tap into savvy consumers

There is a large audience around the UK of people who are in tune with discounts, daily deals, flash sales and quick product wins. 

These consumers (and there’s quite an army of them in the UK!) can drive significant volumes for anyone willing to supply discounts to them. These savvy shoppers are also the ones who tend to bulk buy food, drink and household necessities that they use on a regular basis and purchase in order to save money in the long run.

(2) Demand for a branded discount often outweighs the demand for the brand itself

If you and your competitor are offering a similar product, but theyre honouring a discount of some sort, shoppers may be more likely to go with your competitor in order to save themselves a little bit of money. This then allows your competitor to convert them into their loyal customer and not yours.

(3) Average order values can be stretched by encouraging a larger spend

By offering a discount to customers when they spend a certain amount, customers are more likely to increase the total spend to either purchase an additional product at a bargain cost, or in order for the discount itself to kick in. 

Upselling is great for a companys bottom line, encouraging customers to part with more money than they initially were planning to spend.

(4) It’s a great way to shift leftover and “must-go” stock

If you’re looking to clear stock in order to bring in new stock, if it’s coming up to its use-by date or if it’s a product that you may be struggling to sell, this discount is a sneaky little saver. 

Discounts that work along these lines encourage customers to make a purchase or to bulk buy and potentially sell on themselves. Either way, the stock is off your shelves and the money is in your bank.

(5) Boost new customer acquisition and user engagement

If you’re a new brand or youve got a new product, discounts are a great way to entice customers away from their usual purchases over to you. 

Something as simple as 10 per cent off can tip them over the edge, enticing the decision to purchase your new offering, opening avenues for you to entice with them other products, services and discounts in the future. 

(6) It can encourage repeat purchases e.g. 20 per cent off second shop, 10 per cent off third shop 

Many companies look for repeat purchase deals, such as supermarkets and coffee shops, where customers get a stamp, token or point to show that they have indeed made a purchase. Your company can then, in turn, reward when theyve made a purchase a set amount of times. An example of this is would be to offer your customers 10 per cent off their second shop, an added freebie with their third shop and so on.

(7) More eyes on your brand

Not only does offering discounts generate additional sales, they have long-term benefits too, such as increasing the number of potential customers looking at and watching your brand. 

Your initial or current discount may be a good one, but that doesnt automatically mean it’s going to be of interest to everyone. Over time, however, you should look to target a varied number of customer markets in order to convert them from watching your brand into shopping with your brand.

Chris Johnson is head of operations at


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