Nothing drives conversions like offers.
Offers are promotional tactics designed to drive traffic, boost sales, and improve customer retention. They can range from discounts and free shipping to loyalty rewards and bundled deals.
2 Visions Ecommerce Discounting & Promotions research found that discounts were the biggest lever to driving conversion, other than affinity (that is, people actually wanting the product). Their research found that 62% of shoppers primarily delay clothing purchases until they can secure them at a discount.
But, eCommerce promotions have a few problems:
- Reputationally, they're thought of badly - something low-cost retailers use that devalues the brand.
- They reduce margins, damaging profits.
- They harm the perceived value of specific products or all the products from a retailer.
Is there a way to use eCommerce offers without these downsides? We think there is. We call them intelligent offers.
What are eCommerce offers?
Before diving into intelligent offers, let's first define what offers are.
In the eCommerce world, an offer is a promotional strategy or sales tactic used to entice customers to make a purchase. They can take many forms, such as discounts, free gifts, loyalty rewards, etc.
The primary goal of an offer is to drive conversions and increase sales by making the customer feel like they are getting something extra or valuable with their purchase. This not only helps attract new customers but also encourages existing customers to come back for more.
Offers have been proven time and again to be effective in increasing sales and driving traffic. However, as mentioned earlier, traditional offers have downsides—they can damage brand reputation, reduce profit margins, and devalue products.
Okay, so what are intelligent offers?
Intelligent offers are a smarter and more strategic approach to traditional offers. They leverage customer data, trends, and insights to create personalized and targeted promotions that drive conversions without damaging brand reputation or profit margins.
Intelligent offers consider individual customers' unique preferences, behaviours, and needs to create tailored deals that resonate with them. This increases the chances of conversion and improves customer satisfaction and loyalty.
5 performance enhancing intelligent offers to try
Goal 1 - Increase Conversion Rates
Conversion rates are the lifeblood of any eCommerce business. You can nudge hesitant shoppers towards completing their purchase by presenting tailored offers at the right moment.
Example Offer: Targeted discounts
Use data-driven insights to offer personalized discount codes to customers who have shown a strong interest in certain products but haven't yet purchased them. This targeted approach can turn window shoppers into buyers.
Goal 2 - Reduce Basket or Cart Abandonment
Cart abandonment is a common challenge for eCommerce businesses, with an average of 69.57% of online shopping carts being abandoned. Intelligent offers can help mitigate this by addressing the reasons behind abandonment.
Example Offer: Exit campaign
Implement exit-intent popups that trigger when a user is about to leave the checkout page. Offer an exclusive discount or free shipping to encourage them to complete their purchase.
Goal 3 - Increase Average Order Value (AOV)
A higher AOV translates to more revenue per transaction. Intelligent offers can incentivize customers to add more items to their cart, increasing the overall order value.
Example Offer: Bundle deals
Create bundle deals that offer discounts when customers purchase multiple related products. This not only increases AOV but also provides added value to the customer.
Goal 4 - Reduce Stock Levels
Excess inventory can tie up capital and storage space. Intelligent offers can help move slow-selling items, turning potential losses into profits.
Example Offer: Flash sales
Run limited-time flash sales on overstocked items. Promote these through targeted emails and social media ads to create a sense of urgency and drive quick sales.
Goal 5 - Reduce time to purchase
While discounts and promotions can boost sales, they can also reduce profit margins. Intelligent offers help balance the need for promotions to maintain healthy margins.
Example Offer: Tiered discounts
Offer tiered discounts based on the total purchase amount (e.g., 10% off for orders over $50, 20% off for orders over £100). This encourages higher spending while protecting profit margins at lower purchase levels.
Do or do not, but there is a try
Intelligent offers are not a one-size-fits-all solution and may not work for every eCommerce business. But by strategically implementing them, you can reap the benefits of increased conversions, higher AOV, reduced cart abandonment, and more satisfied customers.
Regarding eCommerce offers, it's important to continuously test and refine your approach to see what works best for your specific audience.
With intelligent offers, you can create tailored and personalized promotions that drive results without damaging your brand or profit margins.
