Stop Overusing Discounts: When to Use Them and When to Avoid Them in Email Marketing
For many brands, discounting is the go-to email marketing strategy. It’s an easy way to increase short-term sales, but over time, it can:
Train customers to only buy when there’s a sale
Lower your profit margins
Attract bargain shoppers who never become repeat buyers
Weaken your brand positioning
If your customers expect a discount every time, your email strategy is working against you. But that doesn’t mean discounts should be eliminated entirely. The key is knowing when to use them and when to avoid them.
When Should You Use Discounts?
Discounts can be strategic when used correctly. Here’s when they make sense:
1. First-Time Purchase Incentives (Only When Needed)
Offering a small discount for a first purchase can increase conversions, especially for brands with a higher price point or unknown reputation. However, not every brand needs one.
Better Alternative: Instead of offering a discount immediately, test using exclusive content, free shipping, or a gift with purchase to convert new subscribers.
2. Clearing Out Seasonal or Excess Inventory
If you need to move products quickly, a targeted discount can help, but don’t train your audience to expect seasonal discounts every year.
Better Alternative: Try bundling products or offering a limited-time value add, such as an exclusive product not available for sale.
3. Win-Back Campaigns for Lapsed Customers
If a customer hasn’t purchased in 6+ months, a targeted discount can help re-engage them. However, it shouldn’t be the only win-back tactic you use.
Better Alternative: Use personalized recommendations or send an email showcasing what’s new since their last purchase.
When Should You Avoid Discounts?
1. Every Time You Need a Revenue Boost
If you’re running a discount every time you want to make money, you’re devaluing your brand and losing long-term customers.
Better Strategy: Build an automated email strategy that nurtures customers with product education, social proof, and exclusivity—so you don’t need to rely on constant discounts.
2. In Every Email Campaign
If your customers see discounts in every email, they’ll start ignoring your regular-priced products.
Better Strategy: Mix in storytelling, educational content, product spotlights, and customer testimonials to create engagement without discounts.
3. For Your Most Loyal Customers
If someone is already buying from you regularly, why give them a discount? They are proving they’re willing to pay full price.
Better Strategy: Reward loyalty with exclusive perks like early access to new products, behind-the-scenes content, or personalized recommendations.
How to Create an Email Strategy That Sells Without Discounts
If you want customers to pay full price, your email marketing needs to create value beyond price alone.
Here’s how:
1. Build a Strong Welcome Flow
Instead of immediately offering a discount, use your welcome series to:
Introduce your brand’s story and values
Highlight bestsellers with customer testimonials
Offer a non-discount incentive like free shipping, GWP (Gift with Purchase) or exclusive content
2. Use Smart Segmentation
Not every subscriber should receive the same offers. Segment based on:
Engagement level (new subscribers vs. loyal customers)
Purchase history (frequent buyers don’t need discounts)
Browsing behavior (send targeted product recommendations)
3. Create Urgency Without Discounting
Limited-Edition Products – Offer items that are only available for a short time
Early Access for VIPs – Let engaged customers shop before the public
Low Stock Alerts – Notify customers when a product is almost gone
4. Leverage Social Proof and User-Generated Content
Instead of offering discounts, let real customers do the selling for you. Feature:
Reviews and testimonials in emails
UGC from Instagram or TikTok
Influencer collaborations
5. Educate Instead of Discounting
Some customers need more information, not a lower price to convert. Send:
How-to guides
Product comparisons
Customer stories
The Bottom Line: Discounts Should Be a Tool, Not a Crutch
If your email strategy relies on discounts, it’s time to make a shift. Use them sparingly and strategically, and focus on creating an email experience that builds loyalty and drives sales at full price.