Once you have an end goal can you decide exactly how you\u2019re going\nto approach discounting.<\/p>\n\n\n\n

If your aim is to increase profit, calculate how many extra units\nyou\u2019d have to sell at a discounted price to hit your goal. Make sure the\nexpected influx in unit sales as a result of the discount offsets the markdown,\notherwise you\u2019ll end up reducing revenue. Track profits closely to make sure\nyour discount is accomplishing what it set out to do.<\/p>\n\n\n\n

Discounts can also help merchants move leftover merchandise. In\nthis case, the goal is to sell as many units as possible so you\u2019re not eating\nthe costs of harboring unsold product. You\u2019ll measure units sold to gauge the result\nof your efforts here.<\/p>\n\n\n\n

Sometimes a discount is all a potential customer needs to buy from\nyour store. In this way, advertising a special low price is a good way to get\ncustomers in the door. To quantify the success of your promotions in this\narena, pay attention to changes in customer acquisition metrics.<\/p>\n\n\n\n

When you clearly define your goal, you\u2019ll have a yardstick against\nwhich to measure the success of a given discount.<\/p>\n\n\n\n

Motivate\nShoppers with Referral Discounts<\/strong><\/p>\n\n\n\n