When it comes to sales tactics, it’s never a good idea to offer discounts to new clients. Here’s why and what to do instead!
We’ve personally experienced this recently, with businesses offering seasonal specials worth hundreds of dollars that we would have been eligible for if we hadn’t booked earlier.
We’ve also seen it play out publicly on social media, with companies receiving complaints about product promotions from people who had already purchased at full price.
Fear of missing out (FOMO) is a great sales tool when used in the right way, like when you limit the number of clients you take on in a year, or reward email subscribers with exclusive offers. It’s much less effective when customers feel like they’ve missed out on a better deal.
Often businesses default to discounting when they want to boost sales quickly. Unfortunately this can end up having the opposite effect, lowering the perceived value of your product and frustrating your customers. No one wants to pay a premium price for an identical product or service! It can also send the message to potential clients that they should wait until the next promotion to get the best price.
Instead, it’s a much better proposition to offer a ‘bonus extra’. Customers are less likely to begrudge someone who scored free delivery or a complimentary bottle of champagne. Even better, if you decide to run a promotion that would also apply to current clients, turn it into an opportunity to surprise and delight them!