Coupon codes, coupons, coupons and discounts. Most online merchants will need to make a decision at some point as to whether they will offer discounts, when they will offer the discounts and the amount of discounts to apply.
Offering discounts and rebates on your online store or e-commerce site can be a powerful weapon in your conversion arsenal. However, if you use them in a hazardous way, you could cause considerable damage to your brand, or worse, no longer be profitable.
In this article, we will discuss the pros and cons of offering discounts on your online store, analyze some of the most popular ways you can use discounts to generate conversions, and of course explain how you can use them from efficient manner.Let’s go.
As part of this article and to keep things simple, we will talk about promotions or offers when we refer to iherb nz discount code, coupons, coupons and discounts.
Advantages and Disadvantages of Online Store Promotions
Before developing more in-depth ways to effectively use offers and promotions to improve customer acquisition and retention, let’s take a look at some of the pros and cons of using offers and promotions at your online store.
- Easy and quick to implement
- Easy to follow results
- Improve customer acquisition
- Improve conversions
- Improve customer loyalty
For whom are the offers adapted?
As mentioned before, offers and promotions offered on an online store can be effective tool to improve customer acquisition and retention. However, it is important to consider the overall strategy of your brand before you start offering discounts and rebates.
Finally, you must evaluate whether the offers are suitable for your brand strategy, and identify the types of offers that best fit your brand. Anyway, to build an e-commerce business, you’ll have to test a lot of approaches to understand what works best. The best approach is to choose a goal for each campaign and each offer, test gently, and measure the results.
Types of Promotions and Offers
You have several types of promotions and offers available to you. Let’s take a look at the types of offers that are often used:
Percentage Discount –The most popular way to offer discounts is to offer percentage discounts. This can refer to discount percentages such as 5% or 10%, larger discount percentages such as 20% or 25% that will generate more sales, or even higher discount percentages such as 50% or more for the old merchandise or the one you cannot sell.
Discounting a monetary value – Offers based on a monetary value can be positioned as a credit. This will make people feel like they are losing money if they do not use it. In some studies it has been shown that the number of purchases resulting from money-based offers can be more than 175% higher than the percentage-based offers.
Free Shipping – Shipping costs happen to be often cited as the main reason for abandonment of shopping carts. Offering the free shipping happens to be a great way for mitigating this and increase conversions. This offer is often used in combination with a least order size to increase the average order amount.