{"id":93715,"date":"2020-10-26T19:15:24","date_gmt":"2020-10-27T02:15:24","guid":{"rendered":"https:\/\/thegood.com\/?post_type=insights&#038;p=93715"},"modified":"2023-10-03T03:12:40","modified_gmt":"2023-10-03T10:12:40","slug":"discounting-for-ecommerce","status":"publish","type":"insights","link":"https:\/\/thegood.com\/insights\/discounting-for-ecommerce\/","title":{"rendered":"Why Discounting Is Bad For Your Brand (And What To Do Instead)"},"content":{"rendered":"\n<p><strong>Special Note:<\/strong> <em>This article was inspired by an episode of our podcast, Drive &amp; Convert. We go into much more detail on discounting here than we did on the show, but you might enjoy listening to the original conversation and subscribing to receive future episodes.<\/em><\/p>\n\n\n\n<iframe width=\"100%\" height=\"180\" frameborder=\"no\" scrolling=\"no\" seamless=\"\" src=\"https:\/\/share.transistor.fm\/e\/4b9cbeda\"><\/iframe>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Discounting seems like a no-brainer way to increase site sales. You certainly don\u2019t have to go far to find this tactic.&nbsp;<\/p>\n\n\n\n<p>The prevalence of discounting implies <em>this is an effective way to convert prospects into customers<\/em>.&nbsp;&nbsp;<\/p>\n\n\n\n<p>But here\u2019s the truth:&nbsp;<\/p>\n\n\n\n<p><strong>While discounting feels like a good way to improve your conversion rate and increase sales, it\u2019s actually draining your margins and tarnishing your brand.<\/strong><\/p>\n\n\n\n<p>The fact is, discounting is all over ecommerce because it\u2019s the <em>easy button <\/em>\u2014 not because it\u2019s the <em>best way<\/em> to convert customers.&nbsp;<\/p>\n\n\n\n<p>Think of discounts as reaching for fast food every time you\u2019re hungry. Over <a href=\"https:\/\/www.cdc.gov\/nchs\/products\/databriefs\/db322.htm\" target=\"_blank\" rel=\"noreferrer noopener\">35%<\/a> of Americans (roughly 85 million) do this on any given day.&nbsp;<\/p>\n\n\n\n<p>Yet, you don\u2019t have to be a nutrition expert to know regular fast food is bad for you. Sure, it\u2019s convenient, effective (it curbs your hunger), and tastes good. But all this is deceiving; while you\u2019re checking the box for short-term needs, you\u2019re damaging your long term health. Worse, if fast food becomes a habit, that habit will put you in a bad spot down the road.&nbsp;<\/p>\n\n\n\n<p>Discounts are the large fries equivalent for your business.&nbsp;<\/p>\n\n\n\n<p>They are&#8230;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Convenient<\/strong>: You can have them up and running in hours, if not minutes.<\/li><li><strong>Effective<\/strong>: They often drive a short-term boost in conversion rate and sales.<\/li><li><strong>Pleasurable: <\/strong>Who doesn\u2019t enjoy seeing a spike on their revenue chart?<\/li><\/ul>\n\n\n\n<p>But once you start on them, they\u2019re a hard habit to break. And they\u2019re seriously damaging to your business&#8217;s long term health.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-ecommerce-brands-should-think-about-discounts\">How ecommerce brands SHOULD think about discounts&nbsp;<\/h2>\n\n\n\n<p>First, a quick clarification. We\u2019re not saying, \u201cnever have a sale again.\u201d Rather, we\u2019re saying it\u2019s better to incentivize purchases by <em>increasing the value<\/em> your customer receives versus <em>reducing the cost<\/em> of your goods.<\/p>\n\n\n\n<p>Here\u2019s what I mean:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-leading-with-price-vs-value-the-difference-between-discount-pricing-and-promotions\">Leading with price vs. value: the difference between discount pricing and promotions<\/h3>\n\n\n\n<p>The difference between discounts and promotions is more than semantics:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Discounting<\/strong> refers to direct dollar discounts or taking a percentage off your price. Discounts encourage the customer to look at price as the main (perhaps even the <em>only<\/em>) influence on their decision. Think a \u201c10% off your first order when you sign up here\u201d popup, such as the one Artifact Uprising employs:&nbsp;&nbsp;&nbsp;<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"974\" height=\"780\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-84.png\" alt=\"Discounting percent website popup example\" class=\"wp-image-94631\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-84.png 974w, https:\/\/thegood.com\/wp-content\/uploads\/image-84-300x240.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-84-768x615.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-84-610x489.png 610w\" sizes=\"(max-width: 974px) 100vw, 974px\" \/><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Promotions<\/strong> are anything other than slashing the price. Promotions offer additional value to the customers \u2014 something they wouldn\u2019t otherwise receive. Done well, this incentive can be more compelling than saving a few dollars. Think volume and loyalty-based perks that gift \u201csomething extra.\u201d For example, the way Supply offers a free year of blades with a full-price purchase of their razor&#8230;plus free shipping and returns (talk about building trust and busting objections!):<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"595\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-85-1024x595.png\" alt=\"promotion example popup\" class=\"wp-image-94632\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-85-1024x595.png 1024w, https:\/\/thegood.com\/wp-content\/uploads\/image-85-300x174.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-85-768x446.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-85-610x355.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-85.png 1106w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Both promotions and discounts have a similar, two-fold goal: prompt the customer to take action and create urgency that motivates customers to act <em>right now<\/em>.&nbsp;<\/p>\n\n\n\n<p>But discounting leads with <strong>price and scoring a deal,<\/strong> whereas promotions (done well) lead with the<strong> value of your product<\/strong>. There\u2019s a big psychological difference for your customers, which means there\u2019s a big difference for your brand and revenue, too.&nbsp;<\/p>\n\n\n\n<p>We\u2019ll get into promotion options later on. For now, let\u2019s look at the long term effects discounts have on ecommerce brands.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-stackable-columns stk-block-columns stk-block stk-c842da9 reusable-block-2-column good-question-block\" data-block-id=\"c842da9\"><style>.stk-c842da9{max-width:1500px !important;margin-top:30px !important;margin-bottom:30px !important}.stk-c842da9-column{max-width:941px !important}@media screen and (max-width:767px){.stk-c842da9{--stk-col-order-1:2 !important;--stk-col-order-2:1 !important}}<\/style><div class=\"stk-row stk-inner-blocks stk-block-content stk-content-align stk-c842da9-column\">\n<div class=\"wp-block-stackable-column stk-block-column stk-column stk-block stk-8993c44 horizontal-form-container\" data-v=\"4\" data-block-id=\"8993c44\"><style>.stk-8993c44-container{margin-top:0px !important;margin-right:0px !important;margin-bottom:0px !important;margin-left:0px !important;background-color:#c3ddf0 !important;border-top-left-radius:12px !important;border-top-right-radius:12px !important;border-bottom-right-radius:12px !important;border-bottom-left-radius:12px !important;overflow:hidden !important;max-width:701px !important;padding-top:40px !important;padding-right:35px !important;padding-bottom:40px !important;padding-left:35px !important}.stk-8993c44{margin-top:0px !important}.stk-8993c44-container:before{background-color:#c3ddf0 !important}@media screen and (max-width:1023px){.stk-8993c44-container{padding-bottom:60px !important}}@media screen and (max-width:767px){.stk-8993c44-container{padding-bottom:60px !important}}<\/style><style class=\"stk-custom-css\">.stk-8993c44 figure{margin:0 !important}<\/style><div class=\"stk-column-wrapper stk-block-column__content stk-container stk-8993c44-container stk-hover-parent\"><div class=\"stk-block-content stk-inner-blocks stk-8993c44-inner-blocks\">\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-791f1b3\" id=\"span-style-color-0277-c-0-class-stk-highlight-enjoying-this-article-span\" data-block-id=\"791f1b3\"><style>.stk-791f1b3{margin-bottom:12px !important}.stk-791f1b3 .stk-block-heading__text{font-size:36px !important;color:#ffffff !important}@media screen and (max-width:1023px){.stk-791f1b3 .stk-block-heading__text{font-size:36px !important}}@media screen and (max-width:767px){.stk-791f1b3 .stk-block-heading__text{font-size:24px !important}}<\/style><h3 class=\"stk-block-heading__text has-text-color has-text-align-center\"><span style=\"color: #0277c0;\" class=\"stk-highlight\">Enjoying this article?<\/span><\/h3><\/div>\n\n\n\n<div class=\"wp-block-stackable-text stk-block-text stk-block stk-30f99ae\" data-block-id=\"30f99ae\"><style>.stk-30f99ae{margin-bottom:20px !important}.stk-30f99ae .stk-block-text__text{color:#ffffff !important}<\/style><p class=\"stk-block-text__text has-text-color has-text-align-center\"><span style=\"color: #000000;\" class=\"stk-highlight\">Subscribe to our newsletter, Good Question, to get insights like this sent straight to your inbox every week.<\/span><\/p><\/div>\n\n\n\n\t\t\t\t\t\t<script>\n\t\t\t\t\t\t\twindow.hsFormsOnReady = window.hsFormsOnReady || [];\n\t\t\t\t\t\t\twindow.hsFormsOnReady.push(()=>{\n\t\t\t\t\t\t\t\thbspt.forms.create({\n\t\t\t\t\t\t\t\t\tportalId: 5834619,\n\t\t\t\t\t\t\t\t\tformId: \"64ede74e-e88f-44c7-996f-78859799755a\",\n\t\t\t\t\t\t\t\t\ttarget: \"#hbspt-form-1768316792000-3677512022\",\n\t\t\t\t\t\t\t\t\tregion: \"na2\",\n\t\t\t\t\t\t\t\t\tcssRequired: \".submitted-message { overflow: auto; } .hs-form-88422a7d-0355-4f27-b674-4b9fcc71560c, .hs-form-ac90f61a-a614-4bcd-b57a-18cd0e91ceff { color: #fff }\",\n\t\t\t\t\t\t\t})});\n\t\t\t\t\t\t<\/script>\n\t\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1768316792000-3677512022\"><\/div>\n<\/div><\/div><\/div>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-six-painful-long-term-effects-of-discounting-your-products\">Six painful, long term effects of discounting your products&nbsp;<\/h2>\n\n\n\n<p>Note that none of the effects below are short-term. These aren\u2019t surface-level pains. They\u2019re not like the headache you get from staring at a computer screen all day \u2014 they can\u2019t be fixed with an Advil, glass of wine, and good book.&nbsp;<\/p>\n\n\n\n<p>Rather, they\u2019re the latent pains. They start off imperceptible, but they grow into something that devastates your brand. They\u2019re like the herniated disk (think headache x100) you get from years of poor posture at your desk \u2014 insidious, painful, and expensive.&nbsp;<\/p>\n\n\n\n<p>They\u2019re also widespread: they impact your customers, reputation, and your financial health.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-financial-effects\"><strong>Financial Effects<\/strong><\/h3>\n\n\n\n<p><strong>1.<\/strong> <strong>Draining your margins&nbsp;<\/strong><\/p>\n\n\n\n<p>Discounts hack into your margins and reduce your total revenue. You bring in less profit compared to other incentives such as a free gift with purchase or free shipping over a certain threshold.&nbsp;<\/p>\n\n\n\n<p>Need proof?<\/p>\n\n\n\n<p>Profitwell\u2019s Patrick Campbell dug into data from 4,200 subscription ecommerce brands and found higher discounts at purchase <a href=\"https:\/\/twitter.com\/Patticus\/status\/1317113645701206016?s=20\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">correlate with<\/a>:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Lower customer lifetime value<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"595\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-86-1024x595.png\" alt=\"graph that shows discounting leads to lower lifetime value\" class=\"wp-image-94633\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-86-1024x595.png 1024w, https:\/\/thegood.com\/wp-content\/uploads\/image-86-300x174.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-86-768x446.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-86-1536x892.png 1536w, https:\/\/thegood.com\/wp-content\/uploads\/image-86-610x354.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-86.png 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li>Lower satisfaction scores<\/li><li>Higher revenue churn<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"758\" height=\"463\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-87.png\" alt=\"graph shows that discounting correlates with higher revenue churn\" class=\"wp-image-94634\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-87.png 758w, https:\/\/thegood.com\/wp-content\/uploads\/image-87-300x183.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-87-610x373.png 610w\" sizes=\"(max-width: 758px) 100vw, 758px\" \/><\/figure><\/div>\n\n\n\n<p>Whereas promotions such as a free gift with purchase correlated with <em>higher<\/em> lifetime value compared to percentage discounts.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-customer-effects\"><strong>Customer Effects<\/strong><\/h3>\n\n\n\n<p><strong>2. Training customers to expect (and wait for) steep discounts&nbsp;<\/strong><\/p>\n\n\n\n<p>Kohl\u2019s <em>always<\/em> has a sale going on, and it\u2019s usually between 10 and 40% off. But over time, these frequent discounts desensitize customers to the thrill of a deal.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"543\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-88-1024x543.png\" alt=\"levi discounting example\" class=\"wp-image-94635\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-88-1024x543.png 1024w, https:\/\/thegood.com\/wp-content\/uploads\/image-88-300x159.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-88-768x407.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-88-610x323.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-88.png 1332w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Customers begin ignoring the 10% and 20% off sales and hold out for 40% off sales. This means when you run frequent discounts, you actually work <em>against<\/em> the very thing you\u2019re trying to do. Instead of prompting action and urgency, you train customers to sit back and wait.&nbsp;<\/p>\n\n\n\n<p>True, discounts work the first time because folks don\u2019t want to miss the deal. But when you get on the \u201chamster wheel\u201d of discounts, you start creating fake urgency. When there\u2019s always another deal coming right behind the current deal, the urgency evaporates.&nbsp;<\/p>\n\n\n\n<p>Think about it: when was the last time you paid full price for an item from Michaels or Bed Bath and Beyond?&nbsp;<\/p>\n\n\n\n<p>Sometimes, this fake urgency comes in a more malicious form \u2014 think countdown timers for sales\/offers that don&#8217;t actually disappear if you miss the window. For example, when we reviewed Native Deodorant (<a href=\"https:\/\/open.spotify.com\/episode\/09csOYI1Id7bcNZ3QCv1QS?si=GeQURsBjQ-mJ2id4PAwUUw\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">check out the podcast episode<\/a>), we discovered a countdown timer on their site. Only, when you waited it out, you could still sign up for the giveaway.&nbsp;<\/p>\n\n\n\n<p>That kind of fake scarcity\/urgency is gross, erodes trust, and damages your reputation.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"890\" height=\"602\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-89.png\" alt=\"Native deodorant email popup \" class=\"wp-image-94636\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-89.png 890w, https:\/\/thegood.com\/wp-content\/uploads\/image-89-300x203.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-89-768x519.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-89-610x413.png 610w\" sizes=\"(max-width: 890px) 100vw, 890px\" \/><\/figure><\/div>\n\n\n\n<p>Another fake urgency tactic shows up on checkout screens. Think an &#8220;only 3 items left in stock!&#8221; or a &#8220;this price is only good for 15 minutes&#8221; memo with a countdown timer.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"831\" height=\"459\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-90.png\" alt=\"fake urgency with limited quantity of product\" class=\"wp-image-94637\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-90.png 831w, https:\/\/thegood.com\/wp-content\/uploads\/image-90-300x166.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-90-768x424.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-90-610x337.png 610w\" sizes=\"(max-width: 831px) 100vw, 831px\" \/><\/figure><\/div>\n\n\n\n<p>If that scarcity is<em> true,<\/em> it can be crazy effective. But if it\u2019s false, it&#8217;s gross and erodes customer trust. There are <a href=\"https:\/\/thegood.com\/insights\/create-urgency-increase-conversions\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">much healthier ways<\/a> to drive genuine urgency.&nbsp;<\/p>\n\n\n\n<p><strong>3. Attracting less-than-ideal customers<\/strong><\/p>\n\n\n\n<p>Brands attract 7 types of customers:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Just Looking&nbsp;<\/li><li>Bargain Hunters<\/li><li>Buyers&nbsp;<\/li><li>Researchers&nbsp;<\/li><li>New Customers<\/li><li>Dissatisfied Customers<\/li><li>The Loyal Crowd&nbsp;<\/li><\/ul>\n\n\n\n<p>While it\u2019s worth looking at how you can convert<em> all<\/em> types of customers, discounts disproportionately attract the bargain hunter crowd \u2014 the \u201cno discount, no purchase\u201d customers who only buy when there\u2019s a substantial sale.<\/p>\n\n\n\n<p>When you consistently use discounts to incentivize purchases, you make \u201cBargain Hunters\u201d&nbsp; a larger portion of your customer base. These aren\u2019t <em>bad<\/em> customers per se, but they\u2019re less profitable than the \u201cThe Loyal Crowd.\u201d So, the more you discount and attract \u201cBargain Hunters,\u201d the more you cut into revenue.&nbsp;<\/p>\n\n\n\n<p>When you train customers to expect discounts and disproportionately attract coupon-clippers, you fast-track your transition to a deal buster brand. You condition customers to think, \u201cthis product really isn\u2019t worth what they usually charge.\u201d And that\u2019s a hard perception to reverse.&nbsp;<\/p>\n\n\n\n<p><strong>4. Lowering customers\u2019 perception of quality<\/strong><\/p>\n\n\n\n<p>As Jon noted on a recent episode of our Drive &amp; Convert podcast, once you&#8217;re a discount brand in the eyes of the consumer, you\u2019re forever going to be a discount brand. It&#8217;s just not something you can easily recover from.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-other-long-term-effects\"><strong>Other Long-term Effects<\/strong><\/h3>\n\n\n\n<p><strong>5. Falling into a race to the bottom<\/strong><\/p>\n\n\n\n<p>When you compete on price, you enter your brand in a race to the bottom. Because price cuts are the easiest thing for <em>you<\/em> to implement, they are also the easiest thing for your competitors to match. You do 10%, competitors do 15%; you do 20%, they do 25%.&nbsp;<\/p>\n\n\n\n<p>While you and your competitor might both win a pricing battle here and there, you\u2019ll both lose the discount war.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Keep in mind:&nbsp;<\/p>\n\n\n\n<p>Other brands are discounting, but that doesn\u2019t mean you have to copy them. You\u2019ve no idea how that tactic is working out for them behind the scenes. They may have higher top-line revenue, but there\u2019s a good chance their profitability isn\u2019t as healthy as yours. And the company with a better profit margin almost always wins.&nbsp;<\/p>\n\n\n\n<p><strong>6. Putting a bucket under a leaky pipe&nbsp;<\/strong><\/p>\n\n\n\n<p>Discounts <em>do<\/em> provide a temporary lift in revenue, which is why brands reach for them. But they\u2019re a short term fix.<\/p>\n\n\n\n<p>If you\u2019re losing customers because of poor traffic quality, bad copywriting, confusing site structure, or a lack of social proof, a discount might help you catch some of those dripping dollars. But discounting will never address the root cause \u2014 a bucket can\u2019t plug holes in the sales funnel.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-discounts-aren-t-always-bad-here-are-two-scenarios-where-we-recommend-using-them\">Discounts aren\u2019t ALWAYS bad. Here are two scenarios where we recommend using them<\/h3>\n\n\n\n<p>As a general rule, discounts are harmful to your brand. But there <em>are<\/em> two exceptions where it makes sense.<\/p>\n\n\n\n<p><strong>1. Securing a high lifetime value customer with a breakeven sale<\/strong><\/p>\n\n\n\n<p>If you discount an initial sale to secure a high lifetime value customer at a breakeven price, that\u2019s a win. This customer will more than make up for it down the road.&nbsp;<\/p>\n\n\n\n<p>For example, let&#8217;s say you sell a product that has frequent repeat purchasers. If your customers stick around for at least a few months, then, on average, you can afford to break even or take a slight loss on the initial sale. Over time, you\u2019ll come out way ahead.&nbsp;<\/p>\n\n\n\n<p>Look at Quip:<\/p>\n\n\n\n<p>Quip sells electric toothbrushes and flossers. They\u2019re confident in their product and they know their customer lifetime value, so they include your first replacement brush for free. This gets new customers into a high-value replenishment plan quickly.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"906\" height=\"906\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-91.png\" alt=\"discounting with a high value replenishment plan is a good idea\" class=\"wp-image-94638\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-91.png 906w, https:\/\/thegood.com\/wp-content\/uploads\/image-91-300x300.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-91-150x150.png 150w, https:\/\/thegood.com\/wp-content\/uploads\/image-91-768x768.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-91-610x610.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-91-24x24.png 24w, https:\/\/thegood.com\/wp-content\/uploads\/image-91-48x48.png 48w, https:\/\/thegood.com\/wp-content\/uploads\/image-91-96x96.png 96w\" sizes=\"(max-width: 906px) 100vw, 906px\" \/><\/figure><\/div>\n\n\n\n<p>Quip takes the financial loss on the initial replacement just fine because most customers continue using their product. Over the long haul, the automatic replenishment plan generates above and beyond the value needed to cover the initial loss.<\/p>\n\n\n\n<p><strong>2. A true, infrequent offer once or twice a year<\/strong><\/p>\n\n\n\n<p>The other time discounting your prices is acceptable is when you run a true, infrequent (less than 3x per year) offer.&nbsp;<\/p>\n\n\n\n<p>For example, <a href=\"https:\/\/www.bareperformancenutrition.com\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">Bare Performance Nutrition<\/a> only runs two sales a year. The founder, Nick Bare, <a href=\"https:\/\/www.starterstory.com\/stories\/how-i-grinded-for-years-to-build-6m-year-bare-performance-nutrition\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">explains<\/a>, &#8220;We pride ourselves on not being a huge discount brand and only run two sales each year \u2014&nbsp; Black Friday and 4th of July (each being 20% off site-wide).&#8221;&nbsp; Fun fact: Bare is a veteran, so the July sale is tied directly to his brand\u2019s origins.&nbsp;<\/p>\n\n\n\n<p>In scenarios like this, you\u2019re introducing <em>genuine urgency<\/em> at a frequency that won\u2019t train your customers to wait for a deal. And that\u2019s why it works.<\/p>\n\n\n\n<p>Caveat: If you go this route, factor in your <a href=\"https:\/\/thegood.com\/insights\/understand-meet-customer-expectations\/\">customer\u2019s expectations<\/a> when you select your 1-2 yearly offers. Depending on your product, customers may expect discounts on Black Friday, Mother\u2019s\/Father\u2019s Day, Valentine\u2019s Day, or other notable times of the year. In these isolated scenarios, <em>not<\/em> having a discount on expected days can make it hard to compete or hit your goals.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-real-world-example-using-promotions-instead-of-price-discounts\">Real world example: using promotions instead of price discounts<\/h2>\n\n\n\n<p>We\u2019ve seen promotions work firsthand. Recently, one of our Consumer Packaged Goods (CPG) clients launched a limited edition product with a seasonal flavor and a reduced price.<\/p>\n\n\n\n<p>So, this brand paired a reduced cost (not a discounted) item with a genuine urgency play (limited seasonal release). It was a smart move.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s what happened:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Average order value<\/strong> decreased slightly<\/li><li><strong># of transitions<\/strong> went up 5%<\/li><li><strong>Average # of products<\/strong> <strong>per transaction<\/strong> increased<\/li><li><strong>Gross revenue<\/strong> increased by 9%<\/li><li><strong>Conversation rate <\/strong>increased by 0.5%<\/li><\/ul>\n\n\n\n<p>Overall, between 10 and 15% of total revenue for the quarter came from this limited release product. Other similar experiments you could run include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A bundle that includes a seasonal item at a reduced price&nbsp;<\/li><li>A reduced price on a seasonal item when the cart value exceeds a certain amount<\/li><li>A \u201cfree seasonal item with purchase\u201d offer when the customer hits a minimum cart value or adds specific products to their cart&nbsp;<\/li><\/ul>\n\n\n\n<p>So, how do you move off discount pricing and start implementing healthier promotions like these?&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-drop-the-scissors-and-move-away-from-price-cuts\">How to drop the scissors and move away from price cuts<\/h2>\n\n\n\n<p>When you\u2019re used to running discounts, stepping away from them isn\u2019t easy. Especially when it feels like they\u2019re working, and especially when you\u2019re reporting decent numbers up the chain. From that perspective, nixing discounts feels risky \u2014 even when you know it\u2019s a smart long term play.<\/p>\n\n\n\n<p>We get that, and we\u2019re not recommending you cut your discounts cold turkey.&nbsp;<\/p>\n\n\n\n<p>Here are a few things you can do right away to take a healthier approach to discounts in the near-term, while also taking steps to wean yourself off of discounting over the long-term.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-to-do-right-away-improve-your-existing-discounts\">What to do right away: improve your existing discounts<\/h3>\n\n\n\n<p><strong>1. Have one-time use discount codes<\/strong><\/p>\n\n\n\n<p>One time use discount codes help keep your brand off sites that aggregate coupons, like the one in the image below.&nbsp;&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"637\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-92-1024x637.png\" alt=\"Retail me not aggregates coupons of different brands\" class=\"wp-image-94639\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-92-1024x637.png 1024w, https:\/\/thegood.com\/wp-content\/uploads\/image-92-300x187.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-92-768x478.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-92-610x380.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-92.png 1210w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Instead of having a universal discount code such as \u201cFALL20,\u201d use an ID that\u2019s unique to each customer and only works once.&nbsp;<\/p>\n\n\n\n<p><strong>2. Use link-based discounts<\/strong><\/p>\n\n\n\n<p>If you\u2019re emailing out discounts, you can ditch the promo code altogether and opt for a link-based coupon. In this scenario, the customer doesn\u2019t need to copy and paste a promo code. Rather, you deliver them (via the email link) to a checkout page with the discount already applied in cart.&nbsp;<\/p>\n\n\n\n<p><strong>3. Hide the coupon field during checkout<\/strong><\/p>\n\n\n\n<p>Many brands show an open coupon field during the checkout process. But our A\/B testing shows that, as soon as your customer sees this empty field, they want to fill it in. The implication is the customer isn\u2019t getting the best deal unless they find that code.&nbsp;<\/p>\n\n\n\n<p>Once I see a box like the one below, I\u2019ve left a checkout page plenty of times to hunt down a code:&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"737\" height=\"1024\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-93-737x1024.png\" alt=\"If you have a discounting box in your checkout, customers often go offsite to use it\" class=\"wp-image-94640\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-93-737x1024.png 737w, https:\/\/thegood.com\/wp-content\/uploads\/image-93-216x300.png 216w, https:\/\/thegood.com\/wp-content\/uploads\/image-93-768x1066.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-93-610x847.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-93.png 808w\" sizes=\"(max-width: 737px) 100vw, 737px\" \/><\/figure><\/div>\n\n\n\n<p>To ward off this behavior (and associated cart abandonment), hide this field by default. You could remove it altogether if you have no active discounts. Or you could display text that says, \u201cPromo code\u201d or \u201cReferral code\u201d like in the Sundays for Dogs example below. In comparison to an open field, this text only expands into a field when a customer clicks it.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"609\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-94-1024x609.png\" alt=\"Sunday for Dogs has a collapsable discounting field which is a good strategy\" class=\"wp-image-94642\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-94-1024x609.png 1024w, https:\/\/thegood.com\/wp-content\/uploads\/image-94-300x178.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-94-768x456.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-94-1536x913.png 1536w, https:\/\/thegood.com\/wp-content\/uploads\/image-94-610x363.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-94.png 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-play-the-long-game-move-toward-value-based-promotions\">How to play the long game: move toward value-based promotions<\/h3>\n\n\n\n<p>To achieve steady, long term growth, you\u2019ll need to move off price-centered discounts and onto value-centered promotions. Here are two ways to start doing that.&nbsp;<\/p>\n\n\n\n<p><strong>Step 1: Review your promotions calendar<\/strong><\/p>\n\n\n\n<p>Pull out your promotions calendar and look at the next 3-12 months (whatever you have planned). Ask yourself what discounts you have scheduled and which ones you can swap out in favor of value-based promotions. Mark those.&nbsp;<\/p>\n\n\n\n<p><strong>Step 2: Replace a bad habit with a better one.&nbsp;<\/strong><\/p>\n\n\n\n<p>The best way to cut a bad habit is to replace it with a better one. As habit expert James Clear <a href=\"https:\/\/jamesclear.com\/how-to-break-a-bad-habit\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">pointed out<\/a>, \u201cbad habits address certain needs in your life. And for that reason, it\u2019s better to replace your bad habits with a healthier behavior that addresses that same need.\u201d Otherwise, you\u2019re poised to fall right back where you started. (Think fasting from Hulu only to binge on Netflix.)&nbsp;<\/p>\n\n\n\n<p>So, here are five promotions you can use instead of discounts to prompt action and create healthy urgency:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Free gift with purchase:<\/strong> Incentivize customers to make an initial purchase by offering them a complimentary gift, the way Thrive Market does in their new customer flow:&nbsp;<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"563\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-95-1024x563.png\" alt=\"Free gift with purchase is a good incentive\" class=\"wp-image-94643\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-95-1024x563.png 1024w, https:\/\/thegood.com\/wp-content\/uploads\/image-95-300x165.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-95-768x422.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-95-1536x845.png 1536w, https:\/\/thegood.com\/wp-content\/uploads\/image-95-610x336.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-95.png 1600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>BOGO: <\/strong>Clear out inventory with a \u201cbuy one, get one\u201d offer. You could do <em>buy one, get one half off<\/em> or <em>buy one, get one free<\/em>.&nbsp;<\/li><li><strong>Free shipping: <\/strong>There\u2019s a reason this is a key perk of the Amazon Prime program. And while it\u2019s become a bit of an expectation thanks to Amazon, it\u2019s still a compelling incentive \u2014 especially on bulky items, like furniture and mattresses, where shipping is usually an arm and a leg. Variations like free expedited shipping (e.g. 2-day over 5-day) or free shipping above a certain cart value (to protect your margins) are also effective.<\/li><\/ul>\n\n\n\n<p>One reason this works is consumers don\u2019t like surprises. In 2020, a whopping <a href=\"https:\/\/baymard.com\/lists\/cart-abandonment-rate\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">50%<\/a> of shoppers cite \u201cextra costs too high\u201d (e.g. shipping) as the reason they abandon their cart. Offer free shipping the right way, and you\u2019ll see higher conversions.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"615\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-96-1024x615.png\" alt=\"Free shipping is a great way to incentive shoppers\" class=\"wp-image-94644\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-96-1024x615.png 1024w, https:\/\/thegood.com\/wp-content\/uploads\/image-96-300x180.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-96-768x461.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-96-610x366.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-96.png 1413w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Free returns: <\/strong>If customers are apprehensive about purchasing certain items, free returns can eliminate the fear of \u201cbut what if it doesn\u2019t work out?\u201d While this may increase your return rate, it\u2019ll likely increase customer loyalty as well. Mattress brand Tuft and Needle pairs their free returns with a 100-night trial to persuade customers it\u2019s no big deal if the mattress they choose doesn\u2019t lull them to sleep:<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1020\" height=\"416\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-97.png\" alt=\"Free returns example\" class=\"wp-image-94645\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-97.png 1020w, https:\/\/thegood.com\/wp-content\/uploads\/image-97-300x122.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-97-768x313.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-97-610x249.png 610w\" sizes=\"(max-width: 1020px) 100vw, 1020px\" \/><\/figure><\/div>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Loyalty programs:<\/strong> According to a Wirecard survey, <a href=\"https:\/\/nmgprod.s3.amazonaws.com\/media\/files\/97\/e3\/97e3466268a5f6a39748b0acf861188d\/asset_file.pdf\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">92% of consumers<\/a> are swayed by rewards some or all of the time. So, reward loyal customers with a set of appealing perks that encourage repeat purchases. For example, how Mack Weldon offers tiered loyalty rewards. Their CEO, Brian Berger, <a href=\"https:\/\/www.cnbc.com\/2020\/10\/13\/online-retail-start-ups-vie-for-shoppers-attention-on-amazon-prime-day.html\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">explained to CNBC<\/a>, \u201cWe have a permanent loyalty program. &#8230; And that gets us out of the cycle of having to think about promotions and retraining customers in a way we wouldn\u2019t want them to behave.\u201d<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"1021\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/image-98-1024x1021.png\" alt=\"Loyalty program example from Weldon Blue\" class=\"wp-image-94646\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/image-98-1024x1021.png 1024w, https:\/\/thegood.com\/wp-content\/uploads\/image-98-300x300.png 300w, https:\/\/thegood.com\/wp-content\/uploads\/image-98-150x150.png 150w, https:\/\/thegood.com\/wp-content\/uploads\/image-98-768x766.png 768w, https:\/\/thegood.com\/wp-content\/uploads\/image-98-610x608.png 610w, https:\/\/thegood.com\/wp-content\/uploads\/image-98-24x24.png 24w, https:\/\/thegood.com\/wp-content\/uploads\/image-98-48x48.png 48w, https:\/\/thegood.com\/wp-content\/uploads\/image-98-96x96.png 96w, https:\/\/thegood.com\/wp-content\/uploads\/image-98.png 1038w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<p>Keep in mind these five options aren\u2019t even close to an exhaustive list. For more alternatives, such as product bundling and bulk promotions, check out these other resources from The Good:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/thegood.com\/insights\/essential-ecommerce-promotion-guide\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">78 tactics you can utilize to run winning sales promotions<\/a><\/li><li><a href=\"https:\/\/thegood.com\/insights\/drive-ecommerce-sales-without-discounting\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">10 tactics to drive ecommerce sales without discounting<\/a><\/li><li>Top 7 ways to increase ecommerce sales (without discounting)&nbsp;<\/li><li>How to form great limited time offers<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-you-don-t-have-to-discount-prices-to-improve-your-conversion-rates\">You don\u2019t have to discount prices to improve your conversion rates&nbsp;<\/h2>\n\n\n\n<p>Discounting isn&#8217;t the gold standard of ecommerce. It may seem that way because \u201ceveryone else is doing it.\u201d But remember, that\u2019s not because it\u2019s a great business practice \u2014 that\u2019s because it\u2019s easy.&nbsp;<\/p>\n\n\n\n<p>Don\u2019t be lazy; get creative with your incentives and lead with value, not price. You\u2019ll improve your margins, strengthen your brand, and best competitors&#8230;all without slashing your prices.&nbsp;<\/p>\n\n\n\n<p>Want more insights like this one? <a href=\"https:\/\/thegood.com\/sign-up\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"ek-link\">Subscribe to our email list<\/a>. Every Tuesday, you\u2019ll join thousands of ecommerce leaders receiving strategy and tactics around:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Identifying what your customers want<\/li><li>Getting site visitors un-stuck<\/li><li>Improving conversions<\/li><li>Earning more revenue, customers, and leads<\/li><\/ul>\n\n\n\n<div class=\"wp-block-stackable-columns stk-block-columns stk-block stk-g8d3r3o reusable-block-2-column good-question-block\" data-block-id=\"g8d3r3o\"><style>.stk-g8d3r3o{max-width:1500px !important;margin-top:30px !important;margin-bottom:30px !important}.stk-g8d3r3o-column{max-width:941px !important}@media screen and (max-width:767px){.stk-g8d3r3o{--stk-col-order-1:2 !important;--stk-col-order-2:1 !important}}<\/style><div class=\"stk-row stk-inner-blocks stk-block-content stk-content-align stk-g8d3r3o-column\">\n<div class=\"wp-block-stackable-column stk-block-column stk-column stk-block stk-rlz9wxo horizontal-form-container\" data-v=\"4\" data-block-id=\"rlz9wxo\"><style>.stk-rlz9wxo-container{margin-top:0px !important;margin-right:0px !important;margin-bottom:0px !important;margin-left:0px !important;background-color:#c3ddf0 !important;border-top-left-radius:12px !important;border-top-right-radius:12px !important;border-bottom-right-radius:12px !important;border-bottom-left-radius:12px !important;overflow:hidden !important;max-width:701px !important;padding-top:40px !important;padding-right:35px !important;padding-bottom:40px !important;padding-left:35px !important}.stk-rlz9wxo{margin-top:0px !important}.stk-rlz9wxo-container:before{background-color:#c3ddf0 !important}@media screen and (max-width:1023px){.stk-rlz9wxo-container{padding-bottom:60px !important}}@media screen and (max-width:767px){.stk-rlz9wxo-container{padding-bottom:60px !important}}<\/style><style class=\"stk-custom-css\">.stk-rlz9wxo figure{margin:0 !important}<\/style><div class=\"stk-column-wrapper stk-block-column__content stk-container stk-rlz9wxo-container stk-hover-parent\"><div class=\"stk-block-content stk-inner-blocks stk-rlz9wxo-inner-blocks\">\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-0irq6lm\" id=\"span-style-color-0277-c-0-class-stk-highlight-enjoying-this-article-span\" data-block-id=\"0irq6lm\"><style>.stk-0irq6lm{margin-bottom:12px !important}.stk-0irq6lm .stk-block-heading__text{font-size:36px !important;color:#ffffff !important}@media screen and (max-width:1023px){.stk-0irq6lm .stk-block-heading__text{font-size:36px !important}}@media screen and (max-width:767px){.stk-0irq6lm .stk-block-heading__text{font-size:24px !important}}<\/style><h3 class=\"stk-block-heading__text has-text-color has-text-align-center\"><span style=\"color: #0277c0;\" class=\"stk-highlight\">Enjoying this article?<\/span><\/h3><\/div>\n\n\n\n<div class=\"wp-block-stackable-text stk-block-text stk-block stk-g6mjcwy\" data-block-id=\"g6mjcwy\"><style>.stk-g6mjcwy{margin-bottom:20px !important}.stk-g6mjcwy .stk-block-text__text{color:#ffffff !important}<\/style><p class=\"stk-block-text__text has-text-color has-text-align-center\"><span style=\"color: #000000;\" class=\"stk-highlight\">Subscribe to our newsletter, Good Question, to get insights like this sent straight to your inbox every week.<\/span><\/p><\/div>\n\n\n\n\t\t\t\t\t\t<script>\n\t\t\t\t\t\t\twindow.hsFormsOnReady = window.hsFormsOnReady || [];\n\t\t\t\t\t\t\twindow.hsFormsOnReady.push(()=>{\n\t\t\t\t\t\t\t\thbspt.forms.create({\n\t\t\t\t\t\t\t\t\tportalId: 5834619,\n\t\t\t\t\t\t\t\t\tformId: \"64ede74e-e88f-44c7-996f-78859799755a\",\n\t\t\t\t\t\t\t\t\ttarget: \"#hbspt-form-1768316792000-1685732565\",\n\t\t\t\t\t\t\t\t\tregion: \"na2\",\n\t\t\t\t\t\t\t\t\tcssRequired: \".submitted-message { overflow: auto; } .hs-form-88422a7d-0355-4f27-b674-4b9fcc71560c, .hs-form-ac90f61a-a614-4bcd-b57a-18cd0e91ceff { color: #fff }\",\n\t\t\t\t\t\t\t})});\n\t\t\t\t\t\t<\/script>\n\t\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1768316792000-1685732565\"><\/div>\n<\/div><\/div><\/div>\n<\/div><\/div>\n<div class=\"tkugp-items-wrap\"><div class=\"tkugp-bottomcontent\"><\/div><\/div>","protected":false},"author":55,"featured_media":93716,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","wpcf-summary":["When it comes to incentivizing customers, it's easy to default to using a price or percentage discount. While this strategy may boost your sales numbers, it comes with some serious tradeoffs."]},"insight-category":[32],"insight-tag":[80,10087,83],"class_list":["post-93715","insights","type-insights","status-publish","format-standard","has-post-thumbnail","hentry","insight-category-customer-acquisition","insight-tag-conversion-rate-optimization","insight-tag-discounting","insight-tag-repeat-conversions"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-scaled.jpg",2560,1707,false],"thumbnail":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-150x150.jpg",150,150,true],"medium":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-300x200.jpg",300,200,true],"medium_large":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-768x512.jpg",768,512,true],"large":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-1024x683.jpg",1024,683,true],"1536x1536":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-1536x1024.jpg",1536,1024,true],"2048x2048":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-2048x1365.jpg",2048,1365,true],"teaser":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-380x215.jpg",380,215,true],"teaser-large":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-760x430.jpg",760,430,true],"insights-featured":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-600x400.jpg",600,400,true],"case-study-logo-small":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-scaled.jpg",112,75,false],"gform-image-choice-sm":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-scaled.jpg",300,200,false],"gform-image-choice-md":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-scaled.jpg",400,267,false],"gform-image-choice-lg":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-scaled.jpg",600,400,false],"profile_24":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-24x24.jpg",24,24,true],"profile_48":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-48x48.jpg",48,48,true],"profile_96":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-96x96.jpg",96,96,true],"profile_150":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-150x150.jpg",150,150,true],"profile_300":["https:\/\/thegood.com\/wp-content\/uploads\/the-downside-of-discounting-300x300.jpg",300,300,true]},"post_excerpt_stackable_v2":"<p>Special Note: This article was inspired by an episode of our podcast, Drive &amp; Convert. We go into much more detail on discounting here than we did on the show, but you might enjoy listening to the original conversation and subscribing to receive future episodes. Discounting seems like a no-brainer way to increase site sales. You certainly don\u2019t have to go far to find this tactic.&nbsp; The prevalence of discounting implies this is an effective way to convert prospects into customers.&nbsp;&nbsp; But here\u2019s the truth:&nbsp; While discounting feels like a good way to improve your conversion rate and increase sales,&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Laura Bosco","url":"https:\/\/thegood.com\/author\/lbosco\/"},"comments_num_v2":"0 comments","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Discounting Is Bad For Your Brand (And What To Do Instead)<\/title>\n<meta name=\"description\" content=\"Discounting may motivate customers to buy, but discounts aren\u2019t optimization \u2014 they\u2019re margin drain. 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