WEEKLY TOP 10'S
Top 10 most effective type of promotions
1. Percentage-Based Discounts
This is one of the most popular and most used types of promotion. It has advantages and also disadvantages. Starting with the pros, this kind of offer makes your customer’s decision easier when they are researching multiple competitors. It can be a decisive factor when it comes to buying.
A negative part of it can be the client mistrust. Some of the people prefer to buy a full-price product instead of a discounted one. This is happening because, over the years, many companies prioritized quantity over quality.
People might have doubts when buying a discounted product because, for them, it means it is a low-quality one. As long as you make yourself known for the quality of your products and gain brand ambassadors that can sustain this idea, this won’t be a problem for you.
2. Dollar-Value Discounts
Dollar-Value Discounts work better when they are applied to amounts bigger than $100.
Psychologically speaking, people are reacting better to fixed values than percentage offers when we are talking about more money.For example, “Get $30 off, when you spend $300” works better than “Spend $300, get 10% off”.
If you are wondering why, because in the end, it’s the same offer, the reason behind it’s that customers don’t want to waste time doing calculations, and their first impression is that $30 is a better deal than 10% off.
You can read more about how discounts work in the article “The psychology of discounts”, written by Yoast.
3. Buy One Get One
There are two kinds of offers that we frequently see: “Buy one, get one free..” or “Buy one, get a discount for the second one..”. Obviously, the first example, with a free product, works better because you get more out of it.
Also, most times when it’s offered an extra discount for the second product, it is applied for the less expensive one. Some people might not be interested in two products that don’t have similar prices, or you could experience a low conversion for the less expensive products.
This type of promotion is mostly used when brands have big stocks, or maybe a new season is starting, and they want to change stocks with new ones.
4. Bundled-Discounts
Instead of selling just one product, you sell packages with more products at a better price. Bundled discounts are useful because they increase the number of products you are selling and at the same time you encourage people to try different products as well.
If they like the new products, there are big changes to buy them again in the future. You can also use this type of promotion to sell popular and less popular products together.
5. Coupons
Coupons are a way of rewarding loyal customers. Giving your customers special offers, makes them feel appreciated, and gives them a reason to rebuy from you, especially when they are fans of your products.
Most times, coupons include a code that people can use on their next purchase for an extra discount. Think about segmenting your clients by amount spend, and award them with an exclusive offer.
As for new clients, coupons can be seen as a push to visit your online store. Think about using coupons also for customers that had a bad experience with your online shop. It is a way to say: “Sorry for the inconvenience we created” and keep them as happy customers.
6 . Event/Holiday Discounts
Many people are waiting for special events or holidays to buy products from their shopping list. Customers always tend to shop more around the holidays, so make sure to take advantage of this opportunity to sell more products. Even though Christmas remains the top shopping period, Black Friday, and Valentine’s Day also needs your attention.
Did you know that people start to plan for Christmas since the beginning of the summer and the average Black Friday shopper spends $313.29 on sale items?
7. Volume Discounts
Volume discounts are used more by B2B businesses, because they usually sell in mass, but B2C companies can also use this strategy for products that consumers use recurrently.
When you offer a volume discount, you reward those buying in bulk by providing a reduced price for each good or group of goods.
8. Free Shipping
Studies show that high shipping costs can significantly increase the percentage of cart abandonment. Therefore, offering free shipping can increase sales.
The best solution for your business is to decide on a minimum value for free shipping to cover your expenses for packaging/delivery costs, and at the same time, still have a profitable offer.
Even though customers avoid buying from stores that don’t offer free shipping, this is not a type of promotion that will convince them to buy from you. Nowadays is kind of expected from you to offer a free shipping deal.
9 . Competitions
Competitions can help you increase brand awareness or make a list of e-mail addresses from interested people. Using E-mail Marketing campaigns, those leads can be turned with the right strategy, into sales.
People like free stuff and they will enter your competition even though they don’t have a special need for your product in that exact moment. It is a great way to promote your products at a low cost.
10. Free Gifts
Free gifts are a great way to increase sales volume. You can convince people to buy from you if you offer them a free product with a minimum spend.
This strategy can also be used to sell products that didn’t have a great impact on people and didn’t move. Another reason for using this type of offer is to promote a newly launched product and get clients to try it.
Choose the right offer
Offers and discounts work differently for each business. Ideally is to start with a goal in mind, define a strategy, and test the right solution for your objective.
The purpose of creating special offers is not only to increase your sales but to get people to trust your business and become loyal customers.
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