Customers have an undeniable fondness for shopping discounts. Today, Boutir is here to share 10 highly effective online store discount strategies that can help you unlock the full potential of your promotional efforts.
Customers have an undeniable fondness for shopping discounts. When navigating the vast landscape of e-commerce platforms, product pricing and the allure of discounts play pivotal roles in shaping their purchasing decisions. Savvy online brands are well-aware of this fact and frequently roll out diverse promotional campaigns. These initiatives are designed to drive a surge of traffic to their stores and significantly boost sales within a short span.
However, with a dizzying array of promotional strategies at their disposal, merchants often grapple with the challenge of identifying the most suitable discount approach. Today, Boutir is here to share 10 highly effective online store discount strategies that can help you unlock the full potential of your promotional efforts.
4 Common Motivations for Online Store Promotions
For online stores, promotions present a double-edged sword. On one hand, they can chip away at profit margins, and overly generous discounts might condition customers to only make purchases when prices are slashed. But, if merchants artfully balance costs and profits while implementing well-thought-out promotional strategies, they can mitigate these potential pitfalls and achieve the following objectives:
1. Grab Attention
E-commerce research consistently shows that a significant number of customers are highly price-sensitive. This is why many merchants capitalize on store openings or new product launches to offer time-sensitive discounts. Such offers not only seize customers' attention but also trigger conversations, exponentially amplifying the promotional impact.
2. Increase Sales
Reflect on your own shopping experiences. Have you ever been intrigued by a product but hesitant to buy, only to pull the trigger the moment a discount was available? Promotions function as a powerful catalyst, exploiting customers’ Fear of Missing Out (FOMO) psychology. This prompts them to place an order promptly before the limited-time deal vanishes.
3. Clear Out Inventory
To keep their online stores fresh and appealing, some merchants regularly introduce new products. However, if sales fall short of expectations, excess inventory can become a financial and logistical headache, straining cash flow and consuming valuable storage space. Promotions come to the rescue in such situations, enabling merchants to swiftly unload stock and relieve operational stress.
4. Retain Members
Ogilvy Consumer Experience conducted a comprehensive survey across 13 global markets, and their findings, published in the report “The Evolution of Customer Loyalty,” revealed that over half of the respondents indicated that shopping discounts and membership rewards can strengthen their loyalty to a brand. This underscores the fact that offering exclusive shopping perks to members can enhance their brand affinity and foster a community of loyal customers.
Although promotional discounts come at a cost, when used wisely, their benefits far outweigh the drawbacks. To maximize their impact, merchants should first determine the most appropriate type of promotion based on their business requirements. Here are nine common online store discount strategies, curated by Boutir, to assist you in finding the perfect fit for your brand:
Example:Buy 2 of the selected products for $100 each, buy 3 for $90 each. Benefit:Encourages customers to purchase multiple units simultaneously, which not only boosts sales volume but also helps in extending customer retention as they stock up on items they like.
Example:Enjoy 10% off the entire order on your first purchase. Benefit:This gesture signals to new customers that the merchant values their business right from the start, cultivating a positive brand image and enticing them to make their initial purchase.
Example:Members who spend $800 or more enjoy 20% off the entire order. Benefit:By setting a relatively high spending threshold for the discount, it motivates customers to increase the size of their orders to reach the discount eligibility. This, in turn, raises the Average Order Value (AOV).
Example:Spend $300 or more to enjoy a $15 shipping discount. Benefit:A study by the Baymard Institute has identified high additional costs, such as shipping fees, as the most prevalent reason for cart abandonment. Offering shipping discounts can be an effective way to reduce cart abandonment rates, as customers are more likely to complete their purchases when they feel the overall cost is reasonable.
Example:Spend $500 or more to receive a free gift (Y). Benefit:For products nearing their expiration or in need of clearance, this approach is more effective than slashing prices drastically. Customers view the item as a bonus rather than an added expense, making them more receptive to the offer.
Example:Purchase item X to unlock a special discounted price for an additional product. Benefit:Offering a direct discount on a product might make customers question its quality. In contrast, an add-on discount sidesteps this perception while still driving sales by encouraging customers to buy more related items.
Example:Purchase items X + Y together to enjoy a 20% discount. Benefit:This strategy encourages customers to buy related products as a package, like shampoo and conditioner. It not only increases the value of the purchase but also reduces the likelihood of customers turning to competitors for individual items.
Example:Buy any 2 items from the X series to get 20% off, or 3 items to get 30% off. Benefit:This creates a sense of loss aversion among customers. They are motivated to buy in larger quantities from the same product series to take full advantage of the discount, thereby increasing the average order value (AOV).
Example:Use a promo code at checkout to get 20% off. Benefit:Merchants can tailor different discount codes for various customer segments. This provides flexibility in discount structures and also allows for better control over the number of redemptions.
10. Birthday Campaign
Example:Enjoy a one-time 20% discount in birthday month Benefit:This allows merchants to provide a special birthday offer for designated loyal members, which encourages purchase and enhances customer loyalty at the same time.
4 Major Online Store Promotion Strategies
Boutir now supports the implementation of all ten discount design methods mentioned above. With just a few straightforward settings, you can roll out these promotions on your online store! Looking to supercharge your promotion results? Boutir merchants should also take advantage of the following four promotional features to achieve more with less effort:
1. Shoppable Live Streaming
Promote a wide range of products and time-sensitive offers through live streaming on your online store. Simultaneously broadcast the live session across major social media platforms to drive traffic to your store and boost sales. Live streaming creates an interactive and engaging shopping experience. It allows customers to ask questions in real-time, see products in action, and feel a sense of urgency with limited-time offers, all of which can lead to increased sales.
2. Email Subscription Reminder
Add a “Subscribe to Email Newsletter” widget on your online store’s homepage. This enables members to receive the latest promotional updates and live streaming event notifications. By building an email subscriber list, you can directly reach out to interested customers. Email reminders keep your brand top-of-mind and increase the viewership of your promotional campaigns, leading to higher conversion rates.
3. Tiered Membership Pricing
With tiered member pricing, merchants can set exclusive prices for different membership levels. Higher-tier members are able to purchase designated products at more favorable prices. This encourages customers to upgrade their membership levels to access better deals, fostering a sense of loyalty and long-term commitment to the brand.
4. Discount Promotion Page
After setting up an advanced mix-and-match discount campaign, the system will automatically generate a dedicated promotion page on the online store. This makes it easy for visitors to access all the details about the promotion, such as eligible products and the promotion period. A well-organized promotion page can enhance the customer experience and drive more conversions.
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