Discount strategies to grow your TikTok Shop

Smart Discount Strategies to Grow Your TikTok Shop

Discounting is a powerful tool to stimulate purchases and grow your TikTok Shop store. However, discounting without a strategy can erode profit and make customers question a product's true value. This article examines a smart discount strategy that helps you maximise revenue, attract new customers and maintain healthy profit margins.

I. Discount Strategies to Increase Conversion Rate (CR)

The primary goal is to convert viewers into buyers quickly.

1. Flash Sales With Limited Time and Quantities

• Objective: Create a sense of urgency and scarcity.
• How to implement it: Offer deep discounts only on a fixed quantity (for example, 50 units) or for a very short period (for example, the first 15 minutes of a livestream).
• Results: Encourage impulse purchases, often delivering the highest conversion rates during livestreams. Make sure the end time is clearly announced so customers do not hesitate.

2. Custom Vouchers (Coupon Codes)

• Objective: Measure campaign performance and personalise offers.
• How to implement it: Create exclusive discount codes (for example: TIKTOK20 for the first 20% of orders) or codes reserved for livestream viewers, new followers or returning customers.
• Results: Helps you accurately track order sources and offer purposeful incentives that encourage customers to act.

3. Free Shipping

• Objective: Remove the biggest barrier to purchasing.
• How to implement it:
  • Conditional Free Shipping: Offer free shipping for orders that reach a minimum order value threshold (AOV) set for the offer. This threshold should be slightly higher than your current AOV to encourage customers to buy more.
  • Shipping Support for New Customers: Use this offer to attract first-time buyers to your shop.

II. Discount Strategies to Increase Average Order Value (AOV)

The goal is to encourage customers to spend more in a single purchase.

1. Discounts Based on Spending Thresholds (Tiered Discounts)

• Objective: Encourage customers to add products to their carts to qualify for a larger discount.
• How to implement it: Set Discount Tiers:
  • Spend at least 200K VND and get 10K VND off.
  • Spend at least 400K VND and get 30K VND off.
  • Spend at least 600K VND and get 60K VND off.
• Results: This is an effective strategy to increase AOV and encourage upselling and cross-selling.

2. Bundling and Cross-selling Strategy

• Objective: Sell complementary products alongside the hero product.
• How to implement it: Group related products into bundles priced more attractively than separate purchases (for example: "Complete Skincare Bundle" for 15% off).
• Results: Meet customers' needs comprehensively while clearing inventory effectively by combining it with best-selling products.

III. Discount Strategies to Build Loyalty

The goal is to encourage repeat purchases and increase LTV (Customer Lifetime Value).

1. Personalised Offers for Existing Customers

• Objective: Drive the repeat purchase rate.
• How to implement it: Use private messages (inbox) or email (if available) to send discount codes that are exclusive to previous customers.
• Results: Customers feel valued, increasing their loyalty and willingness to spend more on their next purchase.

2. Free Gifts (Freebies)

• Objective: Increase perceived value without reducing the product's actual value.
• How to implement it: Include product samples, small accessories or a unique gift when customers reach a certain spending threshold.
• Results: Free gifts often feel like a better deal than a direct discount and let customers try other products from the shop, paving the way for future purchases.

Applying a smart discount strategy will help your TikTok Shop not only grow sales in the short term but also build a loyal customer base, ensuring sustainable profitability. The key is to always measure the performance of each discount programme to refine it and optimise costs.

If your business is looking for a comprehensive growth solution on TikTok Shop, contact our expert team now for detailed advice.

Let Height Media support your business on TikTok Shop!

Learn more about store operations at Height Media: https://heightmedia.vn/dich-vu/Tiktok/dich-vu-van-hanh-gian-hang-tiktokshop.html

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