Discounts make customers happy in short term, but don’t in long term because price reduction creates confusion about the real value of the product and consequently lowers its reputation.
Just as children who receive many toys are not happy, customers who are spoiled with discounts and offers are not satisfied. This applies to both B2B and B2C.
Understand the needs of your customer!
You must understand the needs of your customer, not just give in to their requests! When we decide to apply a discount or special offer, we must be sure that we are doing it for a strategic reason. The discount should not be used as the predominant incentive for purchase.
Identify the needs behind the requests It is necessary to identify the needs behind the requests. In my consulting services, I help Marketing & Sales Business Units to derive the needs that determine the behavior of the Target from statistical data. The output determines having a clear compass of the target’s needs, which result in requests that are unconsciously unrelated to the need.
Avoid unnecessary discount temptations
The need for a discount is, in fact, a manifest request linked to a latent need. It is therefore necessary to have the tools to respond to needs. Avoid unnecessary discount temptations.
Value the customer’s need
Do not give in to the temptation to offer discounts, but rather value the customer’s need and offer them an adequate solution. Customers will appreciate this response to their needs much more than a temporary discount.
Frequently asked questions
Should a company give discounts to keep customers satisfied?
Not as a habit. Discounts make customers happy in the short term but not in the long term, because a price reduction creates confusion about the real value of the product and lowers its reputation. Just as children who receive many toys are not happy, customers spoiled with discounts are not satisfied, in B2B as in B2C.
When is it right to apply a discount or special offer?
Only when you are sure you are doing it for a strategic reason. The discount should never become the predominant incentive for purchase: you must understand the needs of your customer instead of simply giving in to their requests.
What lies behind a customer’s request for a discount?
A discount request is a manifest request linked to a latent need. In my consulting I help Marketing and Sales units derive from statistical data the needs that drive the target’s behaviour, so the company can value that need and offer an adequate solution, which customers appreciate much more than a temporary discount.
