As the economic rollercoaster takes its course, digging into that old change pocket has become less comfortable for customers in all industries. Many business owners have resorted to marketing strategies that include daily discounts, special product offers and package deals, otherwise offering cheaper prices for particular services or products in order to attract more customers. With economic numbers looking more promising than ever, weaning your customers off the discounts while still seeing them walk through that front door is very crucial to your businesses success.
Depending on the type of business in which you are involved , discounts and promotions can be the main source of where you generate revenue. When it comes to the hospitality industry, leaders have come to the conclusion that although customers have become dependent on special discounts and lavish deals, the time has come where prices must return to normal if companies hope to survive.
Things may be different when it comes to your business. If you own a restaurant or bar type establishment, you most likely offer daily drink deals or two-for-one dining discounts. Many restaurants have gotten involved with deal-of-the-day sites like Groupon, hoping to bring in new patrons while also keeping older customers interested. Though discounting products and services may seem like a quality business turn-around, it’s important to understand the role discounting plays in the overall success of your business.
At first sight, the most recent recession drove sales down in numerous industries all over the country. This unsightly turn of events left companies deeply discounting goods and services to avoid the nightmare of sales flat-lining. Though numbers may be the tell-tale sign of success, it is important not to let discounting overshadow the marketing aspects of your business. Being in tune with changes in your target market is crucial to your business strategy and marketing efforts. There may come a time when your core customers have realized they don’t need your product or service any longer. Now is the time to reassess your business audience and its place in the market.
Slicing down prices and eliminating discounted products and services may leave your customer base questioning whether your business is worth the money. It may be time to revamp your marketing message and better understand whether you’re pulling the right strings for your customer base.
Take a look at what kind of discounts and extended deals will work for your business. Offering long term rewards for your customers may help to increase sales and attract new patrons towards your products or services. Generate discounts and offers that will appeal to your customers without taking away from the bigger picture in your business plan. Engage with your customer; see what gets them excited and what will keep them walking through that door again and again.
E.J. Dealy is CEO of The Company Corporation, which provides incorporation services and products to small businesses and entrepreneurs in the United States including incorporating in Delaware, Florida, and California. The Company Corporation offers products and services including permit assistance, corporate kits, certificates of good standing, and business education books, but does not provide legal, financial, or tax advice.