1. First-time customer discount

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4. Over-discounting
The microeconomic principle of price elasticity states that when a product’s price goes down, the demand goes up. This is why discounting can lead to higher sales—there’s more demand for the lower-priced product.

However, this is only true up to a certain point.

Once your discount becomes too large, there won’t be any additional increase in demand (i.e. the demand for your product will plateau).

10 types of discounts
The four dangers discussed above don’t mean you should avoid offering discounts, but it’s important to manage these risks with a smart discount pricing strategy.

Here, we’ll discuss 10 types of discounts and how they can benefit your online store.

Offering a generic discount (like 10% off) to first-time customers is the most popular type of discount.

You can require new visitors to subscribe france email list to your newsletter list to access the discount. Once they convert and sign up, you successfully gain a new lead and potential customer.

Marketers usually display first-time customer discounts on a welcome popup, but showing the offer to cart abandoners as well can reinforce the message.

Check out how The Oodie uses a welcome popup to promote its discount for new customers.