Raise your hand if you like paying full retail price. Wait, you don’t? Obviously I can’t see you right now, but I’m willing to take a chance and assume that you do not, in fact, like paying full retail price.
As modern shoppers, we’re conditioned to be on the lookout for discounts. A quick Google search allows us to compare prices to find great deals. If we’re subscribed to marketing materials for a particular brand, we may see a mailer, or an e-mail with a discount code or promotional offer.
And let’s not forget the undisputed champ of great deal days…Black Friday. Black Friday may as well be a national holiday by itself.
Many customers won’t make a purchase unless they have a coupon in hand, or a discount code to enter at checkout.
If you’re a retailer trying to attract new customers, and cater to your loyal customers, you’ve no doubt offered plenty of discounts and promotions over time. It’s a necessary and effective tool to bring in business. You take a small profit hit from the coupon, but ideally pull in enough revenue from additional purchases to cover the cost and then some.
Discount-savvy customers are trained to wait for your coupon before they make a move. Knowing that your customers are waiting for and expecting discounts, your promotions but be strategically-delivered.
One problem you may run into is flooding potential customers with TOO MANY discounts. Sounds strange, right? A customer turned off by getting too many discounts. You may have a customer who only shops periodically, and s massive amounts of e-mails may usher them towards the ‘Unsubscribe’ button.
Another problem is that your effort to reach a large amount of customers may reach the wrong people. I don’t mean people who aren’t interested in purchasing. I mean people who WOULD HAVE purchased WITHOUT a discount.
To avoid this, try to send promotions only to shoppers that you believe need them in order to convert, and select the most relevant promotion for each person.
Try testing different promotions for your high-value customers and your new e-mail subscribers. For example, send a general discount to your new subscribers to encourage immediate action, but send each high-value shopper an email that promotes new items in their favorite category. You may find that many of those loyal customers will be willing to purchase new items without a discount.
Then you can start segmenting further. Create a segment of shoppers who have purchased in the last 90 days and run a promotion to encourage them to make a repeat purchase. Segmented push notifications are a great way to execute this strategy. Combine the high open rate of push notifications vs e-mail, and a strategic set of targeted customers, and you could see considerably more success than your broad approach promoting everything to everyone. This is another key reason mobile commerce should be part of your omni-channel strategy