The psychology behind discounts and how it can benefit your business

Smart deals make buyers feel smarter

Many customers are motivated to purchase at a discounted price, even if it wasn't initially part of their plans. In fact a whopping 93% of US consumers consider discounts to be a smart move and a crucial factor influencing their purchase decisions.

Pairing original and discounted prices is a powerful image

The visual representation of the crossed-out original price and a new, lower price is common in both offline and online environments. This is how the value of the product or service is now displayed in the case of all discounts. 

This method is effective due to the phenomenon of psychological anchoring, according to which the original price plays a significant role in the buyer's assessment of value. 

Fear of missing out (FOMO) wins the game 

Originally associated with social media, the term has become a prevalent phenomenon in various real-life situations, including pricing strategies. FOMO-driven tactics, such as limited-time offers or displaying the number of people viewing or purchasing a product, create a sense of artificial "anxiety" in potential buyers, pushing them to make a positive decision to alleviate that feeling. 

How to implement discounted offers into your freelancing strategy?

Now that we explored coupons’ psychological effects that drive action, let’s see how you can leverage this information with the different tools Fiverr offers.

• Encourage buying multiple services: Encourage multiple purchases: Implement bulk discounts by offering a 5-20% discount when customers buy multiple services, thereby boosting sales and increasing customer loyalty while optimizing your cost per sale.
• Having a reason behind the coupons: In addition to business interests, you can offer coupons to potential customers for many other reasons. These can be periodical, seasonal opportunities, special events that are important in your industry, or even holidays that are significant in your or your buyer's country. The key is to have a well-defined reason behind the coupon, which makes your business more credible and the coupon more engaging.
• Thank you coupons: In generally quieter times, it's always a good idea to offer "thank you" coupons for your buyers. This could turn them into returning customers or encourage them to buy earlier than originally planned.
• Activate your old customers: Use Fiverr coupons to reactivate your previous customers. Offer them a coupon as an incentive to work with you again. There's a good chance that some of them will be interested.

Fiverr Seller Plus coupons tips & tricks

1. Reward recent buyers: Reward buyers who have recently ordered from you, as they will be more likely to remember how good your service was.
2. Select high-value buyers: Handpick your ideal buyers based on what matters most to you and your business. Reward those who have purchased continuous services, been big spenders, given you great ratings, or simply been a joy to work with by offering them exclusive coupons and special deals.
3. Custom Note: Use the "Custom Note" option to write a personalized message to the buyer. Explain why you are offering this discount and include a framework (e.g. Christmas coupon, loyalty appreciation, or even your annual anniversary on Fiverr).

Every freelancer and business situation is different, and the strategy required may differ from client to client. Always define why you're giving out the coupon and strategize which customers you want to target. 

Leverage the power of coupons to effortlessly attract customers, apply the psychological tactics outlined in this article, and seamlessly convert one-time buyers into loyal, repeat customers.