coupons or promo codes are no longer new terms for shoppers, retailers, etc in marketing online. Its important role is affirmed right after the success of the discount strategy of CoCa in the 19th century.
study by Dr. Paul J. Zak (2012))
science of discount on Sale promotions.
Which discounts are optimal?
You may wonder why do online shoppers leave without buying? It is because they found a better price elsewhere, your overall price too expensive or particularly your discounts are not optimal
These factors are entirely the main determination for your success in the discount strategy for boosting revenue in marketing online.
So the raising question is Which discounts are optimal?
- Because based on the research called Just Noticeable Difference in the mid of 1800s conducting by the scientist Ernst Weber, two things are defined:
- Our sensory stimuli have limits, so we have make an addition for the amount before they decided to change their noticing on something (the coupons, or promo codes for example)
- The size of Just Noticeable Difference is also depended on the initial object size (this means we have to get all attention right from the start)
This research was taken from different participants at a time.
How to display discounts?
One of the most common and effective types of discount or sale promotion is the percentage off deal
According to Mike Catania, Chief Technology Officer of PromotionCode.org. The best way to implement this offer is storewide percentage discounts typically that create more attention and sale than even Just A 60% off clearance.
Ecosciences, $10 off or $20 off of something else) is an alternative to a percentage off. However, let base on price points, customers and the perceived value of the offer to decide the way we use the word in promotions.
There are two cases that should have been noted
For pretty inexpensive products like a bottle cost $25, it is better to offer a 40% off than $10 off, even they have the same value in discounts.
For expensive products, exercise equipment with the price of $350 for example, it would be better to discount $50 than offer the 15% off, even a 15% offer is slightly better.
Buy One Get One or Multi-buys
Regarding the common discount and promotion way, buy one get one is typical works as the way to move inventory and it is also a great option if you want to clear out a lot of stock.
How to show the customers about discounts?
Showing the products with the sale off under or beside the Initial price on the main product table is one of the best and commonly used practices.
The next way is to make a special sale and discount section inside the filter bar. It will save time for your customers to explore the best deals and discounts.
You can also make them more noticeable by adding discount badges stick on every item on the product table