“You saved $62.00!”
There’s nothing more glorious than saving money. There’s a certain psychological pull associated with the feeling you get when you see how much money you saved. It’s like a victory and it’s simply beautiful. You beat the system.
Well, not exactly. Deals are engineered in such a way that even in the cases where a business doesn’t make a profit on the sale of a single discounted item, the rest of what the shopper ends up purchasing ends up balancing things out.
There’s a lot of reasons why customers are so attracted to deals, and why promoting “smart” spending can be so profitable for your business. As a marketer, your goal is to leverage smart spending culture to your advantage. Let’s examine a few ways smart spending culture can work for your business.
One of the most effective ways to promote the “smart spending” mindset, is to go out of your way to highlight the value that the customer has received.
Here’s a personal example. Last week, I went grocery shopping and spent about fifty dollars on food. At the bottom of my receipt, it showed that I saved ten dollars. Awesome, right? But at the end of the day, I still spent fifty dollars, and a big portion of those fifty dollars was spent on items that I normally wouldn’t have bought. I still felt great about it though, because I saved ten dollars, and they let me know. Now I want to go back and spend even more.
The Scarcity Effect
The limited-time nature of deals sets off a trigger in our brains telling us that we need to buy this thing now, or else we might miss out. It creates a scarcity effect because we worry that a certain item might sell out before we ever get the chance to buy it.
It’s the whole “get it now before it’s gone forever” mentality. We don’t like missing out on things, and scarcity can even make customers buy more of a product than they actually would reasonably need in the first place.
The Illusion of a Good Deal
Half of the time people spend money on a product that’s on sale, they do it because they think they’re getting a good deal. In reality, they’re not actually saving that much at all.
One company (that you’re almost certainly familiar with) does this without even instituting a real sale: Walmart. Whereas most products at most stores have prices like $9.99 and $49.99, equivalent Walmart prices look something like $9.83 or $49.50. They do this so that even when you’re buying something for full price at Walmart, you still feel like you’re getting a good deal.
Incentivize With CoGoBuzz
With CoGoBuzz, incentivizing your customers to spend more has never been easier. Our cutting-edge marketing service makes it totally effortless to digitally promote all of your big deals and promotions! Via automated WiFi, SMS, and Email solutions, we’ll promote your business both in-store and out, straight to your customers’ mobile devices.
Through WiFi, CoGoBuzz starts by using your in-store HotSpot to display an interactive landing page tailored to your business. It features your top deals, promotions, and even your new text-based loyalty program! On top of that, we build a customer profile for every single customer that logs into your HotSpot, hooking you up with valuable marketing data.
Check out the rest of our website to learn more!
How do you incentivize customers with deals? Sound off in the comments!