10 common discount types

Marketing and advertising are part of business models. Modern-day business models have proven that their sales increase when businesses use innovative and simpler ways to market and advertise their products. 

Now one of the methods that businesses evolved and innovated their models is the addition of discounts to their clients.

These discounts increase customer lifetime value, building a loyal customer base that frequently purchases from the same business. 

There are different types of discounts 

personalized discount

1- Personalized discounts​

Digital personalized discounts have revolutionized the field of discounts. It works by analyzing your digital preferences focusing on products, and giving the consumer discounts that are solely dedicated and catered to you based on your digital preferences. Thus the name is personalized

Since they are personalized to your preference, these discounts usually tend to be higher and more frequent compared to routine discounts businesses usually provide. 

Pelican adopts the personalized discounts approach to help businesses and customers.

2- Buy one get one free mode

As the name states, you get a free second product every time you buy a specific product. This is a simple method yet so effective. This model is ideal for businesses that want to empty up inventory quickly and have a high turnover of items. 

Big discount

3- Percentage reductions

Percentage reductions work by reducing the price of a specific product and creating a FOMO, fear of missing out. Sometimes sellers promote percentage discounts to upsell a specific product.

4- Loyalty cards

Loyalty cards can fit into the percentage discount as well. However, it targets loyal customers who frequently buy from the same seller. This creates a loyal customer cycle and increases customer lifetime value. 

5- Pre-purchase discounts

This model of discounts is ideal for businesses that want to grow a particular customer crowd around their product once it launches so that they can have a headstart. Imagine you open a gym, and in the first month, you have 0 clients. This business can use this discount model to create hype around the business and attract customers before it even launches. 

Personalized discounts can use pre-purchase discounts to attract customers from online activity preferences. 

Free shipping

6- Free shipping

Product + free shipping = 5$ vs Product 4$ + shipping 1$

Consumer behavior studies took two scenarios of a product that sells online with a shipping service. They concluded that consumers ordered the first example with the “free shipping” because it is a type of discount, and most search filters while browsing is set on free shipping services.

7- Bundle discounts

This type of discount creates a value package that consumers usually would go for more intuitively because it has more value for their buck than standard packages. 

This can also work as wholesale bulk prices when buying in bulk.

black friday sale

8- Seasonal discounts

Seasonal discounts are often seen in tourism when airlines tend to do packages with discounts during low seasons to promote and upsell their services. 

9- Promo codes and subscriptions

Promo codes often tend to be referrals from influencers that businesses hire to promote a product to their audience at a discounted price.  

The subscription works by periodic discounts businesses provide to customers who have subscribed to their network.

promo code

10- Loyalty points

Loyalty points are ideal for people who frequently buy from the same provider very frequently, and they collect points that at any point can be redeemed for monetary value. Somehow creating a scenario where you get free stuff because you’re a loyal customer.


There are several types of discounts that businesses use and combine to satisfy their customers and keep their sales high. One of the revolutionized ways is personalized discounts. This passive way learns about the preference of individuals and caters to specific discounts with higher frequencies and higher rates without being bothered by newsletters, cards, ads, and sales calls.