Insights
Drive Revenue and Growth using Offers, Coupons, Discounts and Deals
Offering discounts is a powerful weapon to increase your online sales if used correctly. On the other hand they can do significant damage to your brand our worse your business can become unprofitable. It’s important to consider your overall brand strategy before you begin offering discounts.
Building an online business will generally involve a lot of experimentation to understand what works best. The best approach is to choose a goal for every campaign and offer, start small and measure the results.
What are pros and cons of online store offers
Pros:
- Easy and quick to implement
- Instant results
- Easy to track
- Increased customer acquisition.
- Increased conversions.
- Increased customer loyalty.
- Get rid of access or old stock.
Cons:
- Decreased margins and profitability.
- Possible brand damage.
- Decreased conversions outside of sale periods if you train visitors to wait for offers.
- Tendency to drive non-loyal (price driven) shoppers.
- Tendency to reduce average order size.
Type of online offers
Percentage Based Discount
Most popular way of offering discounts.
Dollar Value Discount
Dollar value can be positioned as a credit.
Free Shipping
Shipping cost are often quoted as the number one reason of shopping cart abandonment.
Free Gift
Gifts are a great way to provide additional value to the customer.
When and How to use online offers.
Weekly or Monthly offers
Periodic offers are perfect for driving sales and meeting revenue targets. EG: Promo codes can be sent to customers vie email newsletter.
Prelaunch Offers
EG: Offer free product or discount in return of sharing your site prior to a new product launch.
Holiday / Season offers.
Black Friday, Christmas, Summer of Winter sales are the biggest ones.
Abandon Cart offers.
With close to 70% of shoppers abandoning their carts, abandon cart email offers can be a powerful way to bring those lost sales back.
Email Newsletter or membership subscription offers.
Building a community and an email list is extremely important. By providing an incentive to sign up you are increasing your chance of conversion.
Offers for Liking, Following or sharing.
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
Word of mouth marketing is the most important social media. Use this to your advantage and use offers to encourage referrals.
First time shopper offer
This can help to convert a first time visitor to a customer.
Volume Size offer.
Volume size discounts are and effective upselling tactic to encourage customers to spend more, increasing your average order size.
Exclusive Social offers
Exclusive offers on your social networks can be a great way to build a strong relationship with your customers and increase sharing.
Customer Loyalty offers
Rewarding customer loyalty can help build an even stronger bond.
Exit intent offer.
These also can help to convert a visitor to a customer. An exit intent offer will pop up just as a visitor is about to leave your site.
Retargeting Offer
Retargeting ads and offers are effective because they are only shown to visitors who have already been to your site.
Influencer Offers
Partnering with bloggers or celebrities who have large audiences is a great way to increase your audience.