Double Your Revenue with Offers
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I want to discuss running offers for an eCommerce brand. Many people under utilise offers, but they can double your business. Offers can make forecasting challenging because when you find the perfect offer for consumers and your margins, it can skyrocket your business.
As part of the marketing team, it may seem like all you're doing is creating new offers. I'll cover what you need to know about offers and what to watch out for. I'll also share every offer I've encountered.
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Why Run Offers?
They can lower customer acquisition costs, clear inventory, create urgency, and generate excitement. Contrary to beliefs, offers can enhance brand excitement and encourage sharing.
The main reason for running offers is to increase revenue. They achieve this through marketing tactics like scarcity and urgency, making customers confident in purchasing from you.
The E-commerce Profit Formula
Before delving deeper, let's review the e-commerce profit formula:
Profit = sale price - tax - payment processing - CPA - cost per unit - inbound freight - pick/pack costs - last mile - average refunds
Running an offer affects every aspect of this formula. Failing to adjust metrics like MER (Marketing Expense Ratio) can lead to losses.
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Researching Offers
Researching offers is crucial. Use tools like Milled.com, AdSpy, or Trend Rocket to analyse competitor offers. Also, consider exploring Wayback Machine for archived websites.
Types of Offers
Types of offers include:
- % off (sitewide, certain SKUs, tiered)
- $ off
- BOGO (free, discount)
- Mystery box
- Free express shipping
- Bundle deals
- Subscribe and save
- Purchase to go in draw
- Gift with purchase
- Post-purchase upsell or cross-sell
- Lifetime warranty
- 100 day free trial
- Just pay shipping
- Exclusive memberships
- Loyalty program
Keep offers simple and aligned with your brand.
Key Factors for Success
Ensure your email, Facebook assets, and website are ready before launching offers. Also, consider merchandising, company alignment, and web design simplicity. Rotate offers yearly and monitor their effectiveness.
By mixing up offers and maintaining clarity, you can maximise their impact on your business.
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