Effective Promotion and Discounting Strategies for Ecommerce
Discounts and promotions tend to be tricky. The idea is to keep customers coming back to your store for more but profit margins still need to be kept high. Too many discounts can make a serious dent in your profits too.
Therefore, to get the most benefit out of these discounts and promotions, figure out clearly what you intend to achieve by using them. Let’s take a look at four discounting and promotion strategies that you can employ to boost profitability.
Benefits of E-commerce Discounting and Promotion
Discounting and promotions are great for both driving up your sales volume as well as getting the attention of customers in the midst of fierce competition. Of course, you need to set proper goals with such campaigns and not dive into them just for the sake of it. Therefore, it is important to clarify to your team just what you want to achieve with your promotion and discount campaigns. Is it more revenue or greater customer loyalty? Are you looking to drive up sales during a particular festive period (Easter, Christmas) or do you want to encourage new shoppers to spend their money on your offerings?
This is a good way to encourage customers into spending more. By bundling items together into a discount pack, customers feel like they are getting a good deal, particularly when the items grouped together complement each other nicely.
These types of discounts are primarily aimed at long-term customers. The idea is to improve customer retention as well as customer loyalty. No one likes to put in the effort into making new customers only for them to move on to some other brand’s offering sometime later and spend their money on them. So, to encourage people to shop with you in the long run, you will need to come up with impressive and exciting long-term offers that can entice them enough to keep coming back to your store for more.
This is another very popular promotion and discount strategy that many e-commerce businesses deploy. Customers really respond well to this one. As per the results of a survey, 73% of the respondents stated that free shipping is one of the most important factors under consideration when making an online purchase. So, make use of it whenever possible and feasible.
Of course, make sure that the free shipping offer you are giving works well with your profit margin and doesn’t eat too much into it. There are two main types of free shipping offers utilized. The first is the blanket wide free shipping offer, which means that there will be no shipping cost on your purchases no matter how much or how little you spend on the items in the store. The other type is free shipping after spending a particular amount of money.
As you must already have guessed, these are special offers during particular holidays such as Christmas, Halloween, or other festive days like New Year’s Eve and New Year’s Day. Again, these can be great tools to promote your stuff and brand as long as the strategy you employ nicely complements your profit margins.
So, there you have it. Four discounting and promotion strategies to help you boost your business; make use of them in the right way to grow your brand and business exponentially.