Urgency is a critical element in moving customers past the purchase threshold, and can be aided with specific wording in your marketing communications. One downside to coupons and discounts is that they train consumers to expect them when making a purchase from you.
This expectation often prevents shoppers from purchasing items at regular price from your business, and encourages them to look for competitor discounts. In the realm of ecommerce, this expectation is becoming increasingly true with free shipping promotions. Consider this example: without doing the math, which of the following do you think represents the biggest percentage discount? In fact, clever marketers depend on this consumer behavior to increase sales. The main takeaway is this: although the primary rule of economics states that consumers will act in the most rational, self-benefiting way, the way discounts are presented have a major effect on purchase behavior.
Now that you understand the effects that discounts have on customer behavior, you can begin planning how to make those behaviors work to your advantage. Before you begin experimenting with different tactics, however, you should familiarize yourself with the most common discount types, summarized below:. First impressions are everything. Whether you are a new brand or looking to grow your customer base, have a welcome offer easy to find on your website. If you offer this option, make sure your email marketing has quality content to continue engaging with customers.
This is especially important if your business is impacted by a natural disaster or global crisis. Here are a few ways you can keep your business goals in check and increase revenue instead of losing it. When offering discounts, be sure to keep a profitable margin. When you offer products on sale, how much you spend acquiring new customers changes. Understanding your customer acquisition costs and your customer lifetime value will be key indicators when crafting your strategy. Since increasing sales is a common goal for businesses offering a discount, you need to set your sales targets.
Make sure that your sales targets are high enough that you maintain or, better yet, increase your profits. Ecommerce businesses today are scrambling to grow online sales. Boosting your promotional strategy with different discounts and free shipping can increase sales and encourage customer loyalty — through good times and bad. Subscribe to our bi-weekly newsletter to get the latest thought leadership content delivered right to your inbox — from blogs and resource articles, to podcast episodes, webinars and more.
She holds a B. When she's not curating content, Beatriz loves to travel the world, share her journey with Type 1 Diabetes, and find Austin's most Instagram friendly spots. Get The Print Version Tired of scrolling? Table of Contents. Every consumer loves a good deal myself included. View this post on Instagram. Want more insights like this? Beatriz Estay. View all posts by Beatriz Estay.
Less Development. More Marketing. It's a tough call that requires considerable thought, industry knowledge, and situational awareness.
If you're interested in implementing a discount, it's important to get a feel for how much risk you're willing to assume. And you need to carefully determine whether one can appeal to your prospects and customers without shaking their faith in and positive perception of your business. Originally published Aug 9, AM, updated October 28 Logo - Full Color. Contact Sales. Overview of all products. Marketing Hub Marketing automation software.
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Insiders 5 min read. Everybody loves a deal — or do they? What is a sales discount? Why Offer a Sales Discount It can quickly drive sales. It's a good way to move excess or outdated inventory. It can help you create demand for a new product or service. You can attract new customers. The game mechanics are simple.
Each month Sephora curates a whole new selection of their latest and best-selling products and then creates a game incorporating these products. Try gamification feature from Checkout Boost. This feature allows you to show offers only to customers whose order value reaches a goal amount. A heading bar will show up to encourage customers to spend a little more in order to receive a sweet offer. Product bundling is a type of upsell and cross-sell strategy that entices shoppers to order more items and enjoy the benefit of a bundled pricing.
Product bundling works because shoppers will perceive that they will save more money by buying two or more items together rather than purchasing them individually. To expand your reach and help you drive revenue, collaborate with influencers.
Find the influencers that match your brand ideals and goals and then check their authority, reputation, and engagement. What you can do is to provide your selected influencers with an exclusive discount code that they can share with their followers.
Depending on your budget, you can ask these influencers to post the discount code via their social media sites. If you have more budget, you can sponsor a Youtube vlog with your chosen influencer. Usually you can get product placements and mentions on the sponsored vlog just like how Native sponsored this influencer to feature their products.
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