The student market presents a relatively untapped opportunity and can be a significant target audience for some brands. According to Bank of America, Gen Z's economic power is the fastest growing, and the generation's income is expected to increase fivefold to $33 trillion by 2030. This will account for over a quarter of global income and surpass the income of Millennials by 2031. Therefore, offering student discounts is one of the easiest ways to influence buying habits and start building brand loyalty.
With a simple google search for the best deal for students, a list of student discounts will be readily available. But Apple's Back to School Promotion offers one of the best student discounts, namely college student discounts.
As shown above, the same MacBook Air can be purchased for $100 less on the Education store home. In addition to education pricing, there are exclusive student deals such as a $150 gift card, 20% off AppleCare+, and more. The $150 gift card acts as a driver for them to make repeat purchases hence increasing Customer Lifetime Value (LTV). Find out how to automatically give a discount off 2nd order here.
When a good deal is available, it spreads quickly through word of mouth, social media, and other channels as the level of interconnected influence within the student demographic is unmatched by any other group of buyers. Hence, offering student discounts can expand your reach within the collegiate community resulting in an improved Conversion Rate and reduced Customer Acquisition Cost (CAC). Provide discounts to specific customer segments here.
Pick this tactic up easily, here's how:
- From your Shopify Admin, go to Customers to add relevant tags for each customers i.e. Student.
- Go to Settings under Store design, enable Customer based pricing.
- Next, from your Konigle dashboard go to increase LTV strategy, implement ‘Customer Based Pricing’ tactic.
- Create new pricing rule to reward your loyal customers based on the tag created in Step 1.
- Send an email out to said customer group informing them of the exclusive deal.
Alternatively, you can enable the LTV Booster tool also available on Konigle, this tool automatically gives your customer a discount off their second purchase!!