As a salesperson, it is tricky to make decisions and exercise them when it comes to discounting and compensating customers. Customers are the propellers driving a company's sales target to its destination. Keeping them satisfied with their purchases is thus integral to the success of a company. In order to do so, giving them great service or quality products is sometimes not enough.
This is where concepts like discounts and compensation step in.
In the sales industry, discounts and compensations play a significant role. Customers may not always feel satisfied with the deals decided by the company. Many of the target audiences are those who don't make a purchase on new releases but surely do so in the season of sales and discounts.
Compensation, on the other hand, relies on the policies of the company. In case of damage or unsatisfactory delivery of products or services in certain conditions, the company offers to compensate the customer. This helps build a stronger customer relationship and ultimately benefit the company through a loyal customer base that keeps coming back and maintains the company's average sales.
Discounting and compensation may be highly beneficial for any company, but many companies take advantage by doing it wrongly. To do it the right way is extremely important and thus the management handling sales aka sales representatives must focus on the following points to make discounting and compensation work.
Email subscription
Providing discounts and information on compensation to your email subscribers can make them feel special. Thus it is a great way to attract them not just with discounts but also with exclusivity.
Reward points
Rewards over the purchase of a certain amount can be another way of discounting that can bring in loyal customers.
Product
bundling
Bundling products together and putting reasonable discounts on them can prove to be a highly beneficial method of instigating sales.
Social media and influencer marketing
Social media marketing and influencer marketing is another way to bring in new customers if the links provided are coupled with discounts.
Offers designed to complete the purchase
Did you know 63% of filled carts in shopping malls don't reach the billing counter? Offers should be designed so strategically that this rate decreases and the sales pipeline should reach the conversion point.
Referral
offers
Referral offers are a win-win situation for both companies and the customer. Companies get new customers and increase sales via both, old and new customers.
Review offers
Customers who review your products and services should be rewarded via discounts as well. This is because they don't just make purchases but also add valuable feedback that can better the managerial decisions of a company. Discounting for reviews makes customers feel extremely valued.
Membership deals
Membership deals and discounts are the classic way for discounting and compensation. It is a proven method of successful discounting.
Designing the right compensation policies
When it comes to compensation, designing the right compensation policies is the most important step. Making the right decisions while making company policies are the way to go about it.
Feedback
forms on compensation
Feedback forms help to make policies for compensation a lot easier, accurate, and result-oriented and should thus be surely adopted.
Conclusion
Following these pointers while trying to work out discounting and compensation for your customers can help your annual turnover increase immensely.
It can be astonishing how a simple act of occasionally decreasing the selling price for your customers can increase the benefits two folds. Once these pointers are adopted by sales representatives, they are sure to prove beneficial for your next sales goals.
