Deals are what we all look out for as consumers. As a population, we are always looking for ways to save money and get more value for the pennies we spend.
Although most will view deals as a means of saving money, there is so much more to them. Businesses recognize this, as perhaps more importantly, they have understood the psychology behind the promotional offers they can make and the impact they can have on the consumer.
Deals can create a sense of urgency
Every single industry will have numerous businesses competing with each other for as much of the market as possible. There is hardly an industry available in today’s world that is effectively a monopoly.
As a result of the competition that exists, organizations have to do as much as they can to encourage customers to spend their money with them. This is where offering deals come in.
Firms will offer a certain deal – such as 50% off or Buy One Get One Free – to create a sense of urgency in a consumer’s mind. These types of offers can then be perceived as being too good to miss out on, and with it known that promotional discounts are often limited in time, an individual’s brain will automatically tell them they need to take advantage of it immediately.
Businesses use deals as a competitive advantage strategy
Again, with so many businesses vying for a market share, each of them recognizes that they need to do everything they can to make their offerings more attractive than anyone else in the industry. Certain types of deals can help them to obtain a competitive advantage over their competition, depending on the industry that they are in.
The iGaming industry is one of those that has seen operators use bonuses and promotional offers as a means of trying to achieve a greater competitive advantage. The 32Red sign up offer is a prime example of this, as the casino looks to entice people to join them with a welcome bonus. It allows players to get a matched deposit bonus, thus giving individuals the chance to get “free money” to use for all of their betting entertainment.
Other industries have used deals to try and seek a competitive advantage over the other businesses in their field, too. There are some that offer specialist services which may offer a discount on multiple purchases/bookings. The hospitality sector – hotels in particular – often use this method, as they can often offer a free night or drink/meal after a certain number of previous purchases.
Deals can boost revenues and profits
Undeniably, and perhaps the main reason why businesses continue to offer deals in abundance, they can positively impact the revenues generated. This can then impact the company’s bottom line in the desired way.
As highlighted, consumers can be psychologically impacted when they see an offer, as they are often forced to act immediately upon seeing it for fear of missing out on a deal deemed too good to ignore. Businesses know this, and by making them available, they know they can potentially boost the money they are putting into their coffers.
Customers may find that they are prepared to spend more money than they initially wanted to, or even spend it on something that they did not think they would. It is not unusual for individuals to walk through a shop, find an unknown deal before walking in and then take advantage of it by purchasing it before leaving.
We all love a deal!
As a population – globally and not just in Britain – we all love a deal, and they are something that can often be too difficult to resist. The very idea of getting more value for our money or being able to save the pennies in a time when money can be hard for many, deals have become even more attractive to the consumer.
Businesses have recognized this and have known what strategies to use in order to maximize their profits. Of course, companies spend thousands of pounds on consumer analytics and behaviors, knowing that people are always seeking new ways to get as much bang for their buck!
