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 in the retail promotion trick bag. The e-commerce platform just makes it more powerful, easier to deliver, and easier to redeem just like Sugarhouse promo code for iGaming enthusiast. The benefit of letting customers know about this discount via discount code is that you catch their attention much quicker.
Bundled Discounts
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. Knowing crucial info like this is paramount to helping shape your entire customer acquisition strategy. However, when planning bundled discounts, you need to carefully study which products will be bundled together.
Free Shipping
Free shipping is a popular discounting and promotion strategy many e-commerce owners opt for. According to the study, free shipping is one of the most important factors under consideration when making an online purchase. But not charging for shipping can hurt your business if you’re working with low margins or if shipping costs aren’t factored into your product prices. To make sure 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.
Holiday Discounts
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.
Contests
While contests aren’t necessarily 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, gives them giveaways and so on.
Final Take
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.