There are several overall types of discounts and offers you have at your disposal. Let’s take a look at the most common:
- Percentage Based Discount – The most popular way to offer discounts is percentage based discounts. This can include small incentive percentages like 5% or 10% off, larger discount to really drive sales like 20% and 25% or large percentages like 50%+ to liquidate merchandise that isn’t moving or old.
- Rupees Value Discount – Offers that are based on a rupees value can be positioned as a credit. This makes people feel like they’re wasting money if they don’t use it. In some studies, redemption of rupees based offers vs. percentage based offers can be as much as 175% greater.
- Free Shipping – Shipping costs are often cited as the number one reason for shopping cart abandonment. Offering free shipping is a great way to mitigate this and increase conversions. Often this is used in conjunction with a minimum order size to help increase the average order value.
- Free Gift – A free gift with a purchase can be a great way to provide additional value to customer. If used strategically, it can also be used to increase average order size and/or to get rid of product that isn’t moving.