Discounting And Promotion Strategies
Discounts and promotions tend to be tricky. While discounted pricing can certainly boost your conversion rate, it lowers returns on each conversion, lowers average order values, and can end up causing real revenue to decline. 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 look at some popular discounting and promotion strategies that you can employ to boost profitability.
Offer Coupons and Discounts
Coupons have always been a powerful tool when it comes to retail promotions. The Kooomo platform makes it more powerful, easier to deliver, and easier to redeem. The benefit of letting customers know about this discount via discount code is that you catch their attention much quicker.
This is a good way to encourage customers to spend 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. Knowing information like this is cruscial for shaping your entire customer acquisition strategy. However, when planning bundled discounts, you need to carefully study which products will be bundled together.
Free shipping is a popular discounting and promotion strategy many eCommerce owners opt for. According to a recent study, free shipping is one of the most important factors under consideration when making an online purchase. However, use free shipping carefully, especially if you’re working with low margins or if shipping costs aren’t factored into your product prices. To ensure that free shipping pays off, you can have free shipping available when an order reaches a certain amount. So, make use of it whenever possible and feasible.
These are special offers during holidays such as Halloween, Christmas, New Year’s Eve or New Year’s Day. There are lots of opportunities to offer special discounts and promotions celebrating a range of different events. The great thing about holiday discounts, especially the ones where customers come to expect some sort of offer is that they’re already in the buying mindset.
While competitions aren’t necessarily a sales promotions, they are an incredibly effective way to drive engagement and email sign-ups. Offer your visitors a chance to win a big-ticket item by entering their email address. Hold contests and encourage users to participate. Build a sense of excitement by involving them. You could give out discounts to the winners, prizes and so on.
The goal of price discounting is to strike a balance by providing an incentive that increases sales without hurting profit margins. By knowing your goals and matching it with the right type of pricing discount, you can avoid the common challenges that come with discounting and instead bring in more sales and revenue. We hope this article has helped you think further about your own promotion and discounting strategy.