Offering discounts can be a powerful weapon in your conversion arsenal especially over the holiday season or when entering new markets. However, used without a strategy and you may find they don’t work as well as expected or worse, you may end up losing money.
In this post, we’ll look at review the major types of offers and then look at five offers you can use to drive conversions in your online store.
Types of Offers
There are several overall 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 type of discount is percentage based discounts. This can include small incentive percentages like 5% or 10% off, larger discount to really drive conversions like 20% and 25% or large percentages like 50%+ to liquidate merchandise that isn’t moving or old.
• Pound Value Discount – Offers that are based on a pound value can be positioned as a credit. This makes people feel like they’re wasting money if they don’t use it.
• 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.
5 Offers To Drive Conversions This Holiday Season
There are many types of offers you can use to increase sales and conversions this holiday season when taking your ecommerce business to now countries. Below, we will take a look at 5 of the most powerful.
• First Time Visitor Offer – Driving targeted traffic from new countries can be expensive, and many times, you only get one shot at converting them. That’s where first time visitor offers come in. A first time visitor offer can be used to effectively assist in converting new traffic into paying customers.
• Abandon Cart Offers – With close to 70% of all people abandoning their carts, abandon cart email offers are a critical tool to reengaging visitors that have partially completed checkout but abandoned their carts.
• Referral Offers – Statistics have proven time and time again that people are much more likely to purchase from you if referred by a friend or family member. Use this to your advantage this holiday season by implementing and encouraging referral offers.
• Retargeting Offer – One of the most underused, yet powerful marketing tactics right now is retargeting offers. Retargeting ads on Facebook or Google serve as a reminder to come back to your store and offering a small discount acts as a nudge to purchase.
• Influencer Offers (Bloggers, Celebrities etc.) – When entering new markets, one of the most effective channels can be reaching out and partnering with a local influencer. Whether it be a Instagrammer, blogger or other popular personality, utilizing their network and offering a discount to all their fans can fast track your online business in new international markets.
Offers and discounts over the holiday season are expected by many consumers and can be an effective tool to help break into new markets and increase conversion. However, before offering any discount, make sure you have a clear goal in mind, understand your margins and track everything.
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