incentivizing customers without coupon codes and discounts
TRANSCRIPT
Incentivizing Customers without Coupons
and Discounts#AddShoppersLive
I. Intro
II. Strategies
III. Re-cap
IV. Live Q & A
Agenda
When does it make sense to coupon?
Liquidating inventory
To reach economies of scale (e.g. to achieve shipping discounts, supplier volume discounts, etc.)
To grow new customer acquisition (requires you to have an accurate metric for customer LTV)
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What happens when you discount excessively?
Margin Erosion
Tarnished Brand Perception
Selling discounts instead of value
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Coupons by the numbers:
This doesn’t take into account other costs like customer support, warehousing, affiliates, etc.
Current Revenue $1,000
Margin 30%
Current Net $300
Revenue w/ Coupon $1,500
Coupon Value 10%
Margin 20%
Net w/ Coupon $300
The Right Way
To Discount
Keep it special & targeted
Don’t give coupons away for free
Don’t show discount offers to everyone
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5 Strategies
Chad LedfordChief Revenue Officer + Co-Founder
1. Contests & Giveaways
Contests & Giveaways
Pros:
● Incentive is capped and limited to 1-3 winners
● No risk of coupon leakage
● E-mail opt in rates 43% higher
● No damage to margins & perceived value
Cons:
● Requires marketing collaboration
● Requires administration / customer support time
● Local rules and regulations need to be considered
Email Capture ContestField Supply increased email captures by 42.9%
Share To WinHope’s boosted email captures by 51% & social sharing by 905%
Selfie ContestScrubs & Beyond Increased Brand Engagement
Name That ItemHope’s captured 1,977% more emails
Win Your WishlistSilver Jeans boosted sharing by 4,650% & email captures by 224%
2. Shipping Upgrades
Shipping Upgrades
Pros:
● No discounting of actual products
● A proven conversion-booster
● Can be less costly than couponing, depending on your typical coupon amount.
Cons:
● Additional expense per order
● Can create conditioning to expect free shipping
Free ShippingAn E-tailing Group study revealed that unconditional free shipping is the #1
criteria for making a purchase. 73% of customers consider it critical to proceeding to checkout.
Expedited ShippingB&N Membership includes Free Express Shipping
Members Only ShippingFree Shipping for Staples rewards members
No MinimumL.L. Bean Free Shipping - no end date
No Return Shipping Fee81% of consumers are likely to abandon the cart if the return
policy is not lenient.
3. Free Promotional Items
Free Promotional Items
Pros:
● No discounting of your standard products
● Typically less expensive than offering a coupon
● Can lead to incremental purchases of the item given away
Cons:
● Requires additional work from your order fulfillment team
● Adds incremental cost per order
Free GiftsFree 14 piece gift for orders over $19.50
Free Samples with PurchaseGreat way to build awareness of new products
Free Gift CardGreat way to cross promote other products
Extended Warranty / InsuranceAdditional value for customers
4. VIP Status
VIP Status
Pros:
● Doesn’t incur any additional costs
● Helps identify & segment your best customers
Cons:
● Can be confusing to customers - requires education
● Difficult to keep customers engaged
● Difficult to make changes without customer kick-back
First Access to New Products
Exclusive Offers for MembersUber VIP - upgraded after 100 rides
Early Access to SalesPresale tickets for top customers
Customer Spotlight OpportunitiesMake customers feel famous
5. Loyalty Points
Loyalty Points
Pros:
● Drives repeat purchases & loyalty
● Loyalty program participants are most likely to become brand influencers
Cons:
● Difficult to change once loyalty program is established… *cough* Starbucks *cough* :)
● Requires integration & setup
● Can be difficult to sync across offline and online shopping
Socially Sharing ProductsOffer points for product shares
Leaving ReviewsGet 10 Birchbox Points for each sample review
Refer-a-Friend for Points50,000 points for you - 10,000 points for your friend!
Points for PurchasesEarn 10 points for every dollar you spend
Creating an AccountGet double points when you join within a certain time period
I. Contests & Giveaways
II. Shipping Upgrades
III. Free Promotional Items
IV. VIP Status
V. Loyalty Points
Strategy Recap
Additional Questions? Follow Up:
To learn more about AddShoppers, check out our trending resources: addshoppers.com/trending-resources
To register for a Live Demo check out our schedule:addshoppers.com/live-demo/
We help the world’s top brands market to their influencers.
[email protected]@ChadLedford