E-commerce and RetailMarketing Infographics

The Benefits of Testing Coupons and Discounts

Do you pay a premium to acquire new leads, or offer a discount to attract them? Some companies won’t touch coupons and discounts because they fear devaluing their brand. Other companies have become dependent upon them, dangerously reducing their profitability. There’s little doubt whether or not they work, though. 59% of digital marketers said discounts and bundles are effective for acquiring new customers.

While discounts are extraordinary at driving short-term gains, they can wreak havoc on your bottom line, and train every customer never to buy at full price. That’s not to say brands shouldn’t discount at all — sophisticated marketers are now focused on deploying discounts strategically vs. treating them as one-off conversion machines. Jason Grunberg, Sailthru

The key to deploying coupons and discounts is testing them. 53% of digital marketers conduct advanced A/B or multivariate testing. Observe conversion rates, channels used, purchase frequency, average order value and lifetime value of the customers that were acquired through coupons and discounts.

It all comes down to varying the value, bundling, and frequency of the discounts until you find a the right combination that attracts and retains customers without breaking the bank!

Coupons and Discounts

Douglas Karr

Douglas Karr is a fractional Chief Marketing Officer specializing in SaaS and AI companies, where he helps scale marketing operations, drive demand generation, and implement AI-powered strategies. He is the founder and publisher of Martech Zone, a leading publication in marketing technology, and a trusted advisor to startups and enterprises… More »
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