Offering discounts is one of the most effective ways to engage and retain email subscribers, but some brands are better than others at persuading prospects to act.
How discount emails are presented has a major impact on conversions. Copy, design, and the details of the offer itself can all influence whether a recipient engages with your email or decides to ignore your message. So why are some email discounts more attractive than others? And what can businesses do to maximize conversions?
If you’re using discounts in emails, but your conversions are low, here are 15 techniques using psychology to inspire potential customers and increase conversion rates:
1. Explain Why You’re Offering a Discount
Many consumers are naturally suspicious of discounts. If they don’t fully trust a brand, they might question why a product is being offered at a reduced price. To allay fears and build trust, give a reason for the discount, however insignificant it seems. For example:
- You’re having an end-of-season clearance.
- Your transport costs have been reduced.
- It’s the email subscriber’s birthday.
- The email subscriber just signed up to your list.
- The email subscriber signed up one year ago.
2. Gradually Decrease Discounts
Steadily decreasing a discount over a number of days has been shown to increase conversions. For example, sellers can start by offering a 50 percent discount on day one, reduce it to 40 percent on day two, reduce it to 30 percent on day three, and then return it to the usual price on day four. Studies have revealed that this approach brings higher revenue and increases a consumer’s willingness to pay.
3. Emphasize People’s Freedom to Choose
In one study, researchers asked people on the street to donate money to a certain cause. When they asked for money and added the phrase, “…but you’re free to accept or refuse,” more people donated money, and the average size of the donation increased.
When offering discounts, in the copy around the call-to-action (CTA), try emphasizing freedom of choice. For example: “This offer ends today, but you’re free to take a rain check.” Or: “The discount code expires tomorrow, but it’s your call.”
4. Appeal to the Ego
Most marketers harness the power of personalization. Using a recipient’s first name in an email subject line has been shown to boost open rates by 29 percent. However, you can take it a step further by incorporating the reader’s name in the email header and in the copy around your discount offer. When someone sees or hears their own name, certain brain regions become activated, which means people give more attention to the message and ultimately trust the message more.
5. Place the Larger Number on the Left When Comparing Prices
When showing the original price next to the discount price, position the larger, original price on the left and the discount price on the right. This makes the price difference seem larger because people can subtract the numbers more easily. It’s known as the “subtraction principle,” which also works when displaying prices vertically. In this case, place the discount price below the original price.
6. Use a More Vibrant Color for the Sale Price
If you display your original price in black, use red or blue for the sale price. The visible difference in colors helps to convince readers of the authenticity of the discount. Also, if your target audience is mostly men, try showing the discounted price in red. According to research, male consumers perceive greater savings when prices are presented in red as opposed to black.
7. Choose Prices With Fewer Syllables
Prices appear to be cheaper when there are fewer syllables. For example:
- $27.62 contains seven syllables (twenty-seven sixty-two).
- $28.12 contains four syllables (twenty-eight twelve).
Even though $28.12 is a higher price, it feels smaller because it sounds shorter when people read it.
8. Include Any High Number Alongside the Discount Price
When people see a discount price next to another high number, it makes the actual price figure of the discount seem cheaper. It doesn’t even have to be another number indicating a price; the effect works with any high number. For example: “Join 1,400 happy customers.”
9. Use the Discount Percentage Figure for Items Under $100
When the price of an item is under $100, emphasize the percentage saving, not the dollar saving. For example, 20 percent off a $75 item sounds larger than $15 off, even though the savings are exactly the same. According to research from marketing professor Jonah Berger, a percentage discount is more appealing to consumers. However, if the item is above $100, a dollar discount sounds more attractive.
10. Use Charm Pricing and Odd Numbers
Most marketers are familiar with charm pricing, where one or more cents are removed from the rounded dollar price of an item. For example, $3 becomes $2.99, and customers feel the item is cheaper because they remember the 2, not the 3.
Various studies have also revealed that people are attracted to odd pricing. In one study, subjects that were asked to make selections from a menu were more likely to choose odd-priced items. For example, an item at $9.00 was more popular when it was priced at $8.95.
An exception to the rule is if you’re selling premium products to people who are willing to pay for quality. In this case, even prices and round numbers help to maintain the perception of luxury. For example, $1,400 looks better than $1,399.
11. Use Personal Pronouns
Inserting personal pronouns such as “you,” “your,” “we,” and “our” make messages sound less robotic and more friendly. In copy around the CTA, use personal pronouns to help readers identify with your brand and boost engagement. For example: “We just lowered the price on all our summer dresses.”
12. Offer Discounts Toward the End of the Month
Generally, consumers are more careful with their finances toward the end of each month, because they have less money left in the monthly budget. This is why it’s worth experimenting with the timing of discounts. If your potential customers are already trying to save money near the end of the month, offering a discount at this time can go down well.
13. Use Action Verbs on CTA Buttons
An action verb is a word that describes what a person or thing does. To make CTAs more compelling and persuasive, add action verbs to the copy. These words also make it clear what you want people to do. For example:
- Claim my 20% discount.
- Get $10 off today.
- View offer details.
- Buy now!
What’s more, use urgent language around CTAs to tap into people’s fear of missing out. For example: “Limited offer,” “Act now,” or “Soon to expire.”
14. Highlight The Expiry Date or Duration of the Discount
Another way to create a sense of urgency is by using dates in email subject lines. For example: “20% off sale ends on August 7th. Don’t miss out!” Alternatively, highlight the number of days remaining in a sale. For example: “Only 3 days to go in our summer sale.”
15. Use Emotional Language Next to CTA Buttons
Like urgent language, emotional language attracts attention and inspires readers to take action. Consider placing more emotional words around CTA buttons, such as “celebrate,” “save,” “join,” “deal,” and “invite-only.” Also, use words that emphasize the benefits that users will experience when using your product or service.
Wrapping Up
Offering discounts via email can be a great way to capture the attention of subscribers and boost sales. However, it’s not as simple as constantly slashing prices. On the one hand, you want to drive engagement and build customer loyalty. On the other hand, you don’t want to cheapen your brand and annoy subscribers by offering too many discounts.
When offering discounts, test different prices, copy, and email frequencies, and track the results. And continually listen to customer feedback to work out what your audience values the most. By using a combination of careful pricing, persuasive copy, thoughtful design, and good timing, you can maximize conversions and support the growth of your business for years to come.
Read also: How to Reduce Subscriber Churn: 9 Strategies to Boost Email Marketing Results