Online store offers can be an effective tool for not only customer acquisition but also for customer loyalty. However, it’s important to consider your overall brand strategy before you begin offering discounts.
If you want to position yourself as a higher-end brand or if you have slimmer margins, you may want to consider sticking to customer loyalty offers as opposed to weekly sales. On the other hand, if you have healthy margins, deep discounting and daily or weekly sales might be better for hitting your goals.
Ultimately, you need to consider if offers and which type(s) of offers are right for your brand. Building an online business will generally involve a lot of experimentation to understand what works best. The best approach is to choose a goal for every campaign and offer, start small, and measure the results.
Percentage-based discount 📊
One popular way to offer discounts is through percentage-based discounts. This can include smaller incentive percentages like 5% or 10% off, larger discounts to really drive sales like 20% and 25%, or significant percentages like 50%+ to liquidate merchandise that’s old or isn’t moving. You can also easily apply these discounts to multiple collections, products, and locations in Shopify, or offer them based on a specific purchase, like “Buy two sneakers, get 50% off any sweater.”
Dollar value discount 💰
Dollar value-based offers can be positioned as a credit. This makes people feel like they’re wasting money if they don’t use it. Pair one of these with a minimum purchase amount to increase its impact, like “Spend $200, get $20 off.”.
An easy trick to keep in mind when deciding between a percentage or fixed amount discount for a specific product is the "rule of 100". If your item is less than $100.00, use a percentage discount; if higher, use a fixed amount discount. This is a psychological trigger that will result in the highest perceived value for your customers.
Free shipping 🚚
Shipping costs are one major reason for shopping cart abandonment. Offering free shipping is a great way to mitigate this and increase conversions.
Use free shipping in conjunction with a minimum purchase requirement to increase your average order value, which you can set up as a shipping setting in Shopify. You can even combine your free shipping offer with other seasonal promotions, like a 20% discount code for email subscribers, to increase the value of your offer.
Free gift 🎁
Free gift 🎁
A free gift with a purchase can be a great way to provide additional value to customers. If used strategically, it can also be used to increase average order size and/or to get rid of product that isn’t moving. You can set a minimum purchase requirement or a volume requirement using a Buy X, Get Y discount in Shopify to offer a free gift for orders over $200, or once someone buys 5 items.
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