We all know that students love a good discount, but how does this influence their spending and shopping habits? An increasing number of offline and online retailers are adapting their business strategies by putting in place a student discount programme in order to keep up with the demand for discounts and offers.
The question is, are student discounts worth it for small businesses or is it a tactic for only large corporations? Student discounts are great at encouraging that first visit to your store or website, it is then down to you and your customer service skills to make the experience great so that students keep coming back for more.
Shop VS Won’t Shop
It is no longer seen as a kind gesture to offer students an exclusive discount, it’s an expectation, and businesses that don’t fall short. Businesses that provide a discount are instantly more favourable than those who don’t; students want brands to understand that they aren’t made of money but still want to shop with them, so if they want their custom they are going to have to make it easier for them to do so.
Discounts encourage students to branch out and try out brands that they haven’t tried before; this is especially effective for small local businesses who are competing with large chains. By offering a discount and advertising this on your marketing materials, students will feel recognised by you and be more likely to try out your products. Students like to feel involved and small businesses help them feel as though they are contributing to something much bigger than themselves, in comparison to bigger businesses.
Even when students are trying to cut back on unnecessary costs, FOMO runs strong within this age group and the fear of missing out on a product that everyone is talking about can drive them to impulse buy. If your business offers a discount code or special sale, students will feel as though you are helping them out by enabling them to get money off and still be able to buy what they want within a small budget.
Whilst student discounts are expected nowadays, students do appreciate this gesture and this creates brand loyalty which is spread through word of mouth to encourage their peers to also shop with their code or ID. You may be thinking that 10% off your products is a loss, but the return custom and word of mouth is invaluable. If two coffee shops have similar prices but one offered a student discount, naturally students would rather visit the latter.