You’ve put together a marketing personalization strategy and have launched campaigns that are resonating with your key customer personas. Yet you’re still offering a sitewide discount to anyone who visits your online store. We get it - it’s easy to overlook discounts in your personalization strategy. Afterall, if it gets more customers making purchases, it’s considered a win, right? We hear this narrative a lot, but you may just be leaving money on the table with blanket discounts. By using the right discount strategy, you may just increase customer lifetime value while offering discounts to customers who need an extra push.
To create a killer personalized discount strategy, you’ll want to consider a few factors - and they all come down to understanding your customer groups and their behaviors.
Reaching the right audience
Not all personas or customer groups are price sensitive. Some customers are willing to buy with or without a discount, while others need an extra nudge to put them over the edge. Decile helps you understand which customers fall into each of these two categories, so you can provide discounts to only those customers who the message will resonate with.
Getting the timing right
Some customers are only going to purchase during the holiday season, but will only do so when they get your discount. Others may repurchase throughout the year, but the timing has to be right. Decile helps you understand where a customer is in their lifecycle, and the recency and frequency of purchases. By analyzing this information, you can better understand when they are likely to purchase again, and offer a discount to help them convert.
Discounting products of interest
There may be certain products your customers are more likely to purchase with a discount. Instead of a site-wide offer, you may choose to offer a promo code on a certain product, or line of products only. While your customers may be loyal to your line of shampoos, they may only try out the body wash with a discount offer. By targeting specific products that may be of interest, you are more likely to convert on those products, while not losing out on revenue for the tried and true products you know they will purchase regardless. Decile offers reports on product affinity for each of your top customer personas, as well as sequential purchases. These can both help you identify the products you may want to test out a discount on.
Promoting via the right channels
Don’t waste your marketing dollars on ad channels that won’t convert. Decile helps you understand which channels are most effective for your customer groups, so you can get the right ad mix in place. Maximize what’s working, and eliminate the waste.