Creating effective discounts is an art that helps businesses attract customers, increase sales, and enhance customer loyalty. Here are seven best practices with examples that can help you make the most out of your discounts and promotions.

1. Set Minimum Purchase Requirements

To ensure that discounts drive higher order values, set a minimum purchase requirement for your discounts. This helps increase the average order value while still providing an incentive for customers.

• Example: Offer a 15% discount on all orders above $50. This encourages customers to add more items to their cart to meet the threshold, resulting in higher sales revenue.

2. Target Discounts Based on Customer Loyalty

Using discounts to reward customer loyalty can help improve retention and foster long-term relationships. Offering special discounts to loyal customers can make them feel valued and appreciated.

• Example: Provide a 20% discount to customers with a "Level 1" as a reward for their continued support. This can motivate customers to stay loyal and strive to reach the next loyalty level.

3. Use Time-Limited Discounts to Create Urgency

Creating urgency with time-limited discounts encourages customers to act quickly. This helps create a sense of scarcity, making customers feel like they shouldn't miss out on the offer.

• Example: Run a "Weekend Special" discount of 10% off all delivery orders placed between Friday and Sunday. The limited time frame encourages customers to place their orders during the promotion period.

4. Utilize Coupons for Specific Products

Offering discounts on specific products allows you to control which items receive promotions, helping you move inventory strategically or promote new items. Coupons are an effective way to target promotions to specific products.

• Example: Provide a coupon for $5 off the new "Signature Burger" for the first week after its launch. This helps draw attention to new menu items and encourages customers to try them.

5. Schedule Discounts for Off-Peak Hours

Discounts can be used to encourage orders during slower business hours. This helps balance demand, making operations more efficient and increasing sales during off-peak periods.

• Example: Offer a "Lunch Hour Special" with 10% off all orders placed between 11 AM and 1 PM. This encourages customers to order during lunchtime and helps fill in the typically slower hours of the day.