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Psychology of Discounts - Attract Customers with Discount

Nov 02, 2020 12:00 AM

The Psychology of Discounts

Top 5 Tips to Attract More Customers with Discount Offers

In this day and age of fierce competition, making your business flourish is often a herculean task. If you want to make your place in the market, you need to know how to grab the attention of your target audience, which can be really tricky.

In-depth analysis of competitors and your target audience is crucially important. You can attract more customers in less time if you know about the needs and wants of your target audiences.

Along with several other tips and tricks to make your brand stand out of the crowd, an important and effective one is offering discounts and running promotions. Through discount offers, you can make your product pricing look reasonable, giving you an edge over your competitors.  

Those who think discounts are not an effective means to drive sales don’t understand the effect they can have as a marketing tool. All you need is a strategic approach to give the audience a psychological push via discount offers. 

Here are some valuable tips on how to make discount offers look more appealing.

Use the Rule of 100

The rule of 100 is a smart way to make your deal look like a good one. It suggests that you should give a discount in percentage when the price is under $100; however, if the price is more than $100, it is better to offer discounts in dollar amounts. As people don’t generally calculate the amount of money they can save through the offer, they just go with the one that feels and sounds better. Consumers reported 10% off $50 feels better than $5 off $50. Similarly, for an item of $300, offering the discount as saving $60 instead of 20% off, chances are customers will purchase the product.

Go for Visual Magnification 

Always try to find a way to make your offer look and feel bigger. One simple way of doing that is by making use of round values to show your discounted offers. It is a common perception that the majority of the customers prefer rounded numbers as the price in round numbers just feels right and it is more easily processed. On the other hand, non-rounded values are not fluently processed by customers, and they don’t perceive such discounts as significant ones. So, if you want to attract more visitors and make more sales, you should use round numbers to offer discounts.

Show the Original and Discounted Prices

In order to make your offer more appealing to prospective customers, state the original price first and then list the new discounted prices. According to some studies, the customers read left to right and will, therefore, consider your offer with more weight if the discounted price is positioned on the right of the original price. 

Mention Your Reasons for Offering Discounts

Although customers love discounts and your promotional offers will get you more sales, things can go south if you leave the visitors in ambiguity. Making your reasons for offering the discount clear, whether it be an End of Season Sale or a Black Friday special event, will incentivize your customers to participate. If special event dates aren’t an offer, consider offering your discounts to select audiences, to improve brand loyalty. For example, offering discounts to First Responders can increase your image, as you are supporting a celebrated group of individuals serving others tirelessly. Whatever your reasons for offering the discounts, informing your customers will increase the chances of gaining their business in the future. 

Try a Gradual Decrease in Discounts

Another smart and productive way to increase your sales is to start with a significantly higher discount, then, gradually move to smaller numbers as your sale goes on. For instance, you can list your offer at 25% off in the beginning of your campaign lowering it to 20% after two days, and dropping it an additional 5% every two days. Opting for this type of discount, you will be able to attract more customers who want to take advantage of the savings your offering early on, driving up your revenues. 


Discounted offers can be used as a powerful tool to drive more sales. If you want to boost your sales, you should carefully plan how to market your discounts strategically, instead of mindless slashing of prices. If you are looking for a platform to help you practice some of these strategies for free, consider First Responders Discounts as the platform for you.

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