Digital dilemmas – Choosing between money off or percentage discounts?

Digital dilemmas - money off or percentage deals
British shoppers love a good deal and are always on the hunt for the latest bargain.
The word ‘SALE’ can spark a spending spree within minutes and eliminate all capability for rational thought when shopping, but when searching for the best offer to attract your customers, is there a tried-and-tested method to encourage customers to spend?
Research seems to suggest that the basic concept of spotting a good bargain is written in our DNA from an early age, with the ability for it to become addictive very quickly. Getting something far cheaper than its recommended price is a satisfying feeling, so why wouldn’t you share this feeling by making sure that everyone knows about it?
As a business you have perhaps flirted with various methods of showcasing offers, deals and discounts, which have all produced a variety of results.
The trick here is to entertain the idea that your customer is getting exceptional value for money through the choice of the right wording which suggests that they would be mad to pass up the opportunity.

So how can you create the perfect deal?

‘The rule of 100’
This rule states that offers for anything with an RRP under £100 should be labelled with a percentage deal and anything more than £100 should be presented with a money off discount.
For example…
A t-shirt with the RRP of £30 is more attractive to customers with a label for 20% off than a label reading £6 off.
Digital dilemmas - money off or percentage discounts
While the discount to the customer is the same, consumers are more likely to think that the percentage off is more attractive due to the higher numerical value, making them more likely to reach for their wallets.
The same example can be applied to a car with a price tag of £3,000, which, with a 20% discount is less appealing to a potential customer than a £3,000 car with £600 off.
Digital Dilemmas - money off or percentage deal
Our mind can play tricks on us, while such deals are exactly the same, we feel that one is giving us a better deal than the other. Combine these deals with adjectives such as ‘Exclusive’ and ‘Limited’ and you have the ingredients to get your punters excited.
Once you have decided on your chosen discount option the method of promotion should be the one that guarantees the biggest outreach.
Did you know that…
98% of all texts messages get read
91% of all adults have their phone within arms reach 24 hours a day, 7 days a week.
With mobile marketing you can reach your target audience with your deal directly, within seconds, guaranteeing that your message will get read by customers who are likely to have their phones with them at the time that you send it.
Choosing the right deal and having the right platform to showcase it go hand-in-hand, put your rule of 100 discount into your customers capable hands with mobile and text marketing.