How to Give Discounts Correctly: Coupons, Sales, Promo Codes

The word "discount" is beloved by buyers, promising savings on the most tangible resource—money. Purchasing a service at a profit brings double the pleasure, doesn't it?

Discounts remain key tools in sales promotion, helping manage the number of customers and their purchase volumes. They can encourage new customers to make their first purchase and convince regular clients to buy a series of procedures at a reduced price or try new services.







VARIETY OF SALES PROMOTION

There are four main areas in marketing management: attracting consumers, retaining them, developing, and returning customers. Each area can have its own sales promotion program with specific objectives.

Attracting Consumers:

- Market Entry Pricing Strategy: This involves setting prices lower for a newly opened clinic compared to the average market price. The goal is to gain as many consumer experiences as possible, leading to repeat purchases. Initially, discounted prices are offered for activation products, which gradually increase after market coverage. Retaining Consumers:

- Disciplinary Discount: This reduces the cost of services with guaranteed regular and timely treatment, as well as compliance with doctor's recommendations. For example, preventive teeth cleaning at a dental clinic might cost $50 per procedure if done twice a year, but $150 if done once a year. Developing Customers:

- Discount on Related Services or Products: This encourages customers to purchase additional services at a discount. For instance, a patient coming for lipolysis might be offered a discounted SMAS lifting procedure. Returning Customers:

- Cost-Related Discounts: If the reason for a client's departure was high service costs, offering discounts can be a way to bring them back. It's important to calculate the economic feasibility of returning customers who find the usual price level unaffordable.



HELPFUL ADVICE

When offering a discount, always explain why the price is lower than usual. For example, you might announce a discount on a biorevitalization procedure because a new employee has joined the team, and you need client feedback on the quality of their work.

Providing a reason for the discount is crucial to maintaining the perceived value of the service. If customers don't hear your reasons, they might invent their own, potentially harming your brand's image.



PRELIMINARY ECONOMIC CALCULATION

Sales promotions with discounts should be short-term and occasional to avoid the clinic being seen as a discounter. This is different from loyalty programs for regular customers, which aim to retain consumers and maximize profit from selling them higher-value services.

Ideally, sales promotions increase cash flow and profits, provided they are not achieved through critical price dumping. Planning is essential, with a preliminary economic calculation to predict the expected financial impact of the promotion.

5 Groups of Sales Promotion Tools

Discounts Stock Bonuses Presents Trial Procedures



SIZE MATTERS

Small discounts don’t work, and big ones eat up profits. The first significant discount for the client is 5%. Any discount should have a specific monetary value because only some clients will be interested in the final cost. For products with a known price range and stable demand, percentage discounts can promote sales. However, if the client doesn't know the original price, the percentage discount means little. So many percent of what price? This should be understandable in commonly accepted monetary units.



TYPES OF DISCOUNTS

1. Selective Discount: Offered for specific products important to the clinic, such as flu vaccines out of season.
2. Disciplinary Discount: Given when the client fulfills certain conditions, akin to a “bonus discount.”
3. Affiliate Discount: Provided to partners who sell the clinic's services. Partners then sell these at retail prices to their clients.
4. Volume Discount: Given for purchasing products above a certain amount, often for complex packages and medical programs.
5. Club Discount: Available to members of a regular customer club or VIP club.
6. Corporate Discount: Offered to corporate purchasers of health plans for their employees.
7. Cross Discount: Applied to services sold after purchasing the main service/procedure/operation.
8. Accumulative Discount: Increases with the customer's total purchases.
9. Exclusive Surprise Discount: Given unexpectedly, often creating a viral effect.
10. Discount under Special Conditions: Offered individually for large volume purchases of slow-moving products.
11. Discount for Entry of Selling Partner: One-time discount for a new partner joining the sales of the clinic's products.
12. Personal Discount: Given for special conditions, such as attracting a new corporate client.
13. Holiday Discount: Offered to special segments in honor of their holiday.
14. Discount for Prepayment: Provided to customers who pay before receiving the product.
15. Seasonal Discount: Relevant to the season, used to expand market share and attract new clients.
16. Seller's Discount: Allows the seller (administrator) to "close the deal" with the client.
17. Discount for Viral Marketing: Offered to patients who came on another patient's recommendation, with a discount for the referrer as well.
18. Discount for the Complex: Applied to a group of services that solve one problem for the patient.
19. Discount for Regularity: Given for regular purchases.
20. Cash Discount: When paying by card, the acquiring commission is split between the seller and buyer.
21. Discount on First Purchase: Encourages customers to try the product.
22. Discount for Purchasing through a New Channel: For purchases through an online store or partners.
23. Discount Subscription: Provides a limited number of discounts on purchased products.
24. Limited Time Discount: Ranges from several hours to several months, encouraging prompt action.
25. Discount for Timely Payment (Skonto): Offered for payment within the stipulated time after receiving the product or for timely installment payments.
26. Automatic Discounts: Often invisible to the buyer, these reduce costs with high customer loyalty, shown by frequent and/or large purchases.
27. Melting Discount: Decreases gradually over time.
28. Discount for Medical Workers: Enhances the brand among doctors and attracts those from other clinics.


A discount is quickly forgotten, so it should be offered in a fun and creative way to make it memorable. It's essential to ensure that discounts are compensated by increased sales.



How Not to Give Discounts

Instead of relying on discounts, consider the following strategies to enhance your sales and customer loyalty:

- Deal with Objections: Address any concerns or hesitations customers may have directly. This can help them see the value in your product or service without needing a discount.
- Increase Product Value and Grow the Brand: Focus on improving the perceived value of your product or service. Strengthen your brand image to make your offerings more desirable.
- Change the Importance of Price: Shift the focus away from price by emphasizing the unique benefits and quality of your product or service.
- Use Gifts and Bonuses: Offer incentives that encourage repeat purchases and long-term loyalty without directly reducing prices.


Benefits of Gifts and Bonuses Over Discounts

- Bonuses: Motivate repeat purchases by acting as a delayed discount. They stimulate long-term loyalty and are often remembered longer than immediate discounts. Some bonuses may expire without usage, minimizing the financial impact. - Gifts: Provide more perceived value than their cost. They create delight and can stimulate viral marketing.

Ranking Sales Promotion Tools by Effectiveness



From most to least effective:

1. Present: Unexpected and often exclusive benefits that trigger viral marketing and encourage repeat business.
2. Customer Discount and Savings Card: Allows for accumulating savings towards a significant purchase, such as an annual medical care program.
3. Promotion: Limited-time offers that are better than usual deals.
4. Discount: Limited-time better-than-usual price offers.
5. Test Use: Offer a free or low-cost trial period for services, like an annual medical support program, followed by a chance to purchase.
6. Alternative Proposals: Provide several options to solve a customer's problem, reducing the chance of refusal.
7. Win-Win Lottery Upon Purchase: Increases purchase likelihood and stimulates viral marketing.
8. Coupon or Certificate for Purchase: Acts as pre-paid money for the next purchase within a limited time.
9. Discount for Specific Days and Times: Useful if the clinic is idle at certain times or wants to manage client flow.
10. Hot Discount: For clients who show hesitation or for filling idle times.
11. Early Bird: Gifts or discounts for the first few customers.
12. One-Day Dumping: A day of lowest prices to attract undecided customers.
13. Service Discount Cards for All Clinics: Removes obligations to a specific clinic.
14. Sales During Referral Closure or Staff Changes: Adjust prices when a referral ends or a doctor leaves.
15. Best for Same Price: Offer a higher-tier consultation at the price of a lower-tier one.
16. Price Increase Announcement: Encourage customers to buy at current prices before an increase.
17. Money-Back Guarantee: Only viable for medical goods.
18. Club of Regular Customers: Membership provides access to all club services "for free."
19. Payment in Installments: Attract customers who need financial flexibility.
20. Cashback: Return a portion of money to be used for future services.
21. Free Sample: Effective for selling medical goods.
22. Gift for Public Recommendation: Provide a discount or free product for public endorsements.




Conclusion

By focusing on these alternative strategies, you can enhance customer satisfaction and loyalty without relying heavily on discounts. This approach helps maintain the perceived value of your services while still incentivizing purchases and fostering long-term relationships with your clients.