Why Is Discounting Such an Effective Conversion Strategy?

I’ve been thinking about a thing we hate doing but which works so annoyingly well…

Discounting.

We offer discounts because we believe the shopper was looking to spend less, and by applying the discount, we’re now within their acceptable price range.

And because adding a discount works, we assume this is what is happening.

But what if it isn’t?

I think a big reason discounts work is that, in their absence, there is no point of reference.

The shopper is thinking, “Is $117.99 a good deal for these shoes?” and their mental operating system is stuck in a loop because it’s very hard to know the answer.

But introduce a discount (it was $117.99 and is now $88.49), and it’s easier to see value.

Yes, adding a discount worked, but it only worked because the shopper now has a contrast for comparison.

What if we could deliver this contrast without a discount?

I think we can. We just need to think deeply about better articulating our value proposition.

Maybe we can talk about the build quality.

Or how long it took us to get the design just right.

Or how we could have gone with a slightly cheaper insole but instead decided to go all out, knowing our discerning shoppers would notice and appreciate the difference.

Are You a Marketer?

I suspect you might be because only a marketer would be interested in understanding a topic like this.

Well, I have a surprise for you.

Revealing It All

In our marketing lab 🥼, experimenting 🧪 for the last 15 years, we’ve discovered that one reason marketing campaigns fail is because they try to do too much.

Site visitors fall into 3 groups:

— Ready to buy
— Will never buy
— Interested, but need a little more convincing

The 3^rd group has the biggest revenue potential.

Evidence Our Formula Works

This strategy mentioned above isn’t a theoretical framework. It’s the base formula for all our conversion work for clients. This marketing framework can be used to boost sales for sports products. To sell skincare products. Pet products. Consumer electronics. Athletic gear. Back pain solutions. Food items. High-end cooking tools. Plant growth soil.

Does the sales pitch always need to be shown as a popup? Nope.

It can also convert cold Facebook ad traffic, improve mobile conversion rates, generate calls, optimize your most important landing page, etc.

It can even be used to improve your overall conversion rates.

Converting Interested, but Need a Little More Convincing Group (With Examples)

Explained in this👇🏼 Nine Truths article: