Offers can be critical to getting people to respond to your marketing, and not every offer will motivate every buyer. The two have to be properly matched. Do you put as much thought into the offer as you do into your list, your creative, and your message? Does that offer have a negative impact on margin? If so, can you live with that?
Let’s suppose you offer a $10.00 off coupon. You could increase margin by tying that to a higher overall cart value. So, instead of $10.00 off, the offer becomes $10 off of $50 or more. Or buy two or three of a product and receive a free item. This encourages higher spending by the customer. Offers can be structured by segment, to walk people gradually into higher spending levels.
Personalized discounts are another option to consider. Presenting offers on items the customer has purchased in the past for the same or similar items works well. Pet and grocery stores utilize this concept really well. If you have a dog and have purchased a particular type of dog food from them, they will send you offers on that dog food as well as possibly offers on a dog bed, toys, or more. Grocery stores encourage you to continue shopping with them by sending coupons based on the items you regularly purchase. By doing this, they ensure they will have a higher response rate from their customers and return visits.
Keep in mind that all offers need to be tested so that companies can see the highest response rates. Test different offers with different timing to the same audience to see what responds best. Also test different cross-sells and discounts across your different audiences while maintaining your margin on products. If you are looking to acquire new customers, then you will likely need a stronger offer to get them to switch from a competitor than an existing customer who is already shopping with you. The point is to match the offer to your specific audience. One size doesn’t fit all.
Need some help with offer ideas? Talk to us about getting the right match for your next campaign.