At some point of time, every ecommerce retailer feels the unavoidable urge to boost their traffic and drive hefty revenue as well as customer loyalty. This is where promotional discounts make perfect sense.
Discount offers, coupons and deals help to lure new prospects into making a purchase and keep repeat customers. Of course, retailers have to be smart about when and how to distribute offers and discounts in order to use the promotional strategy to their advantage.
The Stats behind discounting
Coupons and discounts have the potential to exhilarate customers.
Studies show that up to 50% customers only make a purchase when there’re coupons on offer. Research also revealed that 90% of discount users insisted on revisiting retailers that offer coupons and discounts while 57% said they would abandon their purchase if there are no discounts.
Then there are those shoppers who spend a significant amount of time each week searching for online shopping deals, coupons and special offers. Retailers can utilise this opportunity to generate terrific sales and revenue by launching exclusive offers congruent with targeted consumers.
In addition, here are different types of coupons and discounts you can launch for attracting customers.
To offer the buyers a reason to come back. This type of incentive promotes repeat purchases.
Add to cart discounts
Instant discounts help decrease cart abandonment to a great extent.
Free shipping and delivery can encourage hesitant customers to complete their purchase.
A gift with a purchase give shoppers a reason to spend more while assisting in moving surplus inventory.
This can be a worthy incentive for customers who can easily use two of similar products. BOGO can be offered when sales (of a certain product category) are dropping or to increase average order value.
To sum up
Here are different ways ecommerce stores can benefit from promotions:
- Boost customer loyalty and happiness
- Increase customer acquisition
- Promote newly-launched products and move slow-selling products
- Encourage repeat purchases
- Move excess inventory
When planned and deployed appropriately, discounting can be a great tool to acquire new customers, drive sales and reinforce customer relationships. Of course, you will need a Magento specialist to strategically plan and deploy promotions and make the most out of your approach.
Remember that there are several Magento developers and experts who specialise in Magento web design and development. Be sure hire one who can not only help to create a robust promotional pricing strategy but assist in driving conversions and revenue in the long-run.