What Is an Automatic Discount?

An automatic discount is a promotion applied at checkout when certain conditions are met without needing a promo code. Basically is a Cart Discount that applies automatically without any customer input.

Businesses can use automatic discounts to make it easier for customers to buy and make checkout faster. Additionally, they can be a useful way to incentivize spending.

For automatic discounts to be successfully applied though, it’s important that all items eligible for the discount are added to the cart before they reach checkout. This means that any items they need to buy, in addition to any items they get as part of the promotion, should already be in their carts.

Additionally, remember there can only be one active automatic discount applied per order – this takes precedence over discount codes, so customers cannot use multiple discounts on a single order.

Types of Automatic Discounts

1. Volume-Based Discounts

Volume-based discounts are among the most common automatic discounts. They are automatically applied when customers meet specific criteria, often related to the quantity or value of items purchased. For example, a customer might get a 10% discount on purchases over $100 or get one item free when buying four items.

2. Member Discounts

Membership-based discounts are automatically applied to customers who are part of a loyalty program, subscription service, or other membership arrangement. This may encourage customers to join these programs for ongoing savings.

3. Seasonal or Time-Based Discounts

Seasonal or time-based discounts apply automatically during set times of the day, week, or year. For instance, a store might offer 15% off purchases made in the morning or a restaurant might provide discounts for meals purchased during off-peak hours. Seasonal discounts might be applied during specific holidays or seasons.

4. Bundling Discounts

Bundling discounts are given when a customer purchases a set of items together. For example, buying a computer might trigger a 20% discount on a printer.

5. First-Time Buyer Discounts

These automatic discounts apply to customers making their first purchase from a retailer. This can encourage new customers to complete their initial purchase.

The Benefits of Automatic Discount Codes

You can use automatic discounts to bring in new customers, boost the average basket value of your current customers, or even increase repeat purchases. In fact, using discounts can be one of the best ways to increase your sales. Here are some benefits of automatic discounts:

👍 Attract New Customers

Automatic discounts are enticing to shoppers. They see the immediate value and savings, making them more likely to convert into customers.

👍 Enhance Customer Retention

Discounts tied to repeat purchases incentivize customers to return. It’s a strategy to keep customers engaged and shopping with you more regularly.

👍 Boost Profit Margins

Although discounts lower the price of individual items, they can increase the total sale volume. This often leads to higher total profits.

👍 Improve Brand Image

Giving automatic discounts can enhance your brand’s reputation. It positions your business as one that values its customers and offers competitive pricing.

👍Reduce Inventory Costs

Offering discounts on existing stock can expedite sales, helping to clear old or excess inventory. This results in lower inventory carrying costs.

👍 Enhance Customer Loyalty

Discounts, especially those rewarded for loyalty or repeat business, can strengthen the bond with your customers. It’s a tangible way to show appreciation, encouraging a lasting customer-business relationship.

Automatic Discounts Can Be Used Even Thru Email Marketing

After customers purchase something, take a survey, or complete a certain action on a website, businesses often send them an automatic email with a coupon or discount code to encourage them to make more purchases. This is a simple way of incentivizing customers to buy more items. 

An email marketing platform or e-commerce system typically sends the email automatically based on predefined triggers or rules, such as a certain amount spent or a specific product purchased. The coupon code included in the email can be a percentage or dollar amount discount or a free gift with a purchase.

This marketing strategy works well, as it encourages repeat customers and builds loyalty. It is also a useful tool for businesses to measure how successful their email marketing has been. They can see this by tracking the number of coupons that have been redeemed.

However, it’s important for businesses to ensure that the email containing the coupon code is well-crafted and not seen as spam and that the terms and conditions of the discount are clearly communicated to customers to avoid confusion or disappointment.

Automatic Discount vs. Manual Discount

• Automatic Discounts: Automatic discounts are auto-applied discount codes to a customer’s purchase during checkout. These discounts are created and applied by the store’s checkout system and do not require any additional action on the part of the customer.
• Manual Discounts: Manual discounts require the customers to enter a discount code or coupon code at the time of checkout to receive the discount. This type of discount requires more effort on the part of the customer, but it also allows the store to track promotional codes and monitor the success of their campaigns.

FAQs

How Automatic Discounts Work?

Automatic discounts are typically based on certain conditions being met, such as purchasing a certain quantity of items, being a member of a loyalty program, or making a purchase during a specific time period. They can be used as a marketing tool to encourage customers to purchase or reward loyal customers for their business. Automatic discounts can be applied in various ways, including through online shopping cart systems, point-of-sale systems, and other electronic payment systems.

What Is an Automatic Free Shipping Discount?

You’ll receive a discount for shipping costs if specific criteria are met. You could offer free shipping on orders over $50. You can also specify a minimum number of products for each order to receive the discount.

How to Create Specific Automatic Discounts?

1. Determine the type of discount: Businesses can offer a range of discounts, from percentage reductions and flat-rate discounts to free shipping, BOGO deals, and loyalty rewards. Select the one that best meets your company’s objectives.
2. Set the criteria: To qualify for the discount, customers should meet certain requirements. This may involve placing an order of a certain value, buying particular products or categories of products, or being part of a loyalty program.
3. Create the discount code: Generate a unique discount code that customers can enter at checkout to receive the discount.
4. Set the expiration date: Determine how long the discount code will be valid.
5. Set up the automation: Set up the e-commerce platform or plugin to automatically apply a discount code when the customer meets its requirements.
6. Test the system: Test the system to confirm that the discount is being properly applied and the coupon code is active.