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IN THEIN THEIN THE
DIGITAL DIGITAL DIGITAL
AGEAGEAGE
DISCOUNTING DISCOUNTING DISCOUNTING
IN THEIN THEIN THE
Discounts work. But it’s not enough to simply throw out an o�er and hope for the best. Find out how today’s retailers are using new strategies—backed by data and analytics—to reach the right customers with the right o�ers in the right ways.
DISCOUNTS. EVERYONE’S DOING THEM.
DISCOUNTS. EVERYONE’S DOING THEM.
DISCOUNTS. EVERYONE’S DOING THEM.
97%of retailers use
discounting as a pricing strategy.1
68%of e-commerce
retailers find it very or extremely
e�ective1
Lift in performance metrics2
NOCOUPONSS.
48%Revenue per email
34%Unique
click-through rates
27%Transaction
rate
COUPONSCOUPONSCOUPONS
BUT DISCOUNTS CAN WREAK HAVOC ON LONG-TERM REVENUE. PERSONALIZATION CAN MAKE YOUR STRATEGIES EVEN MORE
SUCCESSFUL—AND CUSTOMERS MORE SATISFIED.
ALWAYS BETESTINGALWAYS BETESTINGALWAYS BETESTINGExtensive testing is key to an e�ective discounting strategy.
51%
75%
of retailers said discounts are one of the digital marketing components they most want to personalize.3
of shoppers want a personalized experience.4
53%
SO WHERE DO YOU BEGIN?
50%
of digital marketers conduct advanced A/B or multivariate testing.6
of retailers said data-driven marketing helps them achieve a competitive advantage in customer satisfaction.7
TOP BENEFITS OF REAL-TIME MARKETING
TOP BENEFITS OF REAL-TIME MARKETING
TOP BENEFITS OF REAL-TIME MARKETING
increased marketing e�ectiveness
increased customer satisfaction and experience
increased customer retention8
67% 60%76%
TWO TYPES OF TESTSTWO TYPES OF TESTSTWO TYPES OF TESTS
Are customers respond-ing to the o�er?
Was the o�er more e�ective in the first email or third?
How did it compare to other discount levels?
Did it lift customer lifetime value?
What was the e�ect on purchase frequency?
Which channels are most e�ective?
What’s the lift in short-term average order value?
LONG TERM: DOWNSTREAM EFFECT
SHORT TERM: IMMEDIATE IMPACT
SMALL STEPS, GIANT LEAPSSMALL STEPS, GIANT LEAPSSMALL STEPS, GIANT LEAPS
CONVERSION RATES
PURCHASE FREQUENCY
AVERAGE ORDER VALUE
LIFETIME VALUE
WHILE MOST TESTS PRODUCE ONLY INCREMENTAL LIFTS, OVER TIME THEY CAN HELP DRAMATICALLY INCREASE:
NEW CUSTOMERS
NEW CUSTOMERS
NEW CUSTOMERS
NEW OPPORTUNITESNEW OPPORTUNITESNEW OPPORTUNITES===
59% of digital marketers said discounts and bundles are e�ective for acquiring new customers.9
Segmenting new customers lets you measure the e�ect of an o�er on future behavior.
BUT HOW DO YOU KNOW YOU’RE OFFERING THE RIGHT DISCOUNT?
No incentive
10%Discount
20%Discount
$20 o�$100+
FreeShipping
31%
of retailers said percentage discounts were most e�ective
22%
of retailers said free or discounted shipping10
18% of retailers said they don’t actively track success10
EXAMPLE TESTEXAMPLE TEST
Today or two weeks from now? When you o�er a discount can
a�ect long-term value.
Tailor discounts to customers based on specific channels or
search terms.
Jump-start a lagging geography or
increase market share where you’re already successful
Personalize send times to reach all customers when
they’re most likely to convert.
THE MORE VARIABLES YOU TEST, THE MORE HELPFUL YOUR DATA WILL BECOME.
THE MORE VARIABLES YOU TEST, THE MORE HELPFUL YOUR DATA WILL BECOME.
THE MORE VARIABLES YOU TEST, THE MORE HELPFUL YOUR DATA WILL BECOME.
TIMING SOURCING LOCATION DAYPART
Which is why it’s so important for your discounting strategy to reach them in the right ways.
WILL COME FROM JUST
KEEPING EXISTING CUSTOMERS ENGAGED
KEEPING EXISTING CUSTOMERS ENGAGED
KEEPING EXISTING CUSTOMERS ENGAGED
80%
20%
OF FUTURE REVENUES
OF CUSTOMERS
MOVE BEYOND “DEAR <FIRST NAME>”
1:1 personalization lets you customize every aspect of your communications
EMAIL-ONLY VISIBILITY
EMAIL-ONLY VISIBILITY
EMAIL-ONLY VISIBILITY
360-DEGREE VIEW OF CUSTOMER INTERACTIONS
360-DEGREE VIEW OF CUSTOMER INTERACTIONS
360-DEGREE VIEW OF CUSTOMER INTERACTIONS
of digital marketers cited this as their biggest e-mail marketing challenge
VS. VS. VS.
51%
TIMING IS A BALANCING ACTTIMING IS A BALANCING ACTTIMING IS A BALANCING ACT
Discounting too rarely puts customer
retention at risk
DISENGAGEMENTMaking o�ers too
often can negatively a�ect your reputation.
BRAND DAMAGE
Use predictive analytics to better understand when,
how, and how often to communicate with customers.
LEARN MORESailthru can help you reach customers more e�ectively by helping you achieve a true single customer view backed by behavioral and interest data collected across every channel.
READ THE FULL DISCOUNTING GUIDE TODAY AT SAILTHRU.COM/XXX.
CHECK IT OUT