Discounts and promotions are powerful tools in e-commerce marketing, driving both customer acquisition and retention. They create a sense of urgency and exclusivity, encouraging potential buyers to act quickly. Limited-time offers, flash sales, or seasonal discounts tap into consumers' fear of missing out (FOMO), boosting sales and website traffic.
Promotions also help attract new customers by reducing the barrier to entry, making it easier for them to try your products. For existing customers, they reinforce loyalty, as shoppers often return to brands offering consistent value.
Moreover, discounts can increase average order value when paired with strategies like “Buy One Get One” (BOGO) or tiered pricing. They also generate word-of-mouth buzz, especially if shared on social media.
However, overusing discounts can devalue your brand. It’s essential to strike a balance by aligning promotions with your long-term goals, ensuring they enhance profitability without undermining brand perception.