Ilan Hurwitz’s Post

As Black Friday approaches, the allure of discounting becomes almost irresistible. The rationale is clear: cut prices to attract the masses, hoping the surge in order volume and customer lifetime value will compensate for thinner margins. But don't throw caution to the wind and forget the fundamentals of unit economics. Our latest article shows you how to crunch the numbers before pushing discounts live, ensuring your BFCM strategy delivers real value to your bottom line 👇 https://lnkd.in/eFPRGHug

You can sell 73% more with Discount. But it is not as simple as that 😅 The discount should be strategically presented to prompt the user to convert. Communicating a promotion through a single banner on the homepage is often not enough. We should help visitors understand offers and qualify for them. 1. When using discounts as incentives for certain actions, such as signing up for a mailing list, provide the discount immediately. Providing the code on both the site and in an email will help. If the code is only provided through email, the user will need to navigate away from the site and could get sidetracked or simply get annoyed with the extra work needed to get a discount. 2. For minimum-spend promotions, sites should tell users exactly how much more they need to spend to qualify for the offer. 3. If the site offers a discount for the purchase of multiple items of the same product, users should be able to easily discover the offer and reach the minimum requirement. 4. If a discount or coupon code is offered on the site, allow users to automatically apply it by clicking on it. 5. Provide a dedicated sale section along with displaying discounted items in the appropriate category page. 6. Sometimes, promotional offers might be subject to qualifiers or restrictions. If that is the case, ensure that the offer clearly indicates what restrictions apply. Nothing is more frustrating than expecting to receive a deal, only to find out at checkout that you do not qualify. 7. The last chance to catch users’ attention and help them discover available promotions is on the shopping cart page. There they can still easily make changes to the order, so be sure to include any special offers users can qualify for, such as free shipping or discounts. The promise of free shipping frequently made shoppers add more items to their carts. 8. Users wanted to know that they were receiving any advertised specials, deals, or discounts before they entered payment information. Coupon codes should be validated and reflected in the cost before requesting payment information. It is essential that users can see savings and understand how the total is calculated.

Did you know that almost 500 BILLION dollars worth of coupons are distributed every year!? How much do you think actually gets cashed in/redeemed? 20%!? 10%!? It's actually less than 1% 🤯 In talking with CPG brands who are considering using Sampoll to immediately boost sales velocity at key retailers I sometimes hear that they're considering using coupons instead of a digital rebate to incentivize their audience and win over new shoppers. When I ask why the answer is usually something like "well bc coupons are more convenient for the customer!", which in fairness is sometimes true (assuming they're not printed coupons that take 3 weeks to show up after you sign up). That said - there are significant differences between the two that are critical to consider. So let's break it down: 1️⃣ Setup & Distribution Coupons (either digital or physical) typically require sign-off and coordination from individual retailers. Digital Rebates in contrast do not require approval or participation from retailers and can be deployed anywhere, anytime. 2️⃣ Retailer Buy-In (Part II) Because rebates are provided to the customer directly by the manufacturer, the retailer's pricing and margins are unaffected and the promotion does not directly reduce sales revenue (from the retailers perspective). Coupon scans, in contrast, are directly visible to the retailer and typically reduce sales revenue. 3️⃣ Redemption Two points here. First - I'll admit that redeeming a traditional rebate can be a relatively tedious activity, esp if it's a mail-in rebate. But it's 2024 people! We can provide "rapid rebates" now that get immediately paid out directly to Venmo/Paypal/Zelle etc and all that's required is snapping a quick pic of your receipt. It takes less than 20 seconds. So I'd argue it's almost a wash as far as convenience is concerned. Second point here is YUUGE. The coupon, specifically a 100% OFF coupon, means that the customer effectively has NO skin in the game. They never need to open their wallet and pay for the product up front, and because of this you might end up attracting a relatively large number of low quality shoppers vs folks that are genuinely interested in your product. 4️⃣ Real Customer Data A (Sampoll powered) rebate program captures tens of thousands of real first-party data points including contact info and all sorts of demographic/psychographic insight. Beyond this, because we're capturing proof of purchase (a physical or digital receipt), we can uncover god-tier insights including shopper basket data, what else was purchased, etc, so you can identify purchasing patterns and understand your customer like never before. Why let the retailer have all the fun? There are obv layers to this! As a founder/brand manager/etc why else would you choose one or the other? #rebates #coupons #shoppermarketing #consumerpackagedgoods #loyaltyprograms

Discounts are not just deals; they are a retailer's investment in a long-term relationship with their customers. - 🛍️ A staggering 63% of merchants are now offering discounts for subscriptions, proving that reduced prices are more than a trend; they're a strategy. - 💡 These promotions are not just about attracting new faces; they play a crucial role in creating a loyal customer base. - 🔄 By providing exclusive deals, retailers are not just saving you money; they are fostering a sense of belonging among their subscribers. - 🌱 Loyalty and repeat business are the natural outcomes, growing the retail ecosystem sustainably. How do you think these subscription-based discounts influence your decision to stay with a retailer? #discounts #customerretention #valuemaximization

Online Retailers Embrace Promo Codes as a Game-Changer in Discounting - https://lnkd.in/gR42jvRr If you're in the online retail space, you can appreciate the value of online retailers promo codes. See more below.

In an effort to court customers in a competitive market, online brands and retailers have increased the amount of promo codes they offer. https://ow.ly/h4qM50SG3ac #retail #ecommerce #coupons

Price matching taps into the consumer’s desire for the best deal. According to a survey by RetailMeNot, 80% of consumers say they are more likely to make a purchase if they know a retailer offers price matching. The key reason? Convenience. Shoppers don’t have to scour the internet for better prices—they know they’re already getting the best deal from you. ⚖At its core, price matching is when a retailer agrees to match or beat a competitor’s price for the same product. In the article below find out if price matching is right for your eCommerce business ⬇ ⬇ ⬇ #pricematching #competitorpricemonitoring #pricing #retailpricing #ecommercepricingsolution #pricingstrategy

Last week, we explained how channel conflicts hurt your brand. This week we'll tell you what you can do to avoid them! If you manage to balance your own eCommerce stores and other online distribution channels, you can protect your own margins and those of your retailers, while also protecting your brand's value proposition. 🚀 Read what you can do to turn channel conflicts into opportunities here https://hubs.li/Q02s67M90! #ecommerce #digitalshelf #marketplaces

Just had a great discussion with my retail tech team on this recent insight, shared by Sam Hollenbeck. In the battle to win over customers, online brands and retailers are ramping up their promo code game. 🛒🔍🌟 Online retailers offering 31% more coupon codes than last year. “The data underscores a growing reliance on these incentives by both consumers and retailers amid competition and economic factors such as inflation and cost of living,” said ChainStorage. This rise in coupon issuance reflects consumers' ongoing efforts to save money as #inflation eases. Read the full article here: https://lnkd.in/gckfstNZ #RetailTrends #Ecommerce #RetailData #ConsumerInsights

One of the topmost fears of e-commerce brand managers when it comes to #digitalshelf optimization is price erosion. 😰   Brands combat price erosion in online marketplaces by: ➡️Understanding the Motivations of a Price-Sensitive Consumer ➡️Reviewing Distribution Strategies ➡️Monitoring MAP Violations Learn more about the adverse effects of price erosion on the business's profitability and how crucial it is to monitor MAP right here: https://lnkd.in/dner9T-x