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Discounts: The D2C Engine For Growth
Discounts are the lifeblood of D2C. They fuel sales growth, attract new
customers, and foster loyalty. In a competitive online landscape like
India’s, offering strategic discounts can be the key to unlocking
success, drawing customers in, and keeping them coming back for
more.
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Discounts: The Fuel That D2C Brands Needs
Offering discounts to customers in India provides several advantages to a D2C brand.
Discounts are a powerful tool to entice new Discounts stimulate sales by creating a sense of
customers to try out an D2C brand. Many consumers urgency and encouraging customers to make
are price-conscious and are more likely to make purchases. This can lead to increased revenue,
their first purchase when offered a discount. especially during special events or festive seasons.
In India's highly competitive D2C landscape, offering Offering exclusive discounts to loyal customers can
competitive discounts can differentiate a brand from foster long-term relationships. Loyalty programs with
its rivals and attract price-sensitive shoppers away discounts or cashback rewards can keep customers
from competitors. coming back for more.
Discounts: The Fuel That D2C Brands Needs
Offering discounts to customers in India provides several advantages to a D2C brand.
Offering tiered discounts (e.g., "Spend $100, get 10% off") Aggressive discounting can help D2C brands gain a
can encourage customers to add more items to their larger share of the market, especially if they can
carts to reach the discount threshold, thereby increasing sustainably offer better deals than their competitors.
the average order value.
India has a culture of celebrating various festivals, Discounts help D2C brands clear out excess or
and offering discounts during these times can align slow-moving inventory, preventing losses associated
with the local traditions, increasing sales during with unsold products and making room for new
festive seasons. merchandise.
Discounts: The Variation Basket
However, in each case, a discount must meet a contingent condition for it to correspond it to a certain outcome
Condition: The criteria that a shopping cart must qualify to be eligible to avail a discount
Outcome: The discount a customer actually gets post fulfilling the pre-defined condition
Discounts: The Must-Haves To Unlock High Conversions
GoKwik provides D2C brands with an extensive range of 200+ discounting configurations, strategically designed to enhance
customer engagement and drive higher conversion rates. We will now delve into eight key categories of discounts that exert
the most significant influence on sales performance.
Bundled discounts by GoKwik refer to an excellent pricing strategy wherein D2C brands can offer multiple products
together at a reduced combined price compared to purchasing each item individually. The discount approach has many
advantages.
Encourage Higher Purchases Help Clear Old & Dead Stock Increase Average Order Value
Promote Up-sells & Cross-sells Optimise Discount Burns Uplift Conversion Rate
Bundled discounts are quite prominently used by eCommerce categories like Beauty & Personal Care, Fashion, Jewellery, FMCG, and Home
Furnishing. The very nature of this discounting feature is that it allows brands to increase platform traffic by creating a sense of urgency and
excitement in the mind of shoppers. It also encourages higher sales with increased average order value, and repeat purchases.
Category 2: Free Gifts (The GoKwik Value Add)
In its essence, Free Gifts discounting feature by GoKwik has been designed to enable D2C brands to offer free, often
pre-defined gifts, to customers on each purchase. These gifts are an excellent means to incentivise larger purchases.
Example: "Buy 3 Men’s grooming products for INR 999/-, get a Example: "Buy 4 Skincare products; Get a Free Gift (Travel
shaving foam worth INR 200 free." Kit/Makeup Bag/Skin Moisturiser”
{Single Coupon Code Applicable Depending On Cart Value} {Single Coupon Code Applicable}
Condition 3: By X (Cart Value)
Outcome 3: Get a Free Gift
Condition 1: Pay via Prepaid Payment Mode Condition 2: Pay via Prepaid Payment Mode
Outcome 1: Get Y% Off Or Flat Amount Off Outcome 2 Get Y% or Flat Amount Cashback
Example: "Pay via UPI & Get 10% off,” “Pay via Wallet & Get INR Example: "Pay via UPI and Get 100/- Cashback," “Pay Via
20/- off" Wallet and Get 20% Cashback via Reward Points.”
Example: "Pay via UPI & Get 10% off upto INR 50/-,” “Pay via
Card & Get 20% off Upto INR 80/-."
Category 4: Gift Cards (The GoKwik Value Add)
Gift Card
Gift Cards: Unlocking Benefits
Gift cards can lead to higher revenue as customers Gift cards encourage repeat business and can foster
purchase them for themselves or as gifts for others. customer loyalty as recipients return to make purchases.
Easy Marketing
Customer Insights
Gift cards can serve as marketing tools, featuring the
Gift card purchases and redemptions provide valuable
store's branding and promotions, helping to attract new
data on customer behavior and preferences.
customers.
When customers use gift cards for purchases, it reduces Compared to physical gift cards, digital gift cards are
the likelihood of returns and refunds. cost-effective to produce and deliver.
Category 5: Loyalty & Reward Points (The GoKwik Value Add)
According to statistics, loyalty programs can contribute to about 20% of a company's profits. Meanwhile, shoppers who
redeem reward points spend about 3.4x more than other customers. Having said that, GoKwik has seamlessly partnered with
many leading Loyalty Point and Reward Point Apps, enabling D2C brands to give customers an opportunity to earn and burn
rewards while maximising value on each purchase.
● Merchant and/or GoKwik are subject to burns ● Reward Points are not brand specific/brand limited
Loyalty & Reward Points: Unlocking Benefits
Customer Feedback
Custom Loyalty Programs
Loyalty programs often open a feedback channel between the
Tailored loyalty programs can help cater specific preferences
brand and the customers, helping the former improve its
and behaviors of Indian customers and keep them intact.
offerings.
In India's competitive eCommerce landscape, offering loyalty points can serve as a strategic tool to build a strong customer
base, enhance customer satisfaction, and drive sustainable business growth.
● Disable cash-on-delivery
when a customer opts to earn
or burn loyalty points
Promote Up-sells & Cross-sells Help Clear Out Inventory Increase Average Order Value
Possible Conditions and Examples
Example: "Buy one pair of everyday slippers, get another pair Example: "Buy a Dress at Full Price, Get the Second Dress (of
for free." equal or lesser value) at 50% off."
Example: "Buy one hoodie and one pair of jeans, and get the Example: "Buy a laptop, and get 30% off any laptop bag."
lower-priced item at 50% off."
{Single Coupon Code Applicable}
{Single Coupon Code Applicable}
Example: "Purchase items worth INR 799/-, and Get Free Example: "Buy Beauty Products Worth INR 5999/-, and Get
Shipping on Your Entire Order" Noise Cancellation Headphones By Y Brand Free"
Example: "Get 20% off on all electronic items." Example: "Save INR 399/- on your purchase of INR 3999/-
or more."
{Single Coupon Code Applicable} {Single Coupon Code Applicable}
{Single Coupon Code Applicable Depending On Cart Value} {Single Coupon Code Applicable Depending On Cart
Value}
Condition 5: Buy X (Product/Category/Collection)
Outcome 5: Get Y% Off + Z Amount Off on Select Items
Example: "Enjoy 15% off your order, and get INR 15 off when you buy
any two T-shirts."
Percentage & absolute discounts enable D2C brands to tailor their discounts to
different products, customer behaviors, and marketing goals. By strategically
using both percentage and absolute discounts, brands can create appealing
and flexible promotions to attract and retain customers.
Category 8: Free Shipping
Free shipping is a kind of promotion that D2C brands can offer to entice customers by eliminating the cost of shipping
applicable on orders. These discounts can take various forms. Some possible Conditions are as follows.
Example: "Enjoy free shipping on all purchases, no minimum Example: "Buy products worth INR 500/- or more, and avail
order value required." free shipping."
Example: "Get Free Shipping on All Electronic Items." Example: "Gold members enjoy free shipping on all orders."
Free shipping helps D2C brands to alter their offerings to different types of customer segments and promotional strategies, and
ultimately enhance customer experience, average order value, and drive sales.
While That’s Just The Beginning…
We hope this playbook gives you an insight into how GoKwik’s Discounting Features can
help you, our partner merchants, leverage discounts to boost sales, average order
value, customer lifetime value, and enjoy a competitive edge in the market, always.