Gaining new customers isn’t simply about having an eye-catching website or trending products; it’s about gaining online shoppers’ attention and building loyalty. That’s where promotions come into play, from discount codes and digital rewards to social media exclusive discounts. Promotions are an integral part of a successful ecommerce strategy.
Almost every ecommerce retailer uses promotions and for good reason, they work. In a survey by RetailMeNot, 94% of consumers search for a promotion when shopping online. In this blog post, we take a look at how promotions are more than just about offering a good deal. We explore how they help businesses bring in new customers, keep them coming back, and ultimately stay ahead of competitors.
Most online retailers offer a variety of discounts and promotions throughout the year. Here are ways that promotions can benefit online retailers:
New Customer Acquisition
Providing promotions, seasonal sales, and shipping incentives proves to be effective in attracting new customers. Shoppers who browse multiple sites to compare product pricing are more inclined to convert when a site offers a promotion. New customer promotions are a seamless way to convert new shoppers into loyal customers. RetailMeNot found that 80% of survey participants were more likely to make a first-time purchase when presented with an enticing promotion.
Increased Ecommerce Sales
Increasing loyal customers in turn, helps to boost the total volume of ecommerce sales. While promotions might seem to be potential revenue reducers, the increase in shoppers effectively counterbalances the discounts. Retailers can use promotions to incentivize cross-selling and upselling, which helps increase average order value (AOV) while simultaneously decreasing abandoned shopping cart rates.
Strengthened Marketing Strategy
Including ecommerce promotions in your marketing plan is a valuable way to improve your overall strategy. According to a study by Blue Corona, promotional emails convert at a rate of 66%, surpassing social media, direct mail, and other channels.
When choosing promotional strategies for 2024, it is important to understand what motivates shoppers. As online shopping has evolved, so has buying behavior. To effectively secure the attention and loyalty of customers, businesses must refine their approaches. Here are promotions that convert modern customers:
Instant Digital Rewards
Modern shoppers love instant gratification. Loyalty points, digital cash back, mobile app rewards, and digital experiences are ways to retain loyal shoppers. These incentives not only provide swift satisfaction but also help create a dedicated customer base. By providing immediate benefits, retailers create a mutually beneficial relationship that encourages customers to make repeat purchases.
Offering exclusive promotions via social media helps streamline the customer acquisition process. Marketing is all over social media, however, exclusive social promotions create a straightforward way to entice impulse shoppers. Social media influencers can also use their reach to amplify a promotion’s impact and convert casual shoppers into active buyers. Community building makes social media a key driver in online promotions.
AI can be used to analyze customer data and open avenues for implementing hyper-personalized marketing campaigns. AI-driven personalization offers a deep understanding of a customer’s preferences and shopping behaviors. Customized promotions attract shoppers and significantly improve their effectiveness.
Platforms like YouTube, TikTok, and Amazon allow brands and influencers to livestream alongside products for real-time engagement. Retailers can take this further by including exclusive promo codes for livestream viewers. The combination of entertainment, product information, and promotional offers helps convert viewers into buyers.
Ecommerce promotions help retailers capture new customers, boost sales, increase loyalty, and enhance overall marketing strategies. In 2024, retailers should focus their promotions on customer-centric strategies, including the instant gratification of digital rewards, customer acquisition via social media, hyper-personalized marketing with AI, and immersive engagement through livestream promotions. When combined, these strategies help ecommerce businesses maintain success among their competitors, allowing them to capture the attention of modern shoppers and encourage repeat customers.
