We've all been there - shamelessly sacrificing our emails or phone numbers to get an extra 20% off when shopping online. If you're an eCommerce merchant, this strategy can be a blessing and a curse - but when done correctly, discounting can, of course, be effective. After working with over 10,000 brands including Hanes, NCR, Everlast, and The Economist, we have been able to prove that there are quite a few other ways to create customer incentive without sacrificing your bottom line. Below are the top five strategies on how to do just that.
1. Contests & Giveaways
2. Shipping Upgrades
Free or expedited shipping can be offered a few different ways: as a membership perk, a brand perk, or when the order value reaches a certain amount. However, unless you’re major shipping giant like Amazon or Zappos, make sure you use this approach conditionally, the last thing you want to do is train your customers to expect a perk you can't always offer.
3. Free Promotional Items
Everybody loves a freebie! The promotion approach is a good one too because there is no discounting off your cash cow products, samples are typically less expensive than offering a discount, and it can lead to incremental purchases of the products you give away.
All of these strategies are effective, just make sure your fulfillment team has the ability to execute it successfully!
4. VIP Status
Everyone wants to feel special, and there are great advantages to rolling out the red carpet for your customers. It works because once it's in place, a VIP program doesn’t incur additional cost and it helps segment out your most valuable customers.
Just remember to keep the members educated and engaged as it is going --customers don't respond well to changes that aren't in their favor.
5. Loyalty Points
However, like VIP programs the rules are hard to change once they are put in place, so make sure you put a lot of thought into creating one.
As you can see, there are many ways to incentivize, drive a higher conversion rate & reduce cart abandonment without discounting or couponing. I hope you learned a lot!
I’m Katie Oates, the Channel Partner Manager for AddShoppers. If you are interested in learning more about any of these examples or utilizing any of these strategies in 2016, contact me at firstname.lastname@example.org
or check out our website at www.addshoppers.com
to see for yourself.