— June 4, 2019
The number of businesses that operate from a strictly digital storefront has grown dramatically over the past decade. Now that virtually anyone can get online and create a website and eCommerce store, it’s hard for consumers to know whether or not a business is worthy of their hard earned money.
But there is something that virtually every single consumer enjoys — discounts. Combine the idea of getting something cheap with our psychological desire to enjoy things that are personalized just for us, and it’s easy to see why many marketers are looking to personalized discounts to skyrocket their sales.
We are going to take a look at some ways you can inject personalized promotions in your current marketing strategy. The three tactics described here include using AI to create deals, improving your ad campaign, and showing your customers that they matter.
Use Machine Learning for Predictive Deals
The first way to use personalized discounts to boost your sales is pretty popular on most websites today, and that’s the use of machine learning. Statistics show that 79 percent of leading companies use AI in their marketing campaign. Businesses are using AI for all sorts of reasons, including customer service, email marketing, and yes, as a way to offer customers exclusive discounts by using predictive selling and bundling deals.
If you want a great example, look no further than Amazon. If you’ve ever made a purchase on Amazon — and who hasn’t — you’ll know exactly what we are talking about. When you’re looking at an item, you’ll notice that there is always a box that says “Customers Also Bought..’ this is Amazon’s AI algorithm in action. They combine items typically bought together and allow the customer to add all of the items in their cart at once.
If you were looking for gardening tools, for example, Amazon may also offer you plant food and a book on gardening to complete the bundle. It’s important to note that not every bundle features a discount on Amazon; however, if you are going to add this feature to your website, you could offer a flat discount, or an escalating discount (5, 10, and 15 percent) depending on the number of items purchased.
Implement Retargeting Ads
Plenty of businesses around the world use retargeting ads. Here’s how it works. A customer comes to your website and is interested in your product. They add an item to their shopping cart but change their mind. They then decide to leave your website. End of story, right? Wrong.
When the prospect came to your website and put an item in their shopping cart, your website left a cookie on their browser. Now, when the potential customer is browsing through their social media accounts or on another website, they will get a retargeting ad reminding them that they almost made a purchase. If you add a discount to the add and a tracking link you can direct customers back to their shopping cart with an extra 10 percent discount or free shipping.
You can then track these links with your Google Analytics account and split test different ads to see which personalized ads encourage your lead to complete their purchase.
Show Customer Appreciation
The final way to add a personal touch to your discounts involves your email marketing campaign. An excellent starting point is offering a discount for new customers and email subscribers. In your welcome letter, you may want to add a link to give your subscriber a percentage of your choice off their first purchase. This type of personalized marketing can have a severe impact on your sales.
You could also offer special promotions for customers who have been a subscriber to your list for a time frame of your choice. Most businesses send emails annually during the month when the customer initially subscriber. When creating your sign up form, it’s a good idea to ask for your customer’s birthday or even birth month and then send out monthly birthday promotions to your subscribers. These small gestures show your customers that you value them and their business.
Personalized discounts are an excellent way to grow your business and build a loyal following. As your audience grows, you’ll discover many opportunities that allow you to build credibility and a custom experience for your customers. Your marketing strategy will continuously evolve as your business grows. There’s no shortage of customers looking for a great deal with a personal touch.