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In the world of e-commerce in Saudi Arabia, discounts are considered one of the most powerful tools influencing customer decisions. However, the question that always arises is: Is it better to display the discount as a percentage (for example, 20%) or as a fixed amount (50 riyals off)? Many store owners fail to realize that the way a discount is presented can completely change a customer's perception of the offer, even though the value may be the same.
1. Percentage Discount: Grab Attention with Large Numbers
When a customer sees a "50%" discount, they immediately feel they are facing a golden opportunity, especially if the product is expensive. A large percentage quickly grabs attention and creates a strong sense of benefit. For example, if a customer sees a bag priced at 600 riyals and it is offered at a 50% discount, it will be more enticing than "300 riyals off."
2. Fixed Amount Discount: Clarity and Ease of Understanding
Sometimes, the percentage isn't clear to customers. But when you say "100 riyals off," the message is straightforward and easy to understand. This approach is particularly useful for medium- or low-priced products, as it makes the customer feel the difference tangibly.
3. When to choose each method?
* For expensive products: It's best to display the discount as a percentage, as the number appears larger and more attractive.
* For cheap or medium-priced products: It's best to display the discount as a fixed amount, as the customer feels the discount is truly effective.
4. Psychological Impact on Saudi Customers
Customers in Saudi Arabia are greatly influenced by the visual design and presentation of the discount. If you write "70% off for a limited time," the feeling of scarcity and urgency increases, which increases the likelihood of a purchase. Whereas, when you display a fixed amount, you motivate the customer who cares about quick calculations and clarity.
5. Real-world examples from the market
* Many clothing stores in Saudi Arabia rely on percentage discounts (30% - 70%) because they convey a sense of significant savings.
* Meanwhile, electronics stores tend to offer discounts by amount (200 riyals off a mobile phone) because the prices are high and the customer needs to know exactly how much they will save.
6. Combining the two methods
Sometimes the smartest way is to use both methods together. For example: "Save 250 SAR (25%)." This method satisfies the customer who prefers a percentage and clarifies the customer's preference for the amount.
7. Link Discounts to Marketing Campaigns
Discounts, whether percentage or amount, become more powerful when combined with offers such as "For a limited time" or "While stocks last." This approach allows customers to make a quick decision and reduces hesitation.
Discount presentations are not just a formality; they are a fundamental marketing strategy for online stores. If you choose the appropriate method based on the type of product and the behavior of your Saudi customers, you will achieve higher sales and increase customer satisfaction. The percentage provides a strong visual impact, while the fixed amount provides clarity and ease. It's always best to test both methods and see which one delivers better results for your store.
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