Hi All,
There are several types of discounts and offers you have at your disposal. Let’s take a look at the most common:
- Percentage Based Discount - The most popular way to offer discounts is percentage based discounts. This can include small incentive percentages like 5% or 10% off, larger discount to really drive sales like 20% and 25% or large percentages like 50%+ to liquidate merchandise that isn’t moving or old.
- Dollar Value Discount - Offers that are based on a dollar value can be positioned as a credit. This makes people feel like they're wasting money if they don’t use it. In some studies, redemption of dollar based offers vs. percentage based offers can be as much as 175% greater.
- Free Shipping - Shipping costs are often cited as the number one reason for shopping cart abandonment. Offering free shipping is a great way to mitigate this and increase conversions. Often this is used in conjunction with a minimum order size to help increase the average order value.
- Free Gift - A free gift with a purchase can be a great way to provide additional value to customer. If used strategically, it can also be used to increase average order size and/or to get rid of product that isn’t moving.
When and How to Use Offers
There are a hundred and one ways you can use sales, offers, discount and deals to drive customer acquisition and conversions. Let’s take a look at some of the most popular ways below along with an example for each:
Weekly/Monthly Offers to Drive Sales and Meet Revenue Goals - These are traditional sales used to drive increased sales. Many times sales are used at the end of a month or quarter to increase revenues to meet projections and goals.
Weekly/Monthly Offers to Drive Sales and Meet Revenue Goals - These are traditional sales used to drive increased sales. Many times sales are used at the end of a month or quarter to increase revenues to meet projections and goals.
Pre-launch Offers - If you're still in the pre-launch stage of your business or maybe even launching a new product, you can use prelaunch offers to help drive traffic and peak interest.
Holiday/Season Offers - Black Friday, Christmas and New years are the big ones, but the whole year is sprinkled with holidays that you can use to stretch revenues with offers.
Abandon Cart Offers - With close to 70% of all people abandoning their carts, abandon cart email offers can be a powerful tactic to bring those people back.
Email/Newsletter Subscription Offer - As you probably already know, building an email list is extremely important for online retailers. By providing an offer in exchange for visitors emails address, not only do you increase the chance of a conversion, but you also get their email, providing you with the opportunity to market new products and offers to them in the future.
Offers for Liking, Following and Sharing On Social - One of the hardest parts of running a new online store is getting word out. Giving visitors and customers an incentive to share your store with their social circles can be an effective way to create some inexpensive word of mouth.
Referral Offers - People are much more likely to purchase from you if referred by a friend or family member. Use this to your advantage and use offers to encourage referrals. You can choose to give a deal to the person referring, the person being referred or both.
First Time Shopper Offer - Providing a first timers offer could be just the nudge those first-time visitor needs to be converted to a paying customer.
Volume/Cart Size Offer - An offer based on the total value of a shopping cart is an effective upselling tactic to encourage customers to spend more, increasing your average order size. A strategic way to incorporate this into your online store is to calculate your average order value for the previous few months and offer a discount or free shipping on all order 10-20% over your average order value.
Exclusive Social Offers - Exclusive offers on your social networks can be a great way to build a strong relationship with those that follow you as well as provide a reason for new people to follow and subscribe to your social channels, which will allow you to market to them in the future.
Customer Loyalty Offers - Rewarding customer loyalty can help build an even stronger bond while also only providing discounts to customers that already spend money with your online store.
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