Imagine you discount a product from $50 to $30.
How would you frame the discount? "$20 off" or "40% off"?
Would it change if the price was $150?
Today's Thursday Thread is dedicated to this question: How should I frame my discounts?
How would you frame the discount? "$20 off" or "40% off"?
Would it change if the price was $150?
Today's Thursday Thread is dedicated to this question: How should I frame my discounts?
It's been proven again and again that consumers decide differently on the same absolute discount depending on the base price.
This means it's not the same for us to save up $40 if the original price was $50 than if it was $900, even though we are saving the same amount of money.
This means it's not the same for us to save up $40 if the original price was $50 than if it was $900, even though we are saving the same amount of money.
To maximize value, discounts for small priced items should be expressed in relative terms (%), while high priced items should be expressed in absolute terms ($x).
As a rule of thumb, you should choose the highest number for the discount, either for $ saved or % saved.
As a rule of thumb, you should choose the highest number for the discount, either for $ saved or % saved.
If the regular price is below $100, display the discount in terms of percentage saved:
"From $80 to $46.. 40% saved!"
If it's above $100, present your discount in terms of how many dollars will be saved.
"From $180 to $106.. $74 saved!"
Now you know!
"From $80 to $46.. 40% saved!"
If it's above $100, present your discount in terms of how many dollars will be saved.
"From $180 to $106.. $74 saved!"
Now you know!
