The world of e-commerce is at a pivotal moment. Consumers have changed their shopping habits, becoming more cautious with their spending and looking for greater value and benefits in every transaction. Price comparison has always been a thing, but now consumers spend more time on it. Comparing prices on their phones before entering a store or searching for online discount codes for brand X is now part of many shoppers’ routines.
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Brands have noticed this trend, and discount strategies are becoming a powerful tool to attract and retain customers. But it’s not just about lowering prices; it’s about creating smart strategies that increase both sales and customer loyalty. In this post, we will explore how companies can take advantage of these trends.
Trends in Discount Strategies
Discount strategies have rapidly been gaining traction in recent years. Why? The answer is simple: high levels of competition and the economic crisis have forced companies to look for innovative ways to stand apart from the competition. It is no longer just about who offers the best product, but who offers the best value and the best conditions.
Brands are increasingly investing in this since it has proven to be a highly effective strategy. It is no coincidence that Black Friday and Cyber Monday have entered the “shopping calendar” in many countries. Discounts not only ensure higher sales conversion but also attract new customers and retain existing ones.
In the face of increasing competition and unstable economic conditions, the key is to stand out from the crowd. “Well-thought-out discounts” are an excellent way to achieve this. Brands that are already applying this strategy are seeing positive results almost immediately.
Corporate Discount Portals: A Powerful Channel for Your Discount Strategies
One of the biggest changes in the e-commerce landscape has been the expansion and diversification of sales channels. Corporate Discount Portals or Clubs have emerged as powerful platforms to promote discounts. But what are they, and how do they work?
This might be an unfamiliar sales channel for many brands, but it has already caught the attention of major brands and those with an existing Affiliate Program. A Corporate Discount Portal is an exclusive, effective, and highly valuable sales channel.
Imagine working for a company and, simply by being part of that organisation, having access to a platform with products and services at discounted prices. These platforms allow companies to offer more added value to their staff. This is part of a very successful strategy to attract and retain talent, two of the main challenges facing HR departments.
Years ago, many companies, especially larger ones, began negotiating agreements with brands to secure exclusive discounts for their employees. Initially, they used the typical PDF or Excel file with a list of stores or brands where employees could shop at a discount. But in recent years, with the emergence of platforms such as Vip District, these companies now have their own “Corporate Discount Club”: a customised, professional and high-tech platform and app.
Creating an Employee Discount or Savings club has now become a reality for companies of all sizes across Europe. Companies from different sectors and sizes including AXA, Indra, Teleperformance, Randstad, Melià Hotels and DHL among others, already have their employee discount clubs. And in this privileged environment, brands, especially e-commerce ones, develop their discount strategy by offering their products to millions of highly qualified consumers.
Advantages of Promoting Discounts in Premium and Restricted Environments
Your discount strategies should avoid focusing solely on massive discounts. Here are the main advantages of promoting yourself in more exclusive environments, such as in a Corporate Discount Club:
- Avoid Cannibalisation: A premium or restricted environment, such as a corporate sales channel, can avoid the cannibalisation of your discounts and make it easier for you to segment them more effectively. The offers you make available in a private environment, such as in a corporate channel, can be different or better to those in an environment which is open to the general public.
- Monitor Performance: Environments like corporate agreements allow brands to maintain some control over who sees and takes advantage of the discounts. These channels enable management to be carried out closely with the brand. Many platforms offer various mechanisms to measure and control conversions, especially for e-commerce. The most common method is the use of promotional codes or specific URLs. Corporate discount platforms, such as Vip District even offer reports and dashboards for brands to monitor the profitability of their advertising campaigns on the channel.
- Attract Loyal Customers with Purchasing Power: These environments are usually made up of consumers with regular income. Being able to shop with preferential conditions makes them more likely to be loyal to a brand. This combination amplifies the long-term positive impact of your discount strategy.
- Get the Best References: Another very relevant aspect is recommendation. Employees access these discounts as a benefit from their company, meaning they are brands recommended by their employer. Just like recommendations from friends and family, a recommendation from the company adds security and trust to the purchase. Additionally, companies promote the recurring use of their corporate discount clubs internally. This adds value to being part of the company and strengthens the bond with employees, thereby impacting employee turnover rates positively.
- Speed Up Word of Mouth: In a smaller, more intimate environment, word of mouth, besides trust, gains speed as well as reliability. With exclusive offers limited to the employee group, colleagues often recommend deals to each other, with a: “Have you seen this offer?”. Having noticed this, we have made sure our platform facilitates spreading the word, by incorporating various channels and a “Call to Action” feature thereby encouraging users to share the shopping experiences they have enjoyed with each other.
- Take Your Brand to Each Employee: In order to increase brand exposure, many platforms offer advertising plans in addition to providing a strong presence. At Vip District, we offer a communication plan with segmented, thematic, and intelligent newsletters that reach each registered employee. Offer suggestions can be tailored to the consumer profile, location, and other criteria via an algorithm that ensures brand exposure to the best consumers. The plan also ensures that companies provide relevant and interesting information to their employees.
Corporate discount club newsletters have an average open rate of 30% to 40%, much higher than any traditional email marketing campaign. This is due to the above mentioned recommendation factor. The sender of each communication is the company’s own discount club. The employee receives an email from “BeSmart Savings Club” (for example), and not from brand A or B. Additionally, they receive it in their corporate email inbox (which they access an average of 20 times a day)… or via app notifications.
- Foster Loyalty, Strengthen Relationships: Corporate Discount Clubs are guaranteed to encourage loyalty. Employees access their discount club knowing there are long-term discounts that “will always be there for them”. It’s not about offering a site with aggressive, short-term discounts. The strategy is not built on scarcity but on consistency and presence. Employees start making their regular purchases via the platform and then repeat purchases. Vip District’s platform, for example, has a wide catalogue of essential brands, leading users to access the platform regularly.
- Put the Spotlight on What Matters Most to You: In channels with restricted access, brands can create and/or highlight offers and conditions that interest them the most. Flexibility ranges from the preferred promotion channel (online, physical store, purchase via phone or form, direct sale of specific products, etc.) to the conditions offered. The discount percentage can vary according to product category, purchase volume, etc. Or the discount can be linked to the membership programmes of already registered customers.
- Provide Support: Corporate discount clubs usually have a Customer Care department. This not only facilitates the use and understanding of offers but also manages incidents. This additional support ensures the best experience for both the user and the brand.
Well-Thought-Out Discount Strategies with a Long-Lasting Impact
Discount strategies are not just a short-term tactic; they are strategies that, if well implemented and implemented via the right channels, can lead to sustainable benefits. In a highly competitive market, where consumer behaviour is constantly changing, choosing the right channel for your promotions can be the differentiator your e-commerce needs.
Carefully chosen corporate channels combined with well-thought-out discount strategies will not only attract more customers, but will also build customer loyalty, thus consolidating your position in the market.
If you haven’t experimented with these channels yet, it’s about time you did!
