Would you like to know how we generate 20-30% lifts in revenue for our best eCommerce clients? Clients ranging from start-ups to publicly listed companies?
One word: Discounts
It’s a very simple yet incredibly effective strategy. You simply offer a time limited discount, one with a deadline. Not only does this give your buyer a “better price”, it also creates a send of urgency in their mind: it takes away the procrastination and has amazing results!
However, many retailers will be asking “How should I discount?” or “What should I offer?” Others will comment that they can’t discount because their products are MAP priced, or they simply don’t have the margins. What then? You use Free Shipping – offer a ‘Free Shipping Week’, ending on a set date. You might also be thinking how you’ll come up with a new offer every week? That’s simple: don’t – just use the same offer and extend it every 5-7 days.
It may sound crazy, but we’ve used it for companies that were publicly traded and seen crazy lifts and added tens of millions of dollars to their bottom line using this strategy. We’ve used this for small start-ups where they’re selling a new product in a new vertical and it didn’t work well because they were struggling to convey the value of their product to their customer base. We implemented a couponing strategy and BOOM their conversion rates went up 60-70%.
And the story is consistent, we do this across multiple clients, basically every single client that we can we do this discounting strategy.
Incidentally, we prefer to use discount coupons over free shipping, but feel free to test which works best for you.
Once you’ve decide on your discount, how do you share it with your customers? Ideally, you will add it to your website – this is where we see the best results. Create a banner on your navigation menu, for example, that promotes the offer.
You can also promote the offer in your remarketing ad copy. Google also has something called Dynamic Ad Customizers – this allows you to get a countdown to show in your text ads. An ad might say, for example, “Use code BABE to save 10% for the next 3 days”. Or the next 48 hours, 12 hours, or whatever. The countdown will only start 5 days before so you will need to plan your ads and offers so that they swap out every 5 days to keep the offer valid and live.
So bottom line is, if you’re an ecommerce business we highly recommend using a discounting strategy. It does not decrease the value of your product in your prospect’s eyes, it does hurt margins some ways so you have to deal with it, but the increase in conversion rate for most businesses will definitely compensate for that.
And remember you have all sorts to play with you can try bundling and you can work on ways so that it doesn’t hurt your average order values or your margins etc.
So, go ahead and implement it, and if you’ve got any questions feel free to hit us up.