You will often hear arguments over whether one type of discount is best: discounts that are fixed and known upfront, or discounts that are flexible and only revealed after the customer has placed their order.
While both of these strategies have their pros and cons, what works for one eCommerce store will not necessarily be a good fit for another.
The reason is that the best way to run discounts depends on many details related to your unique business and specific customers.
For instance, some eCommerce sites can get away with running deep discounts for short periods of time because their products are relatively inexpensive, while others will run into trouble if they try to use the same strategy with high-priced products.
So with that in mind, here’s a list of 5 strategies for running successful discounts without jeopardising your business.
Offer Free Shipping
It may seem obvious, but offering free shipping can have a significant impact on conversion rates. Customers often have different expectations for different products, but a general rule of thumb is that customers are willing to pay a premium for a product that has free shipping.
This strategy is so effective for several reasons: it makes the shopping process more convenient for new customers, it increases the perceived value of your product, and it allows you to promote your brand more effectively. Plus, it’s a great way to increase click-through rates on your ads.
Use Coupon Codes
Coupon codes can be a great way to drive people to your site and increase sales. They add an element of scarcity to your discounts that encourage customers to act quickly.
The only catch is that you need to make sure that your coupon codes are easy to find and redeem. This can be as simple as putting them on your homepage, but a better option is to put them in a dedicated coupon section to make them more discoverable.
Recapture Lost Customers
Consider offering repeat customers a discount if they decide to purchase from you again. You can also consider offering different discounts for different products to encourage repeat purchases.
For example, you could send a notification to customers who purchased a certain product offering a discount for their next purchase. In addition, you could give them a coupon code for their next product.
Recapturing lost customers is an excellent way to increase sales without losing money on discounts. It also helps you build relationships with your customers and drive repeat purchases.
Offer Bundled Deals
Another great way to drive more sales is to offer bundled deals. This allows you to sell your products to customers as a “package”, and you can reduce the perceived cost of this package by offering a discount.
Bundled deals can be a great way to increase sales, but you need to make sure that your deal is still worthwhile for the customer after you factor in the discount.
For example, if you are selling a pair of shoes for $50 with a $10 discount, you might have a tough time selling that product. However, if you offer a discount on a package of two or more products, you might be able to reduce the price per unit and make the deal more attractive.
Optimise Your Site for Mobile
An increasing number of customers are shopping online from their smartphones and tablets. In fact, mobile devices have now become the #1 way for people to shop online.
The reason for this is simple: people are more comfortable doing business on their own devices. So if you are going to take advantage of discounts to increase your sales, you need to create a site that is optimised for mobile customers.
This doesn’t just mean making sure your pages are small enough to be viewed on smaller screens. It means that you need to test your site on various devices and screen sizes to make sure that it looks good and is easy to navigate.
Discounts can be a powerful tool for increasing sales, but you need to be careful. Not every strategy will work for every eCommerce site, and you need to make sure that you can afford to run discounts without sacrificing your profits.
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