Well-executed discount campaigns attract new customers, increase the loyalty of existing customers, and grow business profits. There is hardly any business, either in the B2C or B2B sector, that doesn’t offer discounts on their products or services every once in a while. Most businesses offer discounts because it can help them sell off-season stock, raise profits, and improve customer satisfaction at the same time. I mean, who doesn’t love it when they snag something they’ve been after for a lower price?
However, sometimes there are no discounts available, and that’s where it can get tricky. Dealing with discount negotiations is challenging for both consumers who request discounts and sales/customer service teams that need to satisfy their customers’ expectations without destroying their business’s profit margins.
In this article, we’re going to discuss:
What businesses need to take into account before offering discounts.
What is a discount offer email and why is it important.
How to write your own discount offer email.
Discount offer email templates.
Tips for consumers that want to ask for a discount.
Discount request email templates.
Tips for businesses that need to respond to discount requests.
Discount request-response email templates.
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Based on the stage your business is in, the number of customers you have, the types of products you offer, and your pricing strategy– discounts can be a massive source of ROI or alternatively, create losses that will eventually impact your bottom line negatively. Here are some of the most critical things you need to keep in mind before launching any discount offers.
Evaluate your profit margins
While offering 50% off certain items may seem attractive, you need to be sure you always have a profitable margin, otherwise, you may end up losing money with your discount offer strategy. Crunch the numbers before launching any type of discount campaign to determine what you can comfortably afford to offer your customers while still making a profit from each sale.
Image courtesy of EDUCBA
Take higher customer acquisition costs into account
Offering discounts can be a surefire way to attract new customers, however, it will also affect your typical customer acquisition costs. To get the maximum value from your discount campaigns, make sure to convert new customers into loyal buyers by nurturing your relationship with them. Doing so will increase their lifetime value and justify the higher customer acquisition cost.
Image courtesy of Top News In World
Make sure your discounts will attract your target audience
Before running any sales campaign in an effort to gain new customers, consider whether your discounts will actually attract the type of customers you really want. Remember that big discounts are likely to attract deal shoppers, meaning your newly attracted buyers aren’t going to convert into long-term customers in the future.
Beware of the possible negative impact on your brand
While sales discounts can be an effective means of generating quick revenue, make sure you’ve carefully considered all the risks and potentially disastrous pitfalls. Consumers can get used to price reductions quickly and many won’t stick around when your prices go back to normal or increase. Besides, discounts may project your own lack of confidence in your brand and establish a lower perceived value for your products.
Consider offering discounts to specific customer groups
Offering discounts to everyone can be a huge risk to your overall profit margin. Consider offering exclusive discounts to specific customer groups instead (like students, healthcare workers, military, etc.). In this manner, you can leverage discounts and grow your customer base without hurting your margins or diminishing your brand value.
Think about how you’ll demonstrate product value once the discount ends
Even though your marketing efforts strive to convince customers and prospects that your product is helpful and will improve their life – discounts can often undermine your product’s value. That is why you need to think about how you will demonstrate your product’s value and retain your customers once the discount is over.
“Apple is a brand built on newness and urgency, so while their products never go on sale, you can get a discount for trade-ins or upgrades which keeps customers loyal.”
What is a discount offer email? Why is it important for your business?
As the name suggests, a discount offer email is used to inform your customers about a special discount. It can be a general discount for all items in your store, as well as a coupon or a discount code that’s available to use at checkout. Offering discounts is a common practice that’s used by all businesses because it brings in real results. Here’s a handful of statistics that support this statement:
The vast majority of customers (93%) use discount codes throughout the year.
When asked about the previous week, 60% of consumers claim that they’ve used a discount code during that time.
Three-quarters of all customers claim that they deliberately look through their inbox in search of discount codes.
Interestingly enough, there is neuropsychological research to prove that coupons make customers happier. A study from the Claremont Graduate University has shown that receiving a 10% voucher can increase oxytocin levels by up to 38%, and participants who have received coupons were also 11% happier and felt more relaxed.
So, how can you implement discount codes into your marketing strategy? The easiest way is through email campaigns.
Tips for writing effective discount offer emails
Starting from a blank page can be daunting and frustrating. To help you out, we’ve created a list of tips to keep in mind when writing discount offer emails. If you still don’t feel like writing your own discount emails, scroll down and copy and paste our ready-to-use discount offer email templates.
Choose the right tone: Be sure to keep a consistent tone in all of your emails. If all your messaging has a formal tone, your customers might be surprised (if not offended!) when they receive a more laid-back message out of the blue.
Be concise: Get to the point quickly. Your customers have limited attention spans and their time is precious. An effective email should be easy to scan and make it easy to find the main information (the discount offer/code).
Focus on the value: Keep your email focused on the value you’re providing for the user – which is the discount code.
Leverage urgency: Include the end date for your offer. This will evoke the feeling of urgency and encourage your customers to act fast.
Automate your discount emails by creating LiveAgent email templates
Discount offer email templates
Formal discount offer email
Subject line ideas:
X% off – find your discount code inside
Special offer: X% off
Hello [name],
Thank you for being joining our subscription list! We’re thrilled to offer you a special discount on our [products]. Please use the code below at the checkout to activate your X% discount:
[code]
The discount offer is valid until [date].
Have a great day,
[name of the company/employee]
Casual discount offer email
Subject line ideas:
Don’t miss your X% off!
X% off – discount code inside!
Hi [name],
We’re so happy to have you on board! As a thank you, we’ve got a special X% discount just for you. Use [code].
The offer is valid until [date]. Hope you’ll enjoy it!
Best,
[name of the employee/company]
Industry-specific discount offer email templates
eCommerce discount email
Subject line ideas:
X% off on all items!
Today only: X% off on all items!
X% off your favorite [products]
Hi [name],
It’s a great time for shopping!
[time frame: e.g., Today only, Until July 24th], all items in the store are X% off!
Don’t hesitate – the best deals are selling out fast!
Just use the discount code below at checkout:
[code]
Happy shopping,
[company name]
SaaS (software as a service) discount email
Subject line ideas:
X% off all subscriptions!
Get X% off on all plans!
Hi [name],
Now you can get [product name] for X% off! Simply use the code below to get X% off your plan:
[code]
Please let me know if you need any assistance. Hope you like the deal!
Best,
[employee name, company]
Different types of discount offer email templates
General discount code email
Subject line ideas:
X% off everything!
X% off – get your discount code
Special discount code: X% off!
Hello [name],
We’ve got good news for you: a special discount code for our [products/services]! Please find it below:
[code]
The code is valid until [date]. You can use it at the checkout!
Hope you enjoy it,
[employee name, company]
Discount code after signing up for a newsletter
Subject line ideas:
Welcome! Here’s your discount code:
Welcome to our newsletter + bonus…
Newsletter + a special discount!
Hello [name],
Welcome to the [company name] newsletter!
To get started, we’ve got a little gift for you – a special discount code for our [products/services]:
[code]
Feel free to use it at the checkout. Hope you enjoy it!
Talk to you soon,
[company name] team
Limited time offer email
Subject line ideas:
X% off – limited time offer!
X% off, this week only!
Limited time offer: get X% off!
Hi [name],
Have you heard of our limited-time offer yet? Only until [date], you can get X% off all [products/services]!
Don’t hesitate, as the best deals are selling out fast. Remember to use this discount code at the checkout:
[code]
Enjoy!
[company name] Team
How to ask for a discount: 10 tips for consumers
There can be a variety of reasons why you might need or desire to get a lower price than proposed. Besides, everyone loves the potential savings and the feel-good factor of bargaining your way to a sweeter deal. More often than not, you can ask for a special price for just about anything and get it if you know how and when to ask. Let’s go over some tips that might help you get discounted prices from retailers, vendors, and service providers.
Do your research: Doing a little online research is always a helpful thing to do before you start bargaining. It will give you a better understanding of what you want, what competitors are currently offering, what a reasonable price would be and what you can leverage to persuade a seller/vendor to give you a discounted price.
Know when to ask: Remember that there are certain times – like the end of the day, the end of the month, the end of the financial year, or after the holidays – when you have a higher chance of getting a discount since salespeople are keen to strike last-minute deals to meet their sales targets.
Ask the right questions: When negotiating discounts, certain phrases, and questions can help you achieve the desired outcome. Some good examples are: “All I have in my budget is X”, and ‘I’ll give you X if we can close this deal now”, or “Is that the best you can do?”
Talk to the right person: There is no point in trying to negotiate with someone who simply cannot authorize a discount. If you find out the person you’re speaking to cannot offer you a discounted price, reach out to the decision-maker such as a manager, that has the power to authorize a discount.
Give them a solid reason: This one works particularly well in the case of B2B and SaaS businesses. Instead of simply demanding a discount, you can offer something valuable in return, such as writing a review, providing a referral, or being willing to showcase your business as a case study.
Take advantage of early payment discounts: In many industries providing early payment discounts is standard practice. Vendors can get paid sooner which accelerates cash flow and reduces the risk of late payment or nonpayment. That is why offering to pay early can be a great way to get discounts.
Mention a competitor’s lower price: Don’t be afraid to point out a competitor’s lower rate. Lots of companies are actually willing to provide discounts if you can prove their competitors are offering cheaper prices. A little research beforehand will tell you whether the retailer’s prices are reasonable.
DICK’S Sporting Goods price match statement
Go for extras: If you can’t get a desirable discount, think about what sort of extras would be relatively painless for the seller to offer you instead – free delivery, free installation, a free upgrade, etc. Very often businesses are already prepared to offer these perks since they are cheaper than lowering the price but still make the customer happy.
Keep a polite tone: Try to have a polite, respectful, and positive approach during the bargaining process. Nobody wants to help a rude and pushy person, but most vendors will want to help out a nice, friendly person in any way they can.
Be ready to walk away: Don’t be afraid to simply walk away if you are not getting the price you want. While it’s usually more expensive to attract new customers, companies may be willing to go the extra mile to retain existing customers, especially when they realize they are about to churn.
Happy customers are the best customers
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When it comes to asking for a discount from a business either as a prospect or as a loyal customer, there are two critical things to remember: have a polite, positive, and professional tone, and providing a good explanation as to why you cannot afford the quoted price (or why you believe accepting your discount request would be beneficial for both parties). Here are some examples of discount request templates that you can use:
Common discount inquiry email
Hello [NAME],
This is [YOUR NAME] from [COMPANY NAME].
We are seriously considering purchasing your product as we believe it’s the perfect solution for our company! But we’re a small business just starting out and right now there’s no way we can afford your pricing. Any chance you could give us a discount?
Looking forward to your thoughts on this.
Regards,
[YOUR SIGNATURE]
General discount request
Dear [NAME],
We are happy to be your loyal customer for the last 5 years and during this time we have always been pleased with the quality of [PRODUCT/ SERVICE] you supply and the level of customer service you provide.
Nonetheless, as our firms have done business together for so many years, and since we are currently experiencing certain financial difficulties, we would like to request a discount on future orders.
Looking forward to hearing your positive response. Thank you in advance.
Sincerely,
[YOUR SIGNATURE]
Specific discount request
Dear [NAME],
The past two years saw a marked increase in our purchases of your products. Besides, if you check our account, you will find that we have always been prompt in our payments.
In view of this would like to ask you for an additional 5% discount. With a better discount we are sure that we can increase our business volume even more – and that, we believe, is something beneficial to both of us.
We hope to hear from you soon regarding this proposal. If it is acceptable to you, please inform us soon as we are planning to place our next order by the end of the week.
Thank you,
[YOUR SIGNATURE]
Tips for responding to customer discount requests
No matter what products or services you offer, you’re likely to come across prospects or existing customers asking for discounts that you haven’t planned to provide. However, simply agreeing to provide a discount demonstrates that your product/ service isn’t worth your asking price and starts your customer relationship off on the wrong foot. Here are some tips on how you can effectively negotiate discount requests towards a win-win outcome and respond in a professional way:
Ask the prospect why paying the stated price is an issue for them to find out whether asking for a discount is a part of their standard negotiation strategy, or if they really cannot afford your product at the quoted price.
Acknowledge the request but move the conversation away from price by explaining how your product/ service offers more value than those of your competitors and by emphasizing your product’s benefits.
Deny the discount request but increase the value of the deal by providing some extra perks for the proposed price (e.g. free add-ons, extended warranty, free training, etc.)
Agree to a discount while altering the terms of the deal (such as increasing the order size, changing the scope of the order, lengthening the contract, etc.)
Agree to provide a discount only if you are receiving an obvious benefit in return (longer contract, large down payment, case study, referral, review, etc.)
If you are prepared to offer a discount, ask what they feel would be an appropriate discount and see if their request is reasonable and acceptable to your business.
If you cannot satisfy a customer’s request and cannot offer a discount, make sure to explain why your pricing is justified and why that’s your company’s policy.
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Use the following email templates as guides whenever you need to reply to customers asking for a discount.
Negotiating a discount request #1
Hello [PROSPECT NAME],
I appreciate you asking about discounted pricing. Can I ask why you’re seeking a discount? I’d love to learn a little more about your budget and understand if I can explain the value of our solution further.
We could schedule a quick call this week, if you’d like. Feel free to book some time on my calendar here: [calendar link]
Regards,
[YOUR SIGNATURE]
Negotiating a discount request #2
Hello [PROSPECT NAME],
I appreciate your question. Before we talk about discounting, I’d love to find out a little more about the pain points and priorities of your company to ensure I can make the best recommendation on how we can help.
Would you be open for a quick call next week? Let me know when you’re available.
Best,
[YOUR SIGNATURE]
Rejecting a discount request #1
Hi [PROSPECT NAME],
Thank you for contacting us. I appreciate your interest in our product, but unfortunately we won’t be able to give you that discount. I understand your position, but our priority is being valuable. It wouldn’t be fair to offer you a discount while the rest of our users pay full price.
If you ever change your mind, we’d love to have you as a customer. Until then, I can recommend you a few affordable alternatives. Please let me know if you’d like that.
Regards,
[YOUR SIGNATURE]
Rejecting a discount request #2
Hi [NAME],
Thank you for contacting us! I am very sorry, but we won’t be able to honor your discount request. Unfortunately, our promo ended over a month ago, so the 50% off coupon code you provided has already expired and is no longer active in our system. Our coupons are typically valid for 30 days after they are issued.
However, you can find our future promotions on our website at [link]. You are also welcome to join our mailing list to receive latest deals and special offers. Please, let me know if you would like me to add your email to our list.
Best regards,[YOUR SIGNATURE]
Accepting a discount request #1
Hi [NAME],
We appreciate your request and we perfectly understand your need to save a little money in this economy.
Since you’ve been our customer for almost two years by now, we’re willing to offer you an additional 10% discount on your annual subscription in exchange for a case study that will be published on our website and show how your business benefits from using our product.
Please let us know if that works for you. Thank you!
Best,[YOUR SIGNATURE]
Accepting a discount request #2
Hello [NAME],
We appreciate your request and your interest in using our service. After having discussed with my colleagues, we decided that we could provide you with a 15% discont, if you agree to pay a year’s worth upfront.
Does it sound like something you would be willing to do? Looking forward to your response.
Regards,
[YOUR SIGNATURE]
Frequently asked questions
Should I send a discount offer to all of my contacts?
It depends on your overall strategy. You can either send a discount offer to all of your clients or address this communication to an exclusive group such as unengaged potential customers. If you decide to do the latter, then make sure that contacts who aren’t included in the offer won’t find out about it.
Should I inform recipients of a discount offer email about the exact reduced product/service price?
Usually, companies inform their potential customers about the size of a discount in terms of a percentage, or they present a before and after price. You could also include a link to your pricing and provide all relevant information there. Invest some time in A/B tests by sending two different emails to the same group of clients and check which one drives better results.
Which is better, a simple email or a visually attractive message?
Discount email templates aim to attract attention and convince a recipient to take a certain action. That’s why sending a well-designed, visually attractive email will probably get better results than a plain text message. If you Google “discount email” you’ll find many examples, all of which are colorful and flashy with big reductions. It’s best to follow this path.
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