Ecommerce promotions - this is how to increase your conversions
The right promotion makes the difference between an abandoned cart and a successful purchase. Here's how to build a promotions strategy that works.
Why do employees perform
Promotions are a powerful tool for attracting customers, increasing sales, and improving loyalty. Proper planning will create an experience that drives action rather than damaging brand value.
10 ideas for effective promotions
1) Seasonal promotions
End of the year, summer, holidays, back to school, Black Friday. Match the message, collection, and clear deadline.
2) Buy-Get
Buy one, get one free, or the second one at a discount. Increases AOV and speeds up decision making.
3) Quantity discounts
Buy 3 and get 20 percent off, buy 5 and get 30 percent off - good for clearing inventory.
4) Free shipping
Above a target threshold calculated by margin. Reduces cart abandonment due to shipping cost.
5) For a limited time
Urgency works - incorporate a countdown timer on the sale page and in the shopping cart.
6) For subscribers/club members
Exclusive benefits for newsletter or customer club recipients, encouraging registration and repeat purchases.
7) Friend brings friend
Discount or gift for the referrer and friend. Acquisition of a new customer at a relatively low cost.
8) Bandalim
Special price for a set of complementary products, for example: buy a jacket plus a shirt for 20 percent off.
9) For returning customers
10 percent coupon for next purchase. One-time conversion to fixed.
10) VIP
Benefits for preferred customers, early access, exclusive products, dedicated discounts.
How to run a promotion without hurting profitability
- Free shipping threshold: Calculated by average margin and current AOV.
- Smart exclusions: Do not include products with extremely low margins.
- Urgency: timer, limited stock, unit count.
- Visibility throughout the funnel: banners, subtle popup, top bar, message on product page and in cart.
- Scaled testing: Start with an audience group or catalog segments, expand by result.
Metrics to measure during operation
- Conversion rate: Did it increase against the baseline?
- AOV: Is it growing due to bundles and quantities.
- Cart abandonments: Did they decrease after implementing free shipping?
- Net Profitability: Revenue less product cost and benefits.
- LTV: How many customers are returning following the move?
We will set thresholds, build in bundles, connect timers and coupon rules, and measure the result.