What Does Every Customer Love Most?

by Kate Sadler

Kate is the Manager of Digital Production at Robofirm. With almost a decade of managerial experience she is responsible for the management of client communications and expectations to help ensure client satisfaction. She has her MBA and graduated a member of Delta Mu Delta. When she's not working, you can find her whipping up some baked treats in the kitchen and spending time with family and friends.

Everyone likes saving money, and that includes your customers. According to one study, as many as half of all ecommerce consumers only buy something when there is a promotion on the table, and that number is even higher for people under the age of 45. Shoppers between the ages of 18 and 44 are promotion-driven. In addition, almost 30 percent of ecommerce customers spend more when they are given a discount than not.

Understanding Good Online Promotions

However, promotions are not gimmicks. They take thought and planning. "A good promotion should enhance your product marketing and offer your customer an incentive; some added value that is specifically for them," says Lemonstand. "In addition, promotions can be placed at different points along your conversion and sales funnels and benefit your business by working on several levels, often simultaneously." Lemonstand explains that this multi-faceted approach works in two ways - by reducing your bounce rate and your drop-off rate. Together, the effects are exponential. "If you can reduce your bounce rate by 2 percent and also reduce your drop-off rate by 2 percent, you will get a 10 percent increase in sales."

Choosing the Right Promotions

Of course, not just any promotion will do. While the best promotion for your business will vary by which products or services you sell, any sale or discount you offer should factor in your margins and advance a specific purpose. You may use online promotions to boost sales over the short-term, reward repeat customers, attract new consumers or move older inventory. For instance, you might opt to offer a free gift with purchase to make it easier for new customers to try out your products. This way, you can move old stock (the freebie) while incentivizing new customers.

Addressing Pain Points

You can also use promotions to address customer pain points. The number one reason why customers abandon online checkouts is shipping costs. By offering free or reduced shipping, you negate that issue - and you might be able to sell more as well. "By offering free shipping, you can increase conversions as well as the size of your orders," explains JustUno. "A study by Harris Interactive and UPS found that 39 percent of customers would purchase enough to get free shipping. In addition, a study by Compete states that 93 percent of online buyers would be encouraged to buy more products if free shipping is offered." Alternatively, you could try to capture would-be cart abandoners with an exit offer. This is a promotion that is only offered to users who attempt to leave or exit your site without making a purchase.

Perception Is Everything

The nature of your promotional content counts too. Many websites use pop-ups and blinking banners to advertise promotions for their visitors or overhype their sales. Either one is a big mistake. Most people have become so inundated with spam and scams advertising using those methods that you could actually turn visitors off by resorting to those strategies. Instead, do your best to avoid ads on your site, or at least keep them subtle and unobtrusive. Sincerity and clarity are the key points to remember.

Getting Help to Get It Done Right

The right online promotions will help you attract and retain customers, as well as provide you with valuable information about your customers. Hire a Magento development specialist and you will be able to see which promotions are most effective at attracting new business, as well as discover the best ways to increase your average order size. Contact Robofirm to learn more about what a Magento developer can do for your online business.

What Does Every Customer Love Most?

What Does Every Customer Love Most?

by Kate Sadler

Kate is the Manager of Digital Production at Robofirm. With almost a decade of managerial experience she is responsible for the management of client communications and expectations to help ensure client satisfaction. She has her MBA and graduated a member of Delta Mu Delta. When she's not working, you can find her whipping up some baked treats in the kitchen and spending time with family and friends.

Everyone likes saving money, and that includes your customers. According to one study, as many as half of all ecommerce consumers only buy something when there is a promotion on the table, and that number is even higher for people under the age of 45. Shoppers between the ages of 18 and 44 are promotion-driven. In addition, almost 30 percent of ecommerce customers spend more when they are given a discount than not.

Understanding Good Online Promotions

However, promotions are not gimmicks. They take thought and planning. "A good promotion should enhance your product marketing and offer your customer an incentive; some added value that is specifically for them," says Lemonstand. "In addition, promotions can be placed at different points along your conversion and sales funnels and benefit your business by working on several levels, often simultaneously." Lemonstand explains that this multi-faceted approach works in two ways - by reducing your bounce rate and your drop-off rate. Together, the effects are exponential. "If you can reduce your bounce rate by 2 percent and also reduce your drop-off rate by 2 percent, you will get a 10 percent increase in sales."

Choosing the Right Promotions

Of course, not just any promotion will do. While the best promotion for your business will vary by which products or services you sell, any sale or discount you offer should factor in your margins and advance a specific purpose. You may use online promotions to boost sales over the short-term, reward repeat customers, attract new consumers or move older inventory. For instance, you might opt to offer a free gift with purchase to make it easier for new customers to try out your products. This way, you can move old stock (the freebie) while incentivizing new customers.

Addressing Pain Points

You can also use promotions to address customer pain points. The number one reason why customers abandon online checkouts is shipping costs. By offering free or reduced shipping, you negate that issue - and you might be able to sell more as well. "By offering free shipping, you can increase conversions as well as the size of your orders," explains JustUno. "A study by Harris Interactive and UPS found that 39 percent of customers would purchase enough to get free shipping. In addition, a study by Compete states that 93 percent of online buyers would be encouraged to buy more products if free shipping is offered." Alternatively, you could try to capture would-be cart abandoners with an exit offer. This is a promotion that is only offered to users who attempt to leave or exit your site without making a purchase.

Perception Is Everything

The nature of your promotional content counts too. Many websites use pop-ups and blinking banners to advertise promotions for their visitors or overhype their sales. Either one is a big mistake. Most people have become so inundated with spam and scams advertising using those methods that you could actually turn visitors off by resorting to those strategies. Instead, do your best to avoid ads on your site, or at least keep them subtle and unobtrusive. Sincerity and clarity are the key points to remember.

Getting Help to Get It Done Right

The right online promotions will help you attract and retain customers, as well as provide you with valuable information about your customers. Hire a Magento development specialist and you will be able to see which promotions are most effective at attracting new business, as well as discover the best ways to increase your average order size. Contact Robofirm to learn more about what a Magento developer can do for your online business.