Importance of Online Shopping Discount since COVID-19 in 2020
The world is already is in the grip of the most devastating pandemic of history. It has changed the face of businesses. While many big businesses have adopted the virtual face mask, many small businesses are still struggling to make an untainted online presence. The marketing techniques, customer engagement, and public relations have seen a turbulent swirl.
Why are people looking for more discounts during Covid-19
The unemployment rates in the USA escalated to unprecedented levels of 14.8% in December 2020. The purchasing power of people dropped much lower than ever before. In the US alone, there were 10 million claims of unemployment and a mass exodus of migrants. In such a situation, people were piqued by discounts and coupons.
In the initial stage of the pandemic, they looked for lucrative deals to combat the situation by saving a few dollars and there. According to a study, almost 60% of Americans resorted to online discounts during Covid 19. This accentuates the rising importance of discounts during the pandemic. This whopping dependence on discounts attracted people to grab coupons to cut down on their expenditures.
Offline services were seized.
The physical aura of any business is far more different than the virtual presence. Businesses were forced to shut down during the onset of the pandemic, and thus, they ran out of offline marketing techniques. Many small businesses didn’t even have an online presence. Unlike sites like Amazon and Walmart that have a robust online presence, small businesses had no option but to offer online discounts to their customers. With more discounts, businesses wanted to follow the Mere Exposure Effect. Here people develop a preference for a product that they are more familiar with. With more discounts, businesses ensure that people gel up with the business.
While big brands can do without offering many discounts and coupons as they already have a loyal customer base. However, small businesses offer discounts on shipping, complementary discounts, coupons on food items, etc.
Discount on Luxurious items
The pandemic created a temporary scarcity of essential items. Thus, there was a surge in the prices of grocery items and essentialities. At this time, many luxurious items like television, air conditioners saw a drastic fall. The focal point of the public was not luxurious items. Thus, businesses resorted to discounts and coupons to allure the public.
The Surge in second-hand items
Where one half of the world was crippling with the pandemic, the other half of the world engaged in second-hand business. People took to their wardrobes and other items and went online to sell them at a discount. There was a surge in the number of online sites that were selling second-hand goods. These second-hand goods are more often available at a discount.
In order to make people more familiar with the concept of online shopping, the government encouraged businesses to create better customer experiences.
Better Public Relations
The marketing techniques used by the business are paramount to its public relations. Any significant change in the marketing tacts of the business can affect its public image. In the initial phase of these unprecedented times, businesses could not instantly pounce on discounts and offers. They had a social responsibility to fulfill. When the people were undergoing mental and economic stress, alluring customers to purchase the products was considered unethical.
Many brands like Nike shifted their focus from sole profit-making to community service. Thus, the loss incurred during those times had to be combated. Slowly and gradually, businesses are coming up with new online marketing techniques of coupons and discounts to increase their sales. For example, nowadays, Couponxoo is growing, expanding its reach for more savings for its customers. It is developing algorithms to help with the savings of customers.
Many businesses used the discounting for funding the Covid patients and victims. They allowed a certain percentage of discounts on the purchase, and that amount would directly be deposited for funding the victims.
The company Audible literally gave away its products for free to support the online education of children.
When we are talking about discounts, we can’t leave the financial sector. The Bank of America aids its customers who are struggling with their finances. It reduced overdraft fees, deferred the mortgage payments, and issued refunds for late fees. The company Casetify produces mobile phone accessories and other tech integrated products. It gave away 100% of the revenue generated to covid relief organizations.
Covid has been one of the testing times for the business dynamics. OTT platforms and various television channels like HBO are offering free and discounted subscriptions to people to urge them to stay indoors. Many businesses have resorted to offering underpriced items as a mark of their social responsibility.
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