In today’s competitive landscape, eCommerce businesses constantly seek effective strategies to stand out. Using promotions on your eCommerce store is a proven technique to draw customers in and increase sales. They are a powerful tool that—when used correctly—can transform performance.
With 20% of retail sales happening online, it's crucial to strategize to improve your business and maintain success. In particular, social media plugs have been hugely influential in gaining customers. 9 in 10 people buy from brands followed on social media. So, you need to be able to incentivize your customers from the start.
In this article, we first explore the benefits of promotions for your eCommerce store. Following this, we delve into the types of offers are effective.
Top reasons why promotions are important in eCommerce
So why does using some promotions on your online business matter? What can it do for your eCommerce store?
Here, we will discuss why promotions are important for eCommerce businesses, as they help attract new customers. And also, they help boost retention rates, foster long-term loyalty, and offload inventory. In no time, you’ll understand exactly why offering discounts is so important, and how you can easily do it too!
1. Attract new customers
Using promotions on your eCommerce store is foremost a powerful tool for attracting new customers. In order to grow as a business, you need to bring in shoppers effectively. A well-timed discount or special offer can grab a potential buyer’s attention who may have otherwise overlooked your store. As we’ve said already, this is incredibly important in such a competitive retail market.
New customers are often more cautious when trying out a new online retailer. Promotion events can therefore help to lower the perceived risk. This will make them more likely to give your store a chance. An initial positive experience can set the stage for long-term customer relationships.
2. Boost retention rates
It makes sense, then, that boosting customer retention rates is so important. While targeted offers to new customers can be very effective, they are equally valuable at retaining existing ones. Regularly offering deals or discounts to your existing customer base shows them you value their loyalty.
This sense of appreciation can go a long way in keeping engaged customers coming back. They will be the backbone of your Shopify sales long-term. Additionally, rewarding repeat business increases the sense of belonging, and therefore the likelihood of brand loyalty.
3. Boost long-term loyalty to your eCommerce store
Building long-term customer loyalty is therefore a goal that every eCommerce store should aspire to. Promotions play a pivotal role in this effort. By offering special deals and discounts, you create a bond that goes beyond transactional relationships.
Customers who feel appreciated and connected to your brand are more likely to become advocates for it. This can come full circle and attract new customers too. Luckily, with our customizable apps GetSale and EasyGift, you can easily tailor discounts to loyal customers. Using data analytics from the apps, you can understand their purchasing behavior to do this!
4. Offload inventory and circulate stock
Finally, using promotions as a tool in your inventory management and stock circulation is very beneficial to your business. In the dynamic world of eCommerce, overstocked or seasonal items can tie up valuable resources. So it is very important to optimize your inventory management.
Warehouse space can be at a premium, and you need to get stock moving to avoid losses. Running clearance sales or bundle deals offer an effective solution by enabling you to quickly offload excess inventory. Not only it frees up storage space but also generates revenue you can reinvest into your business.
Which types of promotions could you use on your eCommerce store?
There are many deals you could implement in your store. We wrote a detailed article about the Best Shopify Store Promotions. Check it out for a thorough analysis. However, this section gives you a quick run-down of a few of the most popular and easiest to use.
1. Percentage discounts
This classic promotion involves offering customers a certain percentage off the original price. For instance, a 20% discount on selected items. You could even offer a student or armed forces percentage discount.
This can be a powerful incentive to make a purchase, simple yet effective!
Our Shopify Bulk Discount Manager App, GetSale is a quick way to implement this type of promotion. You can easily integrate customized bulk discounts or promotions on individual products in a stress-free way.
2. Buy-One-Get-One (BOGO) deals
BOGO deals offer customers the chance to get additional items for free or at a reduced price with a specific purchase. This not only encourages immediate sales but introduces customers to other products in your catalog. Our Auto Add to Cart Shopify App, EasyGift is a straightforward, customizable way to integrate BOGO deals to your store.
3. Free shipping
High shipping costs can often deter potential buyers from checking out their carts. Offering free shipping can significantly increase the likelihood of a sale. You can do this either universally, or for orders above a certain value. However, you need to consider carefully whether this is a suitable and sustainable option for your Shopify store.
4. Limited-time sales
Creating a sense of urgency through limited-time sales promotions can drive customers to take immediate action. Flash sales, holiday specials, and seasonal discounts can all leverage this psychological trigger.
Using a Shopify discount app like GetSale can really boost the conversion of your store when doing limited-time offers. To help you choose the right app for you, we have referenced in an article, what to look for when choosing Shopify Apps for Black Friday, go and check it out!
5. Loyalty programs
Loyalty programs reward repeat customers with exclusive discounts, early access to sales or points redeemable on future purchases. These programs are important for encouraging shoppers to keep coming back and are an easy promotion type to run.
6. Abandoned cart discounts
When customers leave items in their shopping carts without completing purchases, you can send personalized discounts. This can incentivize them to finalize their order. In doing so, you’re ensuring those wavering on purchases are more likely to follow through.
Using promotions on your eCommerce store is therefore important in several key ways. Competition online is fierce, and consumer preferences are constantly evolving. It is therefore a strategic choice that can yield remarkable results for your business.
You must, however, strike a balance between promotions and maintaining the value of your products and brand. Excessive discounting can cheapen your image. Used thoughtfully, however, they can be a win-win for both your store and your customers. In this way, you can create a thriving eCommerce ecosystem to stand the test of time!
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