Mastering the Psychology of Discounts to Make More Sales

What is the right strategy when it comes to discount marketing: presenting strong visuals, mystery offers, or the word "free" in your print ads?

Everyone is attracted to a deal, no matter the size. By using coupons or discounts, you appeal to shoppers in a unique way.

Incentives Prompt Action

When shoppers feel like they're getting a good deal, they are excited and more willing to purchase.

Incentives also create urgency, build goodwill with clients, and dissuade people from looking for other offers.

Want to move more products? Experiment with discount tactics like these:

1. Dollar or Percentage Off

This discount type is the most widely used, simply offering a reduction on the original price, such as $50 savings or 40% off.

Discounts can be placed on specific products or applied to an entire order.

2. BOGO

Short for, "Buy One, Get One," this discount type prompts customers to purchase additional items.

Examples of BOGO include, "Buy One, Get One Free" or "Buy One, Get 50% Off the Next Item."

3. Quantity Discounts

Quantity discounts encourage shoppers to increase their order value to receive a discount.

For example, "Purchase two items and get the third free," or, "Receive 30% off your $100 purchase."

4. Rebates

A rebate is an amount that's returned or refunded to customers after their initial purchase.

Often used for large-ticket items, the most common is a mail-in rebate. One example? Listing a price as, "$499 after rebate."

5. Free Shipping

Increasingly popular among online business owners, this removes the shipping cost associated with any order.

Many merchants offer free shipping for a specific order amount, such as "Free shipping when you spend $25 or more."

Test Discount Variations to Find A Formula for Success

Since there are so many ways to frame discounts, it can be helpful to test multiple variations of a discount to see which are most impactful.

For example, you could offer a segment of your VIP customers a percentage discount and another segment a dollar-off discount to test which discount best appeals to core customers. Or you can experiment with varying communication channels, length of promotions, or discount "add-ons" (like free shipping or store credit for a future purchase).

Here are some examples to consider:

Catherine's Women's Clothing: Private Offer

In an ad pitching swimwear specials, Catherine's framed a gleaming yellow swim ring afloat a dreamy blue pool.

The overlaid text offered one of two choices: a "Buy 1 Get 1 Free Clearance Item," or "Private Offer Up To $100 Off." Catherine's used imagery that transports viewers to a place they want to be, evoking an emotional fondness for swimwear. The bright floaty draws eyes to the deal, and the company wisely gave two sale options to accommodate the price points of individual customers.

J. Crew: Flash Sale

In a spread featuring outdoor apparel, J Crew positioned a yellow sailboat cruising the waves of a dark blue backdrop, using this pitch: "Smooth seas and clear skies – perfect conditions for a flash sale. Extra 30% Off & Free Shipping, Use Code: SetSale."

For this flash sale, J. Crew took advantage of good sailing weather to create urgency and nostalgia that tied to real life. Because this ad catered to unique preferences and behaviors of a particular market segment, the piece moved beyond a sale into the emotional story of its readers. This, combined with a compelling offer (and clever coupon code), brings a winning combination.

Once you have a better understanding of your most effective offers, you'll be a great position to mix up your campaigns and boost customer engagement.

Transform Customer Complaints into Great Reviews and Referrals

In business, problems always arise.

Things malfunction, customers get frustrated, or miscommunication causes delays. However annoying, big problems are still a gateway for better interaction. Consider this example from Toyota:

The year was 2013, and Webin Manzana noticed the dashboard of his 2008 Camry was melting due to the sweltering weather in the Philippines. Because the warranty on his vehicle had long since lapsed, Toyota Motors Philippines refused to get involved.

Manzana, frustrated with the inherent defect in the dashboard material, decided to fax a letter directly to the CEO of Toyota, Akio Toyoda. To his shock and delight, the next day he received a call from Toyota Motors Philippines, arranging to pick up the Camry and replace the dashboard immediately.

3 Ways to Resolve Sticky Situations

When handled poorly, customer complaints can deal a heavy blow to your business.

Here are three ways to resolve sticky situations while improving relationships with your clients.

1. Respond Quickly and Calmly

Whether you respond through e-mail or in a more personal way, time is essential in handling complaints.

Even if you can't immediately fix a problem, remember that the thing your customer wants most is an acknowledgment of the issue and an affirmation of the frustration they feel. Listening patiently can diffuse many situations, especially if you actively sympathize and ask clarifying questions.

Put out fires quickly, and remain calm by reminding yourself the customer is not necessarily upset with you, but with the situation. 

2. Tell the Customer How You Plan to Address the Problem (in detail with a specific time frame)

Once you understand why the customer is upset, you can begin to work on solutions.

If customer oversight was the only issue, a specific reparation (like partial refunds, replacements, or credits on future orders) might quickly mend the hard feelings. If you want to go a step farther, consider offering the customer not only a full refund or replacement but also a bonus item. If you are replacing a T-shirt, could you send them a second T-shirt to give away to a friend?

Every day, brand trust diminishes because of negative customer service experiences. Therefore, the psychology of offering a resolution cannot be understated.

In some situations, it may be best to ask the customer what he feels should be done to best resolve the issue. This allows a person to feel they have won (or that they were correct), and that your organization is willing to go the extra mile to make things right.

3. Keep Working to Ensure the Customer is Satisfied

After a problem is resolved, what steps will you take to follow up on your client again?

Can you call a week later, or send a follow-up e-mail after three days? Circling back gives you the chance to find out if you handled the issue thoroughly, whether a solution was effective, or if the customer had other questions.

Most people will be impressed that you take this extra step to solicit their opinion or ensure their satisfaction.

A Silver Lining

Though handling complaints can be tough, over time, it gives you greater insight into your products, your services, or into the minds of your clients.

Effective complaint management not only resolves problems, but it can transform people into advocates for your brand and sources for future referrals.

Visual Marketing Content Trends to Prepare For in 2017

The new year often brings with it a time of unabashed change. Regarding visual marketing content, this seems to happen like clockwork every January as a legion of marketing professionals re-ignite their search for the "next big thing" to attract the attention of their target audience. If you want to make sure your 2017 begins as strong as it possibly can, there are some key visual marketing content trends that you need to be aware of.

Integration Continues

According to SmartInsights, one of the biggest upcoming visual content trends to prepare for is nothing new - a further integration of digital and traditional marketing. Only 5% of marketing professionals who responded to a survey say that their campaigns are fully optimized and integrated at this point, but 33% are actively trying to get to that point. Another 33% are currently experimenting with limited integration, and another 12% consider themselves integrated, but not necessarily optimized in the way that they'd like to be. That certainly doesn't mean they aren't trying, however.

Never forget: anyone who tells you that you should rely on EITHER print OR digital marketing is probably just trying to sell you something. To reach the widest possible audience, you need to look at them as two important halves of the same whole.

Visual Content Is No Longer a "Single" Technique

In the recent past, marketers tended to look at visual content the same way they looked at social media or video production - all separate techniques that made up a larger marketing campaign. This has been particularly true in terms of people who were doing both print and digital marketing. Visual content was more towards the print side of things, whereas digital skewed towards text-based materials. The wind is changing, though, and it's clear that visual content no longer serves this purpose. Instead, it must become the very foundation of your larger campaign, the through-line that connects all of your various channels together in a visual way.

Case in point: research has shown that people following directions with both text AND illustrations do an incredible 323% better than those who are only relying on text. When taken together, this means that visual marketing content has a place in every aspect of your larger campaign, from that email you're about to send out, to new leads, to the breathtaking new flyer you're about to hand off to USPS. From that perspective, the biggest trend in visual content marketing to prepare for is the very idea that you'll now be relying heavily on these elements in more places than ever before.

Looking Forward

These are just a few of the key visual marketing content trends that you need to be aware of to prepare better for what awaits you in 2017. One thing is for sure: visual marketing collateral is here to stay, and in many ways, it is more effective than ever. The shape that collateral takes is changing, though, as it should be, and it's up to you to stay ahead of the curve, so you don't accidentally find yourself getting left behind.

Overcoming the Getting Started Obstacle Course

Collette Divitto was born with Down syndrome, but she hasn't let that stand in the way of doing what she wants with her life. As a passionate baker, Collette sought opportunities to work in that field and earn a living. However, every place she applied told her that she was not a good fit. Instead of giving up, she formulated her own cookie recipe and went into business for herself.

Her cinnamon chocolate chip cookies were popular with friends and family. When one friend after another told her, "you should sell these!" she took the leap and began her small business out of her apartment. She bought business cards, made a website, and learned how to create invoices. Before long, she was taking orders online and had her first local client, the Golden Goose Market.

While Collette faced a unique set of challenges getting her business off the ground, everyone who wants to start an enterprise will face hurdles. Overcome these hurdles by asserting the sort of grit and curiosity that got Collette started:

1. Remember that you don't need permission.

Collette first tried to work for other businesses. When they did not see a use for her, she decided to go out on her own. Instead of waiting for an opportunity to present itself, those who wish to forge a business should follow Collette's courageous steps.

2. Be willing to learn new skills.

When bootstrapping a company and getting it going, you may not be able to hire people for every role. Collette learned how to do her own accounting so that she could get started. If she'd waited for someone who could do that job for her, she might still be waiting to start.

3. Reach out to the network you already have.

Collette's local client, the Golden Goose Market, is right in her neighborhood. Since they already knew Collette, they were willing to take a chance on her and display her cookies. Look to your own network; think about the people you know from old jobs, friends of the family, and other contacts. They may have a need for your service or know someone who does.

4. Capitalize on what makes you unique.

Collette Divitto got promotion through human interest stories because of the obstacles that she has overcome. Think about what sets you apart from your competition. It can be a brand story, a unique product like Collette's top secret cinnamon cookie recipe, or an aspect of your customer service that goes above and beyond what your competitors provide. Recognize your unique attributes and learn how to convey them to your prospects. These qualities are the ones that make your business more appealing than the rest.

Being willing to take risks and dedicating the work necessary can help ensure your business's success. This sort of courageous approach can get you through those slim early times and make it more likely that your business will thrive.

Content Marketing Best Practices to Double Down on in 2017

Marketing is an industry that is constantly changing, especially since technology does the same. If you think back to what your day looked like even five years ago, it will likely have little resemblance to the work you've already done today, or how you're doing it. Despite that, there are still some best practices that are as powerful today as they ever were as far as content marketing is concerned. Along those lines, there are a few key content marketing best practices that you're going to want to double down on as 2017 fast approaches.

Forget About SEO

In today's digital climate, the importance of writing content for people first and search engines second cannot be overstated enough. Google has made some massive changes to its algorithm in the last year that favor quality, well-written content above all else. Google, Bing, and more have all placed a strong emphasis on making sure that content is king. As long as you create your marketing collateral with that in mind, these companies have promised to make sure that you're taken care of regarding search engine rankings.

Focus on helping people. Try to provide insight and provoke a response. If you craft your campaigns with these simple goals in mind, everything else will fall into place.

...But Don't Totally Forget About SEO

None of that is to say that SEO, in general, isn't necessary. Just make sure that when it comes to content marketing, you're not trying to stuff in as many keywords as possible. Instead, shift your SEO efforts to other areas, like making sure that you're updating your content regularly, that it has all of your (correct) contact information, and that you're promoting yourself through outlets like social media.

More Than Just Blogs

Remember that blogs are a powerful tool in the content marketing game, but they're not the only tool you have to play with. Things like newsletters, eBooks, and user guides are all an excellent way to reach your target audience in fun new ways. Visual materials like infographics, charts, and even videos are also a great way to bring the visual element that you're known for into the content marketing arena in a powerful way.

Refine Your Customer Persona

Many people use customer personas to help guide their marketing campaigns, something that is especially helpful when it comes to content marketing. Something you cannot forget to do, however, is to update these personas on a regular basis. Think about how much your business has changed in the last year and understand that your ideal customer has probably changed just as much. Use the new year as an opportunity to re-evaluate your existing buyer personas so that you can always keep your eye on the prize, so to speak.

A new year brings with it the opportunity to start fresh, but that doesn't mean throwing the baby out with the bathwater. Embrace new techniques, but also never lose sight of the old saying of "if it ain't broke, don't fix it." Some content marketing best practices are certainly not broken, and those solid techniques are what you can be doubling down on in the new year.

Using the Holiday Season to Your Advantage in Your Marketing

When it comes to marketing success, the importance of a timely, relevant campaign cannot be overstated enough. You see this all the time with major brands - some big event is going on somewhere in the world like the Super Bowl and marketers rush to be the first to integrate it into their campaigns. As the cheery holiday season rolls around yet again, you're presented with the perfect opportunity to do exactly that - at least until the stroke of midnight on New Year's Eve.

But, if you really want to integrate the holidays into your marketing campaign and generate the type of success you deserve, you'll want to keep a few very important things in mind.

Use Holiday Visuals Whenever Possible

Visuals are always an important part of your marketing collateral, but they become especially so during the holiday season. From roughly November until the Christmas holiday season passes, people are already in a receptive mood for this type of imagery - so filling your marketing materials with holiday-themed colors, Christmas trees, packages, and other items is a great way to make sure you're noticed.

According to one study, this type of imagery can increase a person's retention of your messaging by up to 80%. This type of visual element can make your content more likely to be shared up to 40 times more than the average amount.

Look for Local Events You Can Sponsor

If there's one thing you can essentially guarantee about the holiday season, it's that calendars will be filled to the brim with holiday events all throughout the month of December. If you really want to attract the attention of that ever-important local market, you should start looking around for local events that you can sponsor. Not only can you help get your brand out there and raise awareness, but even if the event is only slightly related to your product or service you can still make new contacts and generate new leads as a result.

It's All About Emotion

If there is one key to success regarding holiday marketing, it can all be boiled down to a single word: emotion. The holidays are a naturally emotional time as people get nostalgic for friends, family members, and holiday experiences of years past. It's also a time where people make decisions emotionally rather than rationally - especially when it comes to purchases. Because of this, you should try to lean into the most emotional factor of your campaigns as much as possible. Focus on cheery words and images that will help people feel good about things like giving back, "paying it forward," and more. This is more likely to trigger an emotional response in your campaign, which will spawn action sooner rather than later.

These are just a few of the core ways you can use the holiday season to your advantage throughout your marketing campaign. Perhaps the most important benefit of the holidays is that you're working with a built-in ticking clock. Christmas is right around the corner, and no matter what you do, you can't delay it. People will naturally feel inclined to get those last minute gift purchases in before the big day arrives. If you've been playing into the holidays for your entire campaign, you can pretty much guarantee that you'll be on the forefront of their mind.

Content Marketing Is More Powerful Than Ever

At its core, content marketing is the idea that by creating and distributing high-quality content that is relevant to your products, your services or your brand, you can more easily attract and even retain people who are interested in what you're selling. If you sell stereo equipment and write a quality blog post about what to look for in a new home theater, you're more likely to attract new customers by combining that blog with the sales flyer you sent them in the mail.

Put Information in a Format That People Want To Embrace

When people think of content marketing, they usually think of text. While this is true, it's important not to neglect the visual element. Case in point: pairing your marketing message up with the right visual image can increase the amount of information a reader will retain dramatically. According to one study, people are only 10% likely to remember information they hear 72 hours after they hear it. If that same information is conveyed in a piece of effective, content marketing with a relevant, attention-grabbing image, that number increases to an incredible 65%!

Color Really Does Mean a Lot

Continuing a discussion about the more visual side of content marketing, one of the most important elements that prove these types of marketing collateral can be more effective than ever all comes down to a single word: color. Another study found that if you're able to include colored visuals in your content marketing (or any marketing for that matter), you instantly increase someone's willingness to read and experience that content by an astounding 80%.

People Love Learning

Consider the fact that content marketing can be a lot more than just "marketing" - it can be an educational tool, as well. Take infographics, for example - especially since the advent of social media, infographics with rich, striking visuals have quickly proven to be powerful ways to get your message across. In fact, according to one recent study, an infographic is likely to be shared three TIMES more than any other piece of content on social media. When combined with print marketing, you can help establish your brand as an authority in your field to a much larger audience than imagined.

Content Marketing Creates a Higher Return on Investment

If you needed additional reasons to believe that content marketing is stronger than ever, look no further than one of the most important indicators: ROI. Studies have shown that not only does content marketing cost roughly 60% less than traditional outbound marketing like digital ads, but it can also potentially generate THREE TIMES as many leads!

Stats like these go a long way towards proving that content marketing is an excellent way to take your marketing message and present it to your target audience in a way that they're more than ready to receive. With the right piece of properly designed collateral, you accomplish everything from increasing awareness of your brand to establishing yourself as the real authority you are..... and everything in between. When you consider that 200 million people now use ad blockers as they browse the internet, high-quality, properly designed content is about to become even more important as time goes on.