Holiday Countdown Tip #5: Top trend – “buy more, save more” promotions
December 13, 2011 Leave a Comment
Merchants face a challenge this holiday season: protecting price margins while appealing to the discount-savvy sensibilities of shoppers. One popular way to meet that challenge are “buy more, save more” promotions, which offer a percentage or dollar amount off depending on shoppers’ total order cost. Such discounts encourage higher total order values, preserve individual item pricing, and give shoppers sought-after savings.
To maximize the effectiveness of these offers, think strategically. Craft a smart promotion by considering:
- Past customer behavior. Determine tiers of typical order amounts, and then position the “buy more, save more” offer so that buyers in each category will add that one extra item to the cart to qualify.
- Shipping costs. If you already offer free shipping above a threshold, consider the impact of layering on a “buy more, save more” discount as well.
- Cross-channel impact. If you have bricks-and-mortar locations, consider offering the discount through a printable coupon (or a scannable code on a mobile phone).
Party supply retailer Party City targeted its “buy more, save more” discount to email subscribers, giving them the option of taking the discount online or in stores. Buyers who qualified for the top tiers could also take advantage of a free shipping offer.