Discounts are a vital tool to help eCommerce businesses influence purchases (especially with new customers), discourage cart abandonments, and boost overall revenue growth.
Everyone likes to get a good deal, right? Discounts capitalize on the importance of perception in the buyer's decision-making process.
"Today's consumers want to feel as if they have spent their money in the smartest way possible, and to do so, they leverage deals throughout the shopping journey, including when deciding where to shop and what to buy," said Marissa Tarleton, chief marketing officer at RetailMeNot, Inc. "These discounts and promotional levers continue to be critical for retailers who want to reach new shoppers to drive incremental sales."
And this perception far outweigh other factors that determine customer satisfaction, with over 65% of consumers saying that feeling they got a good deal was more important to them than the level of customer service they received.
But, this all goes much deeper than just cost-conscious millennials taking advantage of all new choices at their finger-tips. Neuroscientists discovered that this is actually a biological response hardwired into us!
A study at Claremont Graduate University showed coupon recipients of a $10 voucher experienced 38% rise in oxytocin levels — the same “love hormone” released during labour and *ahem* after the same shared pursuits that lead to it… They felt happier, more relaxed and less stressed.
This understanding has been leveraged by marketers for years and is now elevated to an art-form thanks to developments in data analytics. This process offers critical hard data on not just store performance, but customer behaviors, and the factors that drive (and deter) their ultimate purchasing decision.
This technology delivers vital information to business owners; helping them understand their customers better, building products that serve them better, packaged in a way they are most receptive to. The end result? A scientific, data-driven approach that takes the guesswork out of their marketing efforts and delivers them a better return on investment (ROI).
The Story of Green Banana
Source: Green Banana
We’ve gone through the facts, the figures, and the science, so now let’s look at its applications in the Green Bananas case study.
Green Banana is an Israeli company specializing in novelty and designer bean bags. The company was steadily making a name for itself but wanted to improve their online conversion rates and fully capitalize on the rest of their marketing efforts.
The plan was to improve site conversions through attractive pop-ups that would not only showcase their latest promotions but also usher potential customers to the company’s main promotional page.
Thanks to Poptin — a software that allowed them to design and customize their own website pop-ups, they could do just that.
Poptin’s simple, intuitive interface enabled them to easily make new pop-ups for each of their promotions, from exit-intent pop-ups rescuing cart abandonments to email forms and promotions of their latest offers.
“We are not only looking at the level of conversions of those who clicked on the pop up but also the level of revenue that month from sales on the site”: Aviv Amitay, Green Banana.
By harnessing the psychology of discounts and the technology we now have at our disposal, Green Banana was able to:
Source: Green Banana
Influence buyer behaviours
Boosting buyer’s post-purchase satisfaction, and
Driving their revenue
Conversion rates improved up to 400% in the months that followed!
The next step for Green Banana is to double-down on these gains with new pop-ups offering coupon codes and sign-ups forms for a new Customer Club. Using data analytics, they will continue to refine their processes, optimizing their site and its conversion rates, not only for their bottom line, but to continue strengthening their burgeoning brand and the connection it has fostered with the brand community.
For Green Banana, it looks like the only way is up!
The Ease of Discount Pop-ups
Discount pop-ups are windows that pop-up to entice the browsing customer to follow through on their purchase by offering a discount (or coupon).
Discount pop-ups have long been a vital tool for online businesses, and it's easy to see why.
While fueling buyer’s perception that they are getting a good deal, pop-ups attract, direct and focus the visitor’s attention on a specific marketing offer, and then play a large part in boosting its conversion rate.
The result being a win-win situation — increased sales and increased customer satisfaction.
And for the business owner, software like Poptin’s means the pop-ups can be changed easily, without specialized technical wizardry or design skills, and customized in-line with changing marketing targets.
Some popular discount pop-up examples include:
“Buy X, Get Y free” discount pop-ups — great for selling items that complement each other or require frequent replenishment
“Spend over X to receive Y off” discount pop-ups — help upselling and boost average basket spendings
“Customer referral” discount pop-ups — let your customers do your work for you, getting two happy customers for the price of one!
“Free shipping” discount pop-ups — with almost 70% of customers considering the free shipping threshold in their buying decision, this can be an effective way to get that interest over the line and boosting the order value.
“Spin The Wheel” type discount pop-ups — these have proven to be an effective lead generator, grabbing attention and gamifying the customer experience.
“Product category” discount pop-ups — a good way to direct and incentivize purchases of certain product lines
“Opt-in” discount codes — not only boost conversions for the current visit, but help build your subscriber list for future sale opportunities.
“Limited time” discount pop-ups — utilize the time-honoured sales psychology of scarcity and urgency to drive sales.
Plenty of options are available, but the best one for your business will be dependent on your business goal and buyer behaviors you are aiming for.
Here are a 5 handy tips for best practices when it comes to using pop-ups to drive your conversions:
The best pop-ups are simple and don’t ask for too much information. They should be easy to complete in 4 or 5 seconds.
Oop-ups should be easy to close. Some businesses think that making that exit button harder to click will further encourage sales, when in fact doing the opposite and ruining any lingering chance of a sale. Always consider the customer experience!
WHEN to show the pop-up can be as crucial as the offer it includes- and it is best after the customer has had time to digest and engage with what you offer ie. Usually after a time delay or viewing several pages.
Make sure your pop-ups are aligned with the rest of your store’s look and theme. Inconsistent or jarring branding can, again, deal a critical attempt to your businesses credibility, especially with first-time customers. You don’t get a second chance to make a good first impression!
While the impact of discounts is clear, it is essential e-commerce stores do their due diligence to ensure it is the tactic that will deliver the best ROI for them. One-size-fits-all doesn’t work for marketing anymore than it does for Levi’s!
Pop-ups are a great way to convert viewers into customers if used the right way.
Not every customer will need that push to purchase, so without effort to ascertain which do, you could be leaving a lot of money on the table…
And this is where CL1CK come in.
Our software uses data analysis of your website performance and your customers behavior for optimization of your use of discount pop-ups. Launching pop-ups WHERE and WHEN they will be most effective, ensuring your marketing effort get the very biggest bang for their buck.
It can be set-up in ten mins, with a user-friendly interface designed to show you at-a-glance its impact. You simply configure it for your business and its demands, the software does the rest.
Fully automated, meaning...
LESSER time analyzing data and making decisions
MORE sales conversion and return on your marketing
If you want to start taking the guesswork (and the legwork) out of your e-Commerce marketing efforts, contact us to book a free demo and see for yourself.
Then put your feet up- you deserve it!