5 Ways to Help Your Customers Save Money That Goes Beyond a Discount

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Ways to Help Your Customers Save Money

If there’s one truth I’ve found remains consistent across all industries and businesses it’s that every customer likes a discount. But at some point, businesses need to branch beyond basic markdowns on products and services to help their brand stand out and compete — especially if they’re operating in a crowded market.

If you’re struggling to expand your promotional messaging beyond the conventional discount concept, you’re not alone. You’re not stuck, either.

All that’s needed is some brainstorming to start turning those creative gears and get those ideas flowing. With that in mind, here are five unique ways you can help your customers save money without using a discount — and improve your brand awareness and customer loyalty at the same time.

1. Educate Customers

Providing discounts sends the message that a customer can get a deal. They can obtain a product or service for less than it is actually worth. While this is one way to promote sales, it doesn’t actually increase customer education surrounding the product or service.

Nevertheless, educating customers about your products or services is important in an information age. According to data reported by Salesify, as much as 96% of consumers conduct 10 minutes or more of research before making a purchase. People want to know what the best choice is, and 21st-century consumers are motivated by more than the bottom dollar.

Show your target audience why your products are the best solution to their pain points. This will encourage recognition of, confidence in, and loyalty toward your brand — all of which are important when they eventually go to make a purchase.

2. Offer Financing Alternatives

Another option is to look for other financial incentives beyond cutting into your profit margin. There are multiple additional ways to leverage a consumer’s natural interest in finding the best deal besides lowering the sticker price.

For instance, rather than discount a product or create a sale for a single item, go the other direction. Offer a bulk price when a customer makes a larger purchase. This works for services as well as products. For example, many streaming and cable services offer a lower rate when customers pay for a year upfront instead of committing to a monthly contract.

There are other options. PosiGen, for example, has leveraged leasing as part of its sales model. The solar power company skips the inhibitive set-up costs of installing solar power systems by leasing them out rather than selling them to customers. The company spreads out the cost over long-term payments which also helps customers save on their utility bills immediately after activation.

If you are charging for a product, don’t limit yourself to a set price and discounts. Explore the various ways you can bundle, bulk, and otherwise offer customers different financing options.

3. Communicate Value Over Discounts

Sometimes the goal of a marketing message shouldn’t be cost savings but rather communicating the value of a product or service. For example, if a farmer has grass-fed, pasture-raised cattle, the meat they provide will naturally be more expensive.

Rather than looking for ways to discount the product to encourage sales, they should emphasize the unique value of their product offering. Their meat may look the same as the next farms’ but it is substantially healthier and more humane than the traditional products coming from the cattle and meat-packing industry.

Consider the inherent value of your products or services. Are your customers aware of this value when considering making a purchase? Does it stand out when compared to a competitor’s lower-priced product offerings?

4. Leverage Technology

Technology can help you create value for customers without discounting your sales price. Digital transformation is creating automation and efficiencies in traditional and new industries alike. These reduce costs and provide savings that businesses can then pass down to their customers.

One example of this is the creation of digital securities for real-world assets. This is the process of tokenizing ownership of an asset, such as a collectible, a piece of real estate, shares of a company, or even debt. These security tokens have value and consumers can purchase them directly rather than the asset itself.

Securities.io points out that this offers several valuable benefits for consumers. It lowers financial barriers to entry by fractionalizing the up-front cost of investments. It also streamlines interactions and dramatically improves liquidity.

When a business creates savings like this through digital transformation, it should incorporate the savings into its marketing message. Educate your customer base (see Tip 1) on the savings you are providing so that they can perceive the value without the need for a further discount.

5. Cover Other Costs

Sometimes you can help your customers save money by covering added fees associated with a purchase. A few common ones that come to mind include:

  • Shipping and handling fees
  • Taxes
  • Installation fees
  • Added costs for customization
  • Fees to insure a product
  • Interest on financing
  • Fees for returning and restocking a product
  • Currency conversion costs
  • Booking and reservation fees

When a customer commits to a purchase price and ends up paying significantly more money due to unforeseen added expenses, it can give them a sense of being nickel-and-dimed. This can sour their experience. Covering those fees is a good way to help them save money while still encouraging them to commit to a full retail purchase.

Saving Money Without Discounts

Discounts can erode your profit margin. Even worse, they can dilute the value of your products and send a “cheap” message when a consumer is making a purchase.

Rather than go the discount route, look for alternatives that still help your customers without hurting your bottom line. Educate and communicate value. Offer financing alternatives. Pass technology savings on to your customer base. Cover unexpected or add-on costs.

However you go about it, look for ways to provide value and offer savings while preserving your margin. It’s the best way to ensure a win-win scenario for everyone involved.

Image credit: Mikhail Nilov; Pexels

Chalmers Brown
Chalmers is the Co-founder and CTO of Due. He writes for some of the largest publications and brands in the world including Forbes, The Next Web, American Express, and many more.

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