Is it better to offer your customers discounts or bonuses?
Sometimes it is appropriate to entice customers with a little something extra: either in the form of a discount (so they pay less), or a bonus (so they get more).
But which is better?
The economic argument is that it shouldn’t matter. Let’s say the standard price is $100 for 10 widgets. We could either offer our customer 10%, or $10 off, so they pay $90, which is $9/unit. Or, we could offer a bonus where they pay $100, but get 11 units of value rather than 10. This too equals $9/unit.
So on paper, there’s little difference. But from a behavioural science mindset, which offer is actually going to benefit our business best, and appeal most to our customers?