If you are using the offers, discounts and deals in view of traffic generation to your ecommerce store, using them at the right time in the right way is important to get the intended result. Where this marketing strategy is not used in the apt manner, it could end up resulting in losing the existing brand reputation. It’s important to know if and when to offer deals and discounts for ecommerce store, how to create worthy ecommerce coupons and how to use them in the best view of increasing revenue for the online store. Let’s check out here,
Offers are easy to implement and track. They pay you in increasing the customer base and loyalty. At the same time they may end up in getting you lesser margins or lesser profits when calculated overall for certain durations; they may result in lesser sales outside of offer period, bring shoppers who are solely buying ‘only’ during offer periods. So when can you use them?
Before you plan to offer a discount, make sure you are clear on the brand strategy. When you have thin margins, it may be worth you give loyalty offers rather than weekly sales; for better margins, daily or weekly sales are worthier. To realize which offer works for your brand strategy, you may have to have definite goals for every offer/campaign and give the offers in right amounts for the right results.
To talk on offer types,
- Percentage discounts are the most commonly used and the best. 5-10% discounts may drive 20-25% sales while larger discounts may be used for selling long-aged merchandise.
- Dollar value discounts when converted to credits, it results in people using them just because they don’t want to waste them; this has proven to give more than 150% sales compared to the % discounts.
- Average order value could be increased by free shipping offers which can help to handle cart abandonment.
- Providing additional value to the customer and at the same time increasing the average order size can be achieved by free gift offers. This may be used for selling long-aged merchandise too.
To talk on ways to use offers,
- Weekly or monthly offers drive sales to meet the ROI goals.
- Announcing on offers before the product launch can drive interest and thus the traffic.
- Holiday season offers drive high sales in a short period of time.
- Offers for abandoned carts may drive the people to checkout the cart items till order completion.
- Newsletter sign up offers gives you customer email for further opportunities, in addition to driving the current conversion.
- Offers in exchange of shares via social media can be a great way for sales today.
- Referral offers increase the customer base in addition to driving the current conversion.
- First time order offer gets you the customer again, thus improves the customer base.
- Order value offer gets the people to buy more to avail the offer thus increases the average order size.
- Offers on social networks build better connections and also get new people to subscribe to you.
- Customer loyalty offers give reward points to the customers who would come back to gain more points and thus help in building stronger and longer customer bonds.
- Exit offers may get you a customer who just came upto you as a visitor.
- Retargeting offers or ads are given to existing customers so they spread the word of it to new users who may come to your site gradually.
- Joining hands with influential people helps in brand reputation build and increase customer base
While offers and deals may not be working wonders at all time all through a year at all audiences, they are definitely worth a jackpot when implemented in the right manner at the right time towards the right crowd. If you are on look-out for assistance in estore services like details on discounts for the store, design of “Deal of the Day” Page or so, ask us now.