1. Give Round or Precise Discounts

                                                  Give Round or Precise Discounts

Round percentages seem big, while decimal percentages seem urgent.

Which discount is better: 24.7% or 25%?

It depends.

Round numbers can feel larger: A drink was more energizing with 100mg of caffeine (vs. 102mg; Pena-Marin & Bhargave, 2016; Thomas et al., 2010).

However, precise numbers feel unstable. You imagine 24.7 on a narrow scale in which any movement — even a slight nudge — can change this number.

Subconsciously, 24.7% can easily change. Perhaps even disappear. Therefore, customers feel motivated to grab this discount while it's still available. Indeed, customers were motivated by a 6.8% (vs. 7%) discount because they believed it would end sooner (Jha et al., 2023).

How to Apply

• Commit to One Side. Your discount should be 7.7% or 10%. Not 8%.
• Adjust Discounts for Segments. Are customers motivated by price? Give 25% off. Urgency? Give 24.7% off.
• Add Decimals to Long-Term Discounts. 16.2% off can imply urgency even if there's no deadline.

2. Separate Your Discounts When Possible

                                             Separate Your Discounts When Possible

All else equal, customers prefer coupons to visibly reduced prices.

Consider a $10 discount.