E-Commerce Discount Strategy: Boost Sales and Build Customer Loyalty

Let’s be real: discounts are a big deal in e-commerce. But they’re not just about slashing prices - they’re about strategically boosting sales, building customer loyalty, and keeping your brand value intact. For small and medium-sized businesses (SMBs), especially in beauty, retail, and wholesale, a thoughtful discount strategy can make or break your bottom line.

Ready to level up your discount game? Let’s dive into how to structure your discounts to drive sales and keep your customers coming back for more.

Did you know that 66% of shoppers say they’ve made a purchase they weren’t planning on because of a discount​?*

Why a Smart Discount Strategy Matters

Discounts aren’t one-size-fits-all. A well-planned E-commerce discount strategy helps you do three important things:

• Protect Your Brand: Over-discounting can make your products feel less valuable and train customers to wait for sales instead of buying at full price. Did you know that constant discounts can lead to “deal fatigue,” making customers less excited about promotions altogether?​

• Drive Engagement: A timely, well-placed discount is often the nudge customers need to hit “buy.”

• Boost Profitability: Discounts don’t have to be huge to work. Moderate discounts (15%-20%) often hit the sweet spot of attracting customers while protecting your margins​.

How to Structure Your Discounts

Here’s a simple framework to help you decide what discounts to offer and when. Think of it as your discount cheat sheet:

1. Save the Big Discounts for Big Events (30-35%)

Go big or go home, right? But only for special occasions like Black Friday, Cyber Monday, or a big product launch. These discounts create excitement and drive high sales volumes.

How to Use It:

• Before the Event: Build hype with teaser emails and SMS campaigns like, “Our Biggest Sale of the Year Is Coming - Save Up to 35%!”

• After the Event: Follow up with customers who didn’t buy, showing them what they missed.

2. Offer Mid-Tier Discounts for Seasonal Promos (25-30%)

Seasonal discounts are your go-to for keeping sales steady. Use them during quieter periods or for specific product categories.

How to Use It:

• Treat your loyal customers with early access deals like, “VIP Alert: 25% Off Our Spring Refresh Collection! ”

• Create urgency with limited-time offers: “48 Hours Only 🌸 Shop Our Summer Sale Before It’s Gone 🌼”

3. Welcome New Customers with Moderate Discounts (15-20%)

First impressions matter! Offering a welcome discount is a great way to encourage first-time purchases and build trust with new shoppers.

How to Use It:

• Email 1: Offer 15% off to new subscribers.

• Email #2: Remind subscribers about their discount and feature a customized best-sellers collection

• Email 3: Didn’t buy? Sweeten the deal with 20% off and a friendly nudge like, “Re: That bag you wanted is 20% off for 24 hours!”

4. Use Small Discounts to Recover Lost Sales (10-15%)

Abandoned cart and browse flows are prime opportunities to recover lost revenue. A small discount can be just the thing to seal the deal.

How to Use It:

• Email 1: Remind them of their cart (no discount yet).

• Email 2: Offer 10% off to encourage action.

• Email 3: Raise it to 15% with messaging like, “ Going, going...almost gone! Save 15% Before Midnight!”

How to Automate Your E-Commerce Discount Strategy

The best part about this strategy? It’s easy to automate with tools like Klaviyo. Here’s how to make your life easier:

• Dynamic Discount Codes: Use one-time codes to prevent misuse and personalize offers.

• Behavior-Based Segmentation: Target customers based on what they do - like browsing, abandoning a cart, or buying frequently.

• Pre-Built Flows: Automate welcome emails, abandoned cart sequences, and seasonal campaigns so your discounts go out at just the right time.

Do Discounts Really Work?

Absolutely. Here are some stats to back it up:

• 66% of shoppers say they’ve made a purchase they weren’t planning on because of a discount​. (Capital One Shopping)*

• Businesses that offer targeted discounts see a 29% increase in repeat purchases compared to those that don’t​. (Capital One Shopping)

• Strategic discounting during major events like Black Friday has contributed to record-setting online sales, including $10.8 billion on Black Friday 2024 alone​​. (NPR)

These numbers don’t lie - discounts, when done right, can make a massive impact.

Pro Tips for Discount Success

1. Don’t Overdo It: Avoid running too many discounts at once. Stick to your structure and keep big discounts for big moments.

2. Add Urgency: Use time limits or scarcity messaging like, “Only a Few Left!” to drive immediate action.

3. Track Your Metrics: Keep an eye on what works and tweak your strategy as needed. Look at open rates, conversion rates, and revenue to measure success.

Discounts can be a powerful tool to boost sales and retain customers—but only if you use them strategically. With a clear discount structure and the right automation tools, you can maximize your profits and create a seamless shopping experience that keeps customers coming back.

Now it’s your turn: start planning your discount hierarchy today, and watch your e-commerce business thrive! Reach out - we can show you how!