fbpx

How to create a successful Discount Strategy:

 

At Flipdish, our online ordering platform has fully integrated restaurant marketing tools that focus on increasing your sales and inspiring customer loyalty. Some of the most powerful tools offered by Flipdish are the customisable discounts, voucher codes and rewards, created to encourage your customers to reorder regularly.

Business owners are constantly faced with the challenge of customer acquisition and retention. Questions on how best to capture the attention of potential consumers and encourage them to spend are common. The biggest misconceptions regarding sales promotions are the constant need to offer crazy discounts and incentives in order to drive sales conversions. In this article, Flipdish shall unveil the industry secrets to successful discounting strategies.

 

How do discounts work?

Discounts and promotions entice people to view your restaurant and takeaway menus. They provide an extra incentive for customers contemplating ordering from your business. A discount can often be the deciding factor before a consumer checks-out. Effective discounting not only helps to increase customer acquisition and drive customer loyalty, it also motivates greater expenditure and impulse buys. Consider an offer for free delivery and two complimentary drinks when you spend over €25. A customer will instantly scour the menu listings to see if their order will amount to that €25 benchmark. If their total is below this amount they will most likely add to their basket to avail of the offer and avoid the FOMO- Fear Of Missing Out.

Most discounts work on the principle of urgency, as they are only available for a specific period of time. If people don’t buy the product NOW, at the discounted price, they’re likely to miss out. The most common promotional tools used by businesses are:

  • Loyalty Cards.
  • Minimum Order Value.
  • Abandoned Cart Emails.
  • Referrals.
  • BOGOF- Buy One Get One Free.
  • Specific Category or Product Discounts.
  • Subscriber or Email Sign-up Offers.
  • Free Delivery.
  • Free Gifts.

 

Are promotions necessary?

Commercial messages pervade our daily lives, they are inescapable. Consumers have adapted to being targeted regularly and can filter out the unwanted messages. With thousands of advertising campaigns appearing across billboards, buses, window displays, television screens and mobile devices, it can be hard for a business to stand out from the crowd. If consumers are so aware of a businesses marketing efforts, why bother with promotions?

Well, you wouldn’t let someone walk through the front door of your restaurant without engaging them in some manner. Same rules apply.

 

Some basic reasons to run promotions are:

 

#1 To Help Move Stock.

At certain times of the year you may notice changes in the products and menu items that are selling out the quickest and those that may be stagnating. Although keeping up with customer tastes and demands is important, you don’t need to let extra stock go to waste. Start a new flavour trend or push a menu item under a new name. Keep your ingredients moving and keep people’s taste-buds guessing. People love to be first to try new specials!

 

#2 To Achieve Sales Goals.

It goes without saying that every restaurant and takeaway has sales goals and targets to reach weekly, fortnightly and monthly. Your business needs to be aware of niche market opportunities which can result in a surge of sales and new customers. For example, if you are based near universities and want to drive sales for the month of September you may consider running a deal for incoming students. Students constitute a large portion of midweek orders and your restaurant could end up being their go-to from the get-go.

 

#3 To Beat Competition at Peak Times.

By using the automated marketing tools on your Flipdish ordering platform you can encourage customers to order from your restaurant routinely without being listed among your competitors on third-party aggregators. Personalised incentives available from your own website and app gives your business the edge over your competitors.

 

#4 To Build Good Relations with Customers.

Keep your customers loyal and happy with customisable discount codes and vouchers. Return customers spend on average 120% more over the course of a year. Retargeted promotions are effective because they’re only shown to people who have been on your site before and will feel like a reward for doing business with you!

 

How to implement your discounting strategy.

Choose a clear goal for every campaign and offer.  According to Yoast, people prefer to get twice as much of one product (e.g. buy one main course get one free), rather than being offered to save 50% off the price of the exact same products. So, even though the overall value amounts to the same, psychologically the former emphasises a larger gain.

November and December drive nearly ¼ of all e-commerce revenue what with Black Friday, Cyber Monday and the Holiday season rolling in. Although these are the key dates for targeting customers, almost the entire year is sprinkled with national, commemorative and ultimately, commercial holidays: think Valentine’s day, Halloween, Mother’s Day, Easter, etc. These dates can provide a good opportunity for your business to promote itself as there may be less competition around these times.

 

If you are seeking to drive traffic to your app or website you may use exclusive online orders or provide exclusive codes through your social media sites. Alternately, coupons for in-store purchases could be created to fill tables at your venue. Online offers are quick and easy to implement at Flipdish.

If you wish to find out more about what Flipdish can do for you, click on the links below!

Take a look at some of our social media below!

 

Have questions for us? Contact our Customer Success Team on [email protected]

Need help growing your online orders?

Contact Us Now

More information about online ordering

Request More Info