When updating your offer, you may wonder which type is most effective. This guide outlines different offer types, their benefits, and how to choose the best one. Regardless of the option you select, ensure consistency between your site and campaign offers.
Percentage Off – Best Option
Percentage Off – Best Option
A percentage-based discount is the most effective and scalable option. Benefits include:
Encourages Larger Purchases: Customers may add more items to maximize their savings.
Boosts Return Conversions: When the offer exceeds your on-site discount, users are more likely to return and complete their purchase.
Flexibility Across Cart Sizes: The discount adjusts based on the total, making it appealing across different spending levels.
Dollar Amount Off – Strong Alternative
Dollar Amount Off – Strong Alternative
If a percentage-based offer isn’t feasible, a dollar-off discount is the next best option. Key advantages:
Provides Clear Savings: Customers see an immediate reduction in their total.
Effective for Targeted Discounts: Works well for set-price products or minimum spend thresholds.
Higher Conversions When Exceeding On-Site Offers: To maximize impact, ensure this offer is greater than what’s already available on your site.
Free Shipping - Acceptable Option
Free Shipping - Acceptable Option
If you can’t offer a direct discount, free shipping can still provide value. Consider this option if:
Your Customers Are Price-Sensitive to Shipping Costs: Shipping fees can be a purchase deterrent.
Your Site Doesn’t Offer Free Shipping by Default: Re-emphasizing free shipping may capture attention.
You Want to Re-Engage Customers: Some users may not have noticed your existing free shipping policy.
Free Gift – Acceptable Alternative
Free Gift – Acceptable Alternative
A free gift can be a great way to add value, particularly for brands that don’t typically offer discounts. Benefits include:
Enhances Customer Experience: A bonus item can make the purchase feel more rewarding.
Differentiates from Competitors: Adds a unique incentive without adjusting pricing.
Reinforces Existing Promotions: Reminding customers of a free gift offer they may have overlooked can drive conversions.
Conclusion
For optimal campaign performance, percentage-based discounts are the most effective, followed by dollar-off promotions. If direct discounts aren’t an option, free shipping or free gifts can still serve as engagement tools. Always ensure your campaign offer is aligned with or exceeds your on-site promotions for the best results.